Mon Mar 17 04:00:00 UTC 2025: ## RBI Assures Public, IndusInd Bank Stock Rebounds After Valuation Hit

**Mumbai, March 18** – IndusInd Bank’s shares experienced a significant rebound on Monday, climbing 5.19% to ₹707 on the BSE. This surge followed a statement from the Reserve Bank of India (RBI) reassuring the public about the bank’s financial stability. The RBI confirmed it is closely monitoring the lender but stressed there is no cause for depositor concern regarding recent speculative reports.

The positive market reaction comes after IndusInd Bank disclosed a preliminary impact of 2.4% on its net worth due to a change in the valuation of derivative transactions. This announcement prompted several rating downgrades and analyst predictions of potential losses for the bank in the March quarter.

However, IndusInd Bank’s Managing Director and CEO, Sumant Kathpalia, maintained the bank expects to remain profitable in the fourth quarter and for the full fiscal year. He highlighted the bank’s strong capital adequacy ratio, exceeding 15%. The RBI’s statement further supported this, citing a comfortable Capital Adequacy Ratio of 16.46% and a Provision Coverage Ratio of 70.20% as of December 31, 2024. The bank’s Liquidity Coverage Ratio (LCR) also stood at a healthy 113% as of March 9th, well above the regulatory requirement.

IndusInd Bank has engaged an external audit team to thoroughly review its systems and assess the impact of the derivative valuation discrepancy. The RBI has directed the bank to complete remedial actions by the end of the current quarter (Q4FY25). Despite the recent volatility, the stock remains down 27% year-to-date, contrasting with the BSE Sensex’s 6% drop during the same period.

Read More