NEW DELHI (Reuters) – India’s central bank said on Saturday that private lender IndusInd Bank is well-capitalised and the financial position of the bank remains satisfactory.
Earlier this month, IndusInd Bank reported it had discovered an accounting discrepancy in the way it booked currency derivatives stretching back at least six years.
The resulting estimated $175 million impact roughly equates to an entire quarter’s earnings.
The bank backed by the Hinduja Group has had a turbulent few months.
“As such, there is no need for depositors to react to the speculative reports at this juncture,” an official at the Reserve Bank of India said in a statement about IndusInd.
“The bank’s financial health remains stable and is being monitored closely by Reserve Bank.”
The private lender has engaged an external audit team to comprehensively review their current systems, and to assess and account for the actual impact.
(Reporting by Rupam Jain; Editing by Jacqueline Wong)
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