Sunday, 22 Jun 2025
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms & Conditions
  • DMCA
Subscribe
Brinks Report
  • Featured
  • Money Matters
  • Business
  • IPL
  • Technology
  • Automobile
  • Entertainment
  • Sports
  • More
    • People
    • World
    • Health and Wellness
    • Horoscope
  • Today’s News
  • 🔥
  • World
  • Business
  • Economy
  • Technology
  • Automobile
  • IPL
  • People
  • Entertainment
  • Sports
  • India
Font ResizerAa
Brinks ReportBrinks Report
Search
  • Featured
  • Money Matters
  • Business
  • IPL
  • Technology
  • Automobile
  • Entertainment
  • Sports
  • More
    • People
    • World
    • Health and Wellness
    • Horoscope
  • Today’s News
Have an existing account? Sign In
Follow US
© 2024-2025 Brinks Report. All content, including text, images, and other media, is copyrighted.
Brinks Report > Blog > Economy > RBI Alarm Bells Ignored? IndusInd Bank’s $2B Crash Reveals Governance Crisis
Economy

RBI Alarm Bells Ignored? IndusInd Bank’s $2B Crash Reveals Governance Crisis

Dolon Mondal
Last updated: March 26, 2025 10:32 am
Dolon Mondal
Share
Rbi alarm bells ignored? Indusind bank's $2b crash reveals governance crisis
SHARE
Trulli

The Shock Disclosure

IndusInd Bank, India’s fifth-largest private lender, is facing scrutiny after uncovering significant discrepancies in its derivatives accounting. The error, expected to reduce its net worth by 2.35% (around $175 million), has erased nearly a quarter of its profits. As a result, the bank’s market value has plunged by $2 billion, leaving investors deeply concerned.

While the Reserve Bank of India (RBI) insists the bank remains solvent, the incident has raised serious questions: Are weak governance practices putting India’s banks at risk?

Trulli

This isn’t the first time an Indian bank has faced governance issues. In 2018, ICICI Bank’s CEO was ousted over conflict-of-interest allegations. Then in 2020, Yes Bank collapsed due to reckless lending, requiring a government bailout.

Now, IndusInd’s case highlights another red flag: lax board oversight. The bank admitted that some derivatives trades continued even after the RBI banned them a year ago. Worse, portions of these trades weren’t properly recorded.

Also Read: RBI Keeps Watch: The Truth Behind IndusInd Bank’s Accounting Issue

Who’s to Blame?

The bank’s largest shareholder, Ashok Hinduja, claims the board was unaware of the discrepancies. Meanwhile, Moody’s has warned that such lapses could hurt the bank’s reputation and liquidity, putting its rating under review.

Former RBI Governor Shaktikanta Das has long stressed the need for stronger bank governance. In a 2024 speech, he urged boards to stay vigilant against operational risks. But IndusInd’s slip-up suggests many still aren’t listening.

Market Silver Linings

Amid the turmoil, there’s some good news for India’s economy:

  • The rupee has rebounded as Asia’s best-performing currency this month.
  • Forex reserves have hit a three-month high.
  • Stock markets are recovering after a rough start to the year.

Also Read: Grant Thornton Investigates IndusInd Bank Over $175M Overvaluation

Image Slider
Image 1 Image 2 Image 3
TAGGED:banking riskscorporate governanceIndia financeIndusInd BankRBI
Share This Article
Facebook Whatsapp Whatsapp Copy Link Print
What do you think?
Love0
Sad0
Happy0
Joy0
Sleepy0
Angry0
Surprise0
Previous Article Investor alert: goldman’s ‘alpha list’ could reshape 2025 market trends Investor Alert: Goldman’s ‘Alpha List’ Could Reshape 2025 Market Trends
Next Article Stock market update: sensex gains over 100 points, nifty above 23,700 Stock Market Update Today: Sensex Gains Over 100 Points, Nifty Above 23,700
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Your Trusted Source for Accurate and Timely Updates!

Brink’s Report delivers fresh, unbiased, and engaging content across politics, business, tech, entertainment, and more. From breaking news to deep dives, we keep you informed—and intrigued—with accurate reporting and diverse perspectives. Explore the world, one story at a time.
FacebookLike
XFollow
RSS FeedFollow
Ad image

You Might Also Like

Ircon wins rs 873-crore tunnel contract, shares rise 1. 7%
BusinessEconomy

IRCON International Shares Rise by 1.7% After Winning Rs 873-Crore Railway Tunnel Contract

By
Ankita Das
Sebi bans arshad warsi & 59 others for stock manipulation
BusinessEconomy

From the Big Screen to a Big Ban: Why Actor Arshad Warsi and his Wife has Banned from the Stock Market?

By
Ankita Das
Websol energy q4 profit jumps 5% | fy25 revenue soars
Economy

Websol Energy Shares Rise 5% After Big Profit in Q4

By
Ankita Das
India-uk fta
Economy

Premium Cars, Yoga Visas, and More: What India-UK FTA Means for You

By
Dolon Mondal
Ad image

About US


Brink’s Report delivers fresh, unbiased, and engaging content across politics, business, tech, entertainment, and more. From breaking news to deep dives, we keep you informed—and intrigued—with accurate reporting and diverse perspectives. Explore the world, one story at a time.

Top Categories
  • World
  • Business
  • Economy
  • Technology
Usefull Links
  • Contact Us
  • About Us
  • Privacy Policy
  • DMCA

© 2024-2025 Brinks Report. All content, including text, images, and other media, is copyrighted.