The penalty was imposed through an order dated August 14, 2026, under the provisions of the Banking Regulation Act, 1949.
The RBI said its Statutory Inspection for Supervisory Evaluation of IndusInd Bank was conducted with reference to the bank’s financial position as on March 31, 2025.
Based on supervisory findings of non-compliance and related correspondence, the central bank issued a notice to the lender seeking an explanation on why a penalty should not be imposed.
After considering the bank’s reply, additional submissions and oral submissions made during a personal hearing, the RBI said two charges were sustained.
These were payment of interest on deposits held in certain current accounts and undertaking activities in the nature of ‘Synthetic Securitisation’.
The RBI said the action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
The central bank added that imposition of the monetary penalty is without prejudice to any other action that may be initiated by the RBI against the bank.
In a separate development, RBI has imposed a monetary penalty of ₹6.20 lakh on Northern Arc Capital for non-compliance with certain provisions of its directions on ‘Disclosures in Financial Statements – Notes to Accounts’ and ‘Internal Ombudsman for Regulated Entities.’
It also imposed a ₹3.10 lakh penalty on Muthoot MCred, formerly Muthoottu Mini Financiers, for non-compliance with provisions on asset classification.
IndusInd Bank Ltd had reported a 46.5% year-on-year increase in net profit for the first quarter. The bank posted a net profit of ₹1,002.5 crore, compared with the CNBC-TV18 poll estimate of ₹725 crore. The lender had reported a net profit of ₹684 crore in the corresponding quarter last year.
Net interest income (NII), the difference between interest earned and interest paid, rose 1% year-on-year to ₹4,685 crore, higher than the CNBC-TV18 poll estimate of ₹4,460 crore and up from ₹4,640 crore a year ago.
Shares of IndusInd Bank closed at ₹1,019 on the NSE on August 14, down 0.56% or ₹5.70 from the previous close.
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First Published: Aug 14, 2026 6:43 PM IST
