Overview

• An independent probe confirmed a ₹1,959.98 crore adverse impact on IndusInd Bank's profit and loss statement due to incorrect accounting of internal derivative trades.
• MD & CEO Sumant Kathpalia and Deputy CEO Arun Khurana have resigned, citing moral responsibility for oversight failures linked to the accounting discrepancies.
• The Reserve Bank of India reportedly advised both executives to step down after concerns over lapses in governance and internal controls emerged.
• IndusInd Bank has ceased all internal derivative trading activities since April 1, 2024, and the financial impact will be reflected in its FY24-25 statements.
• The board, with RBI approval, has established a Committee of Executives to oversee operations until a new CEO is appointed or for a maximum of three months.