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4d ago

IndusInd Bank Navigates Leadership Void After ₹1,960 Crore Accounting Lapse

With top executives resigning, an RBI-approved interim committee manages operations as the search for new leadership intensifies.

IndusInd Bank sees high-profile exits after accounting lapse. What's next?
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Overview

  • IndusInd Bank confirmed a ₹1,960 crore accounting discrepancy in its internal derivative trades, uncovered through forensic audits by Grant Thornton and PwC.
  • CEO Sumant Kathpalia, Deputy CEO Arun Khurana, and CFO Gobind Jain have resigned, citing moral responsibility and oversight failures.
  • The Reserve Bank of India approved the formation of an interim executive committee, led by Soumitra Sen and Anil Rao, to oversee daily operations under board supervision.
  • Brokerages are divided on the bank's recovery outlook, with concerns about governance risks and potential deposit erosion countered by optimism for a leadership reset.
  • IndusInd Bank shares have rebounded to ₹838.45, but investor confidence hinges on the timely appointment of a new CEO and the restoration of trust.