Overview

• Managing Director and CEO Sumant Kathpalia resigned on April 29, 2025, citing moral responsibility for accounting discrepancies in the bank's derivatives portfolio.
• Deputy CEO Arun Khurana also resigned a day earlier, acknowledging oversight lapses in the treasury front office function related to the discrepancies.
• The Reserve Bank of India has approved the formation of an interim executive committee to manage the bank's daily operations until a new CEO is appointed, or for up to three months.
• An independent audit confirmed a ₹1,959.98 crore adverse impact on the bank's profit and loss account, stemming from incorrect accounting of internal derivative trades and premature profit recognition.
• IndusInd Bank has ceased all internal derivative trading activities since April 2024 and plans to reflect the financial impact in its FY 2024–25 statements while implementing strengthened governance measures.