New Delhi, April 30 — IndusInd Bank has announced the formation of a special committee of senior officials to oversee its operations following the resignation of CEO Sumant Kathpalia. The decision comes in the wake of a major accounting lapse that led to a reported loss of ₹1,960 crore for the financial year 2024–25.
As per agency report, the bank informed stock exchanges that its Board of Directors has constituted an "Executive Committee" to supervise operations until a new Managing Director and CEO is appointed or for a period of three months, whichever is earlier. This move has been approved by the Reserve Bank of India.
Kathpalia stepped down from his role on April 29, citing moral responsibility for the significant accounting discrepancies identified by the bank’s external auditors. The auditors had determined a cumulative adverse impact of ₹1,959.98 crore on the bank’s profit and loss accounts as of March 31, which aligns closely with the earlier figure reported on April 15.
In his resignation letter to the board, Kathpalia stated that he accepted moral accountability for the lapses and requested his resignation be accepted by the end of the business day. His departure follows that of Arun Khurana, the Deputy CEO, who also resigned earlier this week. Khurana was responsible for the bank’s treasury front office operations, which include direct dealings with external markets and clients for executing trades and managing risk.
Khurana cited recent "unfortunate developments" in his resignation, referring to the internal misreporting and misaccounting of futures and options transactions that led to the substantial financial loss.
The dual resignations of the bank's top leadership have raised significant concerns within the financial sector. The executive committee formed by the board is expected to ensure continuity and stability in the bank’s operations during this transitional phase.
Market observers are now closely watching how IndusInd Bank will navigate through this leadership vacuum and regain investor confidence after the disclosure of the accounting irregularities.
