Mumbai, India – IndusInd Bank, India’s fifth-largest private sector lender with a balance sheet of $63 billion, has announced the immediate resignation of its Deputy CEO, Mr. Arun Khurana. The resignation comes in the wake of significant accounting irregularities related to the bank’s internal derivatives portfolio.
Mr. Khurana, who headed the Global Markets Division—including the derivatives business—submitted his resignation following the bank’s disclosure of a ₹1,912 crore (approximately $229.56 million) financial impact for the fiscal year ending March 31, 2025. The accounting lapses, which stem from the incorrect treatment of derivative trades over several years, have resulted in an estimated 2.27% reduction in the bank’s net worth as of December 2024, based on findings from an independent external investigation.
In a letter addressed to the Board of Directors, Mr. Khurana stated: “In light of the recent accounting issues related to internal derivative trades, I, having oversight of the Treasury Front Office function, as the Whole-Time Director, Deputy CEO, and a member of senior management of the bank, hereby resign, effective immediately.” The bank filed this letter with the stock exchange as part of its regulatory disclosure.
Since March 10, when the initial impact of the discrepancies was disclosed, IndusInd Bank’s shares have declined nearly 8%. The Reserve Bank of India (RBI) has reportedly recommended the resignation of both CEO Mr. Sumant Kathpalia and Deputy CEO Mr. Khurana, subject to the appointment and approval of suitable replacements.
To ensure operational continuity, IndusInd Bank recently appointed Mr. Santosh Kumar as Deputy Chief Financial Officer. Mr. Kumar will oversee the finance and accounts functions until a full-time CFO is appointed.
The bank is expected to announce its financial results for the full fiscal year before May 15, though the exact date has not yet been confirmed.