IndusInd Bank CEO Sumant Kathpalia and Deputy CEO Arun Khurana resigned after an internal derivatives accounting lapse, prompting RBI intervention and raising concerns over governance.
Sumant Kathpalia steps down as IndusInd Bank CEO
Sumant Kathpalia has resigned from his position as the Chief Executive Officer (CEO) of IndusInd Bank, following a serious issue related to the bank’s handling of internal derivative trades. This problem affected the bank’s financial statements and led to growing concerns about how the bank is being managed. In his resignation letter, Kathpalia said he was taking “moral responsibility” for the matter and asked the bank to consider his resignation effective by the end of the same business day.
This development comes just one day after Arun Khurana, the Deputy CEO of the bank, also stepped down. Khurana had direct responsibility for the Treasury Front Office – the division where the problematic derivative accounting occurred. In his resignation letter, Khurana wrote that the recent events were unfortunate and that he accepted full responsibility as a senior leader of the bank.
Sources close to the matter said that the Reserve Bank of India (RBI) had advised both Kathpalia and Khurana to resign after discovering the accounting lapse. The RBI was reportedly n
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