IndusInd Bank CEO Sumant Kathpalia Resigns, Committee to Run Bank

IndusInd Bank's MD and CEO, Sumant Kathpalia, resigned on Tuesday, marking a major leadership change at India's fifth-largest private bank.

His exit comes just a day after Deputy CEO Arun Khurana also resigned, following the discovery of accounting issues in the bank’s derivatives portfolio.

An independent firm, hired by the bank’s board on March 20, submitted its report on April 26. The report confirmed that incorrect accounting practices caused a total negative impact of ₹1,959.98 crore on the bank’s profit and loss as of March 31, 2025.

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"I wish to submit my resignation from the services of the Bank in relation to the ongoing Derivatives discussion. I undertake moral responsibility, given the various acts of commission/ omission that have been brought to my notice. I would request that my resignation be taken on record at close of working hours today," Kathpalia said in his resignation letter.

"The Board has constituted such Committee of Executives to oversee the operations of the bank, under the oversight and guidance of the Oversight Committee of the Board till a new MD&CEO...assumes charge or a period of 3 months," IndusInd Bank said in a regulatory filing.

After the CEO’s resignation, IndusInd Bank said on Wednesday that its board has set up a ‘committee of executives’ to manage the bank’s operations.

This committee will be led by the board’s chairman and include the heads of the Audit, Compensation & Nomination, and Risk Management Committees.

The RBI approved the formation of this committee. The bank added that it is taking all necessary steps to maintain stable operations and uphold strong governance standards.

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