IndusInd Bank shares fall 3% post-Sumant Kathpalia's resignation; RBI approves constitution of 'Committee of Executives'

The stock in the early deals on Wednesday, April 30, slipped as much as 3.2% to ₹810.40 apiece on the BSE.

Kathpalia resigned from his post with immediate effect following the derivatives accounting discrepancies matter that was first reported in March this year. The financial implication of the accounting lapses is ₹1,960 crore to the bank.

The private sector lender informed stock exchanges of Kathpalia's resignation last evening.

Kathpalia, Managing Director & CEO, has, by his letter dated April 29, 2025, resigned from the services of the bank with effect from the close of working hours on April 29, 2025, IndusInd Bank said in a regulatory filing.

"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 the close of working hours today," Kathpalia said in a resignation letter addressed to the board of the bank.

The board has sought approval of the Reserve Bank of India to constitute a 'Committee of Executives' to discharge the duties, roles, and responsibilities of the Chief Executive Officer (CEO) of the bank for an interim period until a permanent CEO is appointed by the bank, as per the filing.

Earlier this week, the private sector lender had informed that a bank-appointed external auditor has determined a cumulative adverse accounting impact on profit & loss at ₹1,959.98 crore as of March 31, which is similar to the amount disclosed on April 15.

Kathpalia’s resignation comes a day after the lender’s long-time director and deputy CEO, Arun Khurana, stepped down.

“…we hereby inform you that Mr Sumant Kathpalia, Managing Director & CEO, Key Managerial Personnel of the Bank, has by his letter dated April 29, 2025, resigned from services of the Bank with effect from close of working hours on April 29, 2025,” the company said in a statement to the stock exchanges.