The CEO of Indusind Bank resigns as part of the accounting scandal of 1,960 crore derivatives

The managing director and CEO of Indusind Bank, Sumant Kathpalia, resigned on Tuesday with immediate effect and took over the “moral responsibility” for massive accounting in the bank's derivative portfolio, which cost the lender almost 1,960 rupees.
In his letter of withdrawal, Kathpalia said: “In view of the various commission files/omission, which were informed to me.
His exit is the latest in a series of exits at the senior level after deputy CEO Arun Khurana on Monday and the CFO-Govind Jain was handled in January, both of whom occurred before the topic.
The board of directors of the bank has contacted the Reserve Bank of India (RBI) in order to apply for approval for a temporary “committee of managers” to manage the tasks of the CEO until a new guide is appointed.
An independent probe, launched on March 20, showed that the irregularities from the failure of internal derivative transactions are due, especially in cases of early termination in which fictional profits were incorrectly booked. This has led to a cumulative adverse effects of 1,959.98 rupees on the bank's profit and loss account on March 31, 2025, which confirmed the previous disclosure on April 15.
It is also expected that the discrepancies of the bank's net assets will hand over by 2.27% from December 2024.
In response to the results, the Board of Directors began to reorganize the management roles of the management and to implement accountability, based on the assessment of employee participation by the report. The bank had already stopped all internal derivative trade in accordance with the RBI instructions from April 1, 2024.
The bank is expected to report either a decline in net profit or after severe loss in the fourth quarter of 2024-25. The bank still has to announce the date for its quarterly results.