IndusInd Bank Deputy CEO Resigns on Loss; Stock Shows Resilience
Published • 29 April 2025 at 4:51 AM
IndusInd Bank Shares Up Despite Deputy CEO Exit Over ₹1960 Cr Loss
IndusInd Bank shares rose by 3% following the immediate resignation of Deputy CEO Arun Khurana, who cited accounting discrepancies in internal derivatives trading as the reason. Khurana, who oversaw the Treasury Front Office, stepped down amid scrutiny over notional profits recorded due to incorrect accounting of early derivative terminations. At 9:15 am, the stock was trading at ₹852.40, up 2.64% on the BSE, continuing its 30% gain over the past month. The bank disclosed that the discrepancies resulted in an adverse P&L impact of ₹1,959.98 crore as of March 31, 2025. An independent professional firm was appointed to investigate and submitted its report on April 26, confirming the earlier estimated loss. IndusInd Bank has since discontinued internal derivative trading from April 1, 2024, and is implementing stronger internal controls. The board is taking steps to ensure accountability and adjust senior leadership roles. Khurana expressed willingness to assist in a smooth transition despite his resignation.
IndusInd Bank Deputy CEO Resigns Amidst Trading Loss Probe
- IndusInd Bank shares rose 3% after Deputy CEO Arun Khurana's immediate resignation.
- Arun Khurana resigned citing accounting discrepancies in internal derivatives trading.
- Stock was trading at ₹852.40, up 2.64% at 9:15 am, continuing a 30% gain over the past month.
- Incorrect accounting of early derivative terminations led to notional profits and scrutiny.
- The adverse impact on P&L was estimated at ₹1,959.98 crore as of March 31, 2025.
- An independent investigation confirmed the accounting discrepancies on April 26, 2025.
- Internal derivative trading was discontinued from April 1, 2024.
- Stronger internal controls are being implemented, and leadership roles are being realigned.
- Khurana offered assistance for a smooth transition after his resignation.
