IndusInd Bank will report a financial loss of nearly ₹2,000 crore in its 2024–25 books due to wrongly handled derivative trades. This issue goes back almost 6 years and came to light after internal and external audits. These trades were not accounted for correctly, causing profits to be shown higher than they actually were.
An external investigation by Grant Thornton, appointed by the bank’s board, confirmed the incorrect accounting treatment of internal derivative trades. The report also evaluated the roles of senior employees linked to the issue. Following this, the bank confirmed it has stopped internal derivative trades since April 2025.
Arun Khurana, the deputy CEO and executive director of IndusInd Bank, resigned immediately after the findings were released. In his resignation letter, he accepted responsibility for the loss since he oversaw the treasury front office, which handled these trades. He also offered support in transitioning his duties.
This marks the second major leadership exit in 2025. Earlier in January, the CFO, Govind Jain, stepped down, after which Khurana took on additional responsibilities as acting CFO. On April 18, the bank appointed Santosh Kumar as deputy CFO to manage financial operations.
In March, the RBI extended the term of MD & CEO Sumant Kathpalia by only one year instead of three, as earlier suggested by the board. This decision, combined with the accounting lapses, signals increased regulatory scrutiny and the possibility of leadership reshuffles ahead.
The bank’s board has begun identifying those responsible and is planning to restructure roles within senior management. They are focused on ensuring accountability and preventing similar lapses in the future.
Read More: IndusInd Bank to Realign Senior Management Roles After Accounting Review
As of April 29, 2025, at 11:20 AM, Indusind Bank ltd Share Price is trading at ₹836.55 per share, reflecting a surge of 0.72% from the previous day’s closing price. The stock’s 52-week high stands at ₹1,550.00 per share, while its low is ₹606.00 per share.
The resignation of Arun Khurana marks a major turning point for IndusInd Bank’s leadership and highlights the serious consequences of internal financial mismanagement. As the board works to restructure roles and restore trust, the incident underlines the importance of strong oversight in senior banking positions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 29, 2025, 3:31 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
