IndusInd Bank announced resignation of Deputy CEO Arun Khurana following the disclosure of accounting discrepancies leading to a ₹1,959.98 crore impact on the bank’s earnings.
In light of the recent accounting issues related to internal derivative trades, “I having oversight of the Treasury Front office function, as the whole time director, Deputy CEO and a part of senior management of the bank, hereby resign, effective immediately,” Khurana wrote in a letter to IndusInd Bank’s board that was included in a stock market filing.
“Pursuant to Regulation 30, Schedule III, Part A, Para A(7C) and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended, we hereby inform that Mr. Arun Khurana, Whole-time Director (Executive Director) & Dy. CEO, Key Managerial Personnel of the Bank, has by his letter dated April 28, 2025, resigned with immediate effect,” the filing read.
IndusInd Bank, through an official disclosure to stock exchanges on April 27, confirmed that an independent professional firm, appointed by its Board of Directors, submitted its investigative report on April 26. The firm’s report validated the cumulative adverse accounting impact of ₹1,959.98 crore on the bank’s Profit and Loss account as of March 31, 2025, closely aligning with the figure earlier disclosed on April 15.
According to the report, the discrepancies were primarily stemmed from the incorrect accounting of internal derivative trades especially during early terminations. These practices led to the premature recognition of notional profits, marking the principal root cause of the financial misstatements. It also evaluated the roles and actions of key employees involved.
“The board is taking necessary steps to fix accountability of the persons responsible for these lapses and re-align roles and responsibilities of senior management,” the bank informed the bourses.
IndusInd Bank has already discontinued all internal derivative trading activities from April 1, 2024. Furthermore, the resultant financial impact will be duly reflected in the bank’s FY24-25 financial statements, alongside measures to fortify internal controls.
