Arun Khurana Quits As IndusInd Bank Deputy CEO

Arun Khurana, deputy chief executive officer of IndusInd Bank, has resigned with immediate effect on Monday, the bank told exchanges.

In his resignation letter, Khurana cited the recent accounting discrepancies in the bank's derivatives business as the main reason behind this decision.

"Considering the recent unfortunate developments, wherein the bank determined an adverse accounting impact on P&L, on account of incorrect accounting in 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, with immediate effect," he said.

The resignation comes a day after the bank disclosed that an independent investigation into the accounting discrepancies had identified key people responsible. The bank's board was set to determine changes and realignment in responsibilities of senior management.

An independent investigation was called on March 20, about ten days after the bank itself disclosed that it had identified certain discrepancies in the derivatives portfolio. According to the bank's initial estimates, the financial hit would have ranged between Rs 1,500 and 2,000 crore. An external audit by PwC determined the impact at Rs 1,979 crore as of April 15. The independent investigation pointed at a financial hit of Rs 1,960 crore.

The financial hit will be taken in the fourth quarter results, the bank had said.

This is the second major exit from IndusInd Bank in recent months, after CFO Gobind Jain quit in January.

The Reserve Bank of India has already cut short MD & CEO Sumant Kathpalia's tenure to March 2026 by giving only a one-year extension. The board of the bank had originally recommended a three-year extension for Kathpalia, starting March 2025.

IndusInd Bank's board is expected to submit names of suitable successors by October, after which the regulator will finalise the person who will take over from Kathpalia.