IndusInd Bank Share Price Declines After CEO Sumant Kathpalia Resigns

The shares of IndusInd Bank Ltd. fell on Wednesday after the lender's chief executive officer Sumant Kathpalia resigned amid an accounting discrepancy row. The resignation will come into effect immediately, the lender said in an exchange filing on Tuesday.

"I undertake moral responsibility, given the various acts of commission/omission that have been brought to my notice. I would request that my resignation be taken on record at close of working hours today," Kathpalia said in the resignation letter, which was attached with the filing.

This comes a day after the bank's deputy CEO Arun Khurana submitted his resignation.

Kathpalia was set to leave the bank in March 2026, after the RBI cut his tenure extension to one year, as opposed to the three-year extension sought by the board. His exit puts an end to a crucial chapter in IndusInd Bank's history, where questions on governance were raised.

Additionally, IndusInd Bank has received approval from the Reserve Bank of India to constitute a “Committee of Executives” comprising of Soumitra Sen and Anil Rao to discharge the duties, roles and responsibilities of the CEO.

The shares of IndusInd Bank fell as much as 3.21% to Rs 810.05 apiece, the lowest level since April 25. The stock pared losses to trade 2.12% lower at Rs 819.20 apiece, as of 9:51 a.m. This compares to a 0.03% advance in the NSE Nifty 50 Index.

It has fallen 45.93% in the last 12 months and 15% year-to-date. Total traded volume so far in the day stood at 1.6 times its 30-day average. The relative strength index was at 53.60.

Out of 44 analysts tracking the company, 18 maintain a 'buy' rating, 18 recommend a 'hold,' and eight suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 7.2%.