IndusInd Bank shares gain 3% as Deputy CEO resigns; key details

Shares of IndusInd Bank gained 3 per cent in Tuesday's trade after Deputy CEO Arun Khurana resigned with immediate effect, citing the recent accounting discrepancies in the derivatives trading. having oversight of the Treasury Front office function, as the Whole Time Director, Deputy CEO and a part of Senior Management of the bank, Khurana submitted his resignation.

At 9.15 am, the stock was trading 2.64 per cent higher at Rs 852.40 on BSE. The scrip is up 30.14 per cent in the past one month against a 3.99 per cent rise in the BSE Sensex during the same period.

To recall, IndusInd Bank Ltd recently said the accounting discrepancies in its derivatives portfolio stemmed from incorrect accounting of internal derivative trades, particularly in cases of early termination. These misstatements led to the recording of notional profits, it suggested earlier. 

IndusInd Bank had earlier suggested the bank board was taking necessary steps to ensure accountability for those responsible for the lapses and realigning the roles and responsibilities of senior management. 

Khurana insisted that he would offer assistance, as deemed appropriate, in transitioning his responsibilities to ensure a smooth handover. 

"Considering the recent unfortunate developments, wherein the Bank determined an adverse accounting impact on P&L, on account of incorrect accounting for 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 said in his resignation letter. 

IndusInd Bank, a private sector lender, appointed an independent professional firm to conduct a thorough investigation into the issue. The firm examined the involvement and actions of key employees and submitted its findings to the bank on April 26, 2025. It estimated a total adverse impact of Rs 1,959.98 crore on the Profit and Loss (P&L) statement as of March 31, 2025—aligning with the preliminary figure disclosed on April 15.

The bank confirmed that this impact will be reflected in its FY 2024–25 financial statements. It also announced steps to enhance internal controls and noted that internal derivative trading was discontinued as of April 1, 2024.