Taking the moral responsibility for discrepancies found in IndusInd Bank’s derivative portfolio, the lender’s MD, CEO Sumant Kathpalia has resigned from his position with immediate effect.
“I wish to submit my resignation from the services of the Bank in relation to the ongoing Derivatives discussion. I undertake moral responsibility, given the various acts of commission/ omission that have been brought to my notice,” Kathpalia said in his resignation letter to the board of directors.
“I would request that my resignation be taken on record at close of working hours today. I would like to thank the Regulators, Board, my Management Team members and staff for the support I got during my tenure of 5 years as the CEO,” he said.
The board of IndusInd Bank has now sought approval of the Reserve Bank of India (RBI) to constitute a committee of executives who will discharge the duties of the CEO till a permanent CEO is appointed by the bank.
Kathpalia’s resignation comes a day after the bank’s deputy CEO and ED Arun Khurana resigned from the bank. Khurana said he had an oversight on the bank’s internal derivatives trade, where discrepancies were found, which led to adverse capital impact on the bank’s balance sheet.
This is a developing story, please check back for updates
Published on April 29, 2025
