The MD& CEO Sumant Kathpalia resigned from the bank due to Derivatives Accounting Lapse; Board of Directors, lndusind Bank has sought approval of the Reserve Bank of India to constitute a “Committee of Executives”, to discharge the duties, roles and responsibilities of the Chief Executive Officer
FinTech BizNews Service
Mumbai, April 29, 2025: Sumant Kathpalia (DIN:01054434), Managing Director & CEO, Key Managerial Personnel of the Bank, has by his letter dated April 29, 2025, resigned from services of the Bank with effect from close of working hours on April 29, 2025.
This is a second top level resignation in the last 2 days in the wake of revelations of a Rs1530 cr accounting discrepancy pertaining to internal Derivative trades. Mr. Arun Khurana, Whole-time Director (Executive Director) & Deputy CEO, had resigned yesterday.
The Board of Directors, lndusind Bank has, pursuant to the provisions of Section 10B(9) of the Banking Regulation Act, 1949 sought approval of the Reserve Bank of India to constitute a “Committee of Executives”, to discharge the duties, roles and responsibilities of the Chief Executive Officer (CEO) of the Bank, for an interim period until a permanent CEO is appointed by the Bank.
The Board Meeting commenced at 4.42 p.m. (IST) and concluded at 5.14 p.m. (IST).
In a letter, dated today, written to the Board of Directors lndusind Bank; Sumant Kathpalia, has informed as follows:
“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. 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.”
In an Exchange filing, the Board gave the information of today’s development of resignation of Sumant Kathpalia from the post of Managing Director & CEO, effective today.
Mr. Arun Khurana, Whole-time Director (Executive Director) & Deputy CEO, Key Managerial Personnel of the Bank, had by his letter dated April 28, 2025 (yesterday), resigned with immediate effect.
