Mega Exit At Mumbai's Private Bank: IndusInd Bank's Deputy CEO Arun Khurana Steps Down, Here's Why

IndusInd Bank Saga: In a major development, the Mumbai-based leading private banker, IndusInd Bank has announced the resignation of Arun Khurana, who was the whole-time director and deputy CEO. The exit has come into effect immediately on April 28. It needs to be noted that major exits in top management of IndusInd have been expected after the lender identified discrepancies worth Rs 1,979 crore in its derivatives portfolio, which is going to hit its earnings for FY25.

IndusInd Bank CEO Exit:

In its regulatory filing, IndusInd Bank said, "Arun Khurana, Whole-time Director (Executive Director) & Dy. CEO, Key Managerial Personnel of the Bank, has by his letter dated April 28, 2025, resigned with immediate effect."

In his letter of resignation, Arun Khurana said, "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."

"I would like to offer my assistance, as deemed appropriate, in transitioning my responsibilities to ensure a smooth handover," Khurana said.

" I would like to take this opportunity to thank and appreciate the Board in believing and entrusting me with responsibilities through my career with the Bank and I wish the Bank all the best for the future," Khurana added lastly.

Khurana along with the CEO Sumant Kathpalia of IndusInd Bank have been under RBI's radar since last month. In March, RBI cut short IndusInd Bank's CEO Kathpalia's tenure for 1 year till March 23, 2026, compared to the three-year tenure that IndusInd Bank was mulling. As per reports, RBI asked IndusInd's CEO and Deputy CEO to resign from their positions due to accounting lapses in the bank, however, IndusInd has denied these allegations.

IndusInd Bank Discrepancies:

Recently, IndusInd Bank identified Rs 1,979 crore discrepancies in its derivatives account after an external audit report. Based on the report, IndusInd said, "the Bank has assessed an adverse impact (on a post-tax basis) of 2.27% to the Bank's Net Worth as of December 2024 on account of these discrepancies. The Bank will appropriately reflect the resultant impact in the financial statements for FY 2024-25 and continue to take suitable steps to augment the internal controls relating to the derivative accounting operations of the Bank."

Since then, reports have said that there could be major exits from IndusInd's top management level.

Notably, the Rs 1,979 crore impact is below RBI's assessment of about Rs 2,000 crore. Also, the external audit expected a 2.27% adverse impact on the bank's financial books for FY25, which is lower than IndusInd's internal audit estimate of 2.35%.

IndusInd Bank Share Price:

IndusInd Bank's share price ended at Rs 830.45 apiece on BSE, up by 1% with market cap of Rs 64,696.58 crore.

Further, the lender's Q4 results for FY25 will be keenly awaited. For Q4, brokerage Equirus Securities said, "Expect business growth to remain weak with both Advances/Deposits declining qoq as the bank addresses the issues in its treasury book. NIMs to decline by 15-20bps qoq on interest reverals from MFIs. Slippages to remain elevated from the MFI segment. Expect elevated provisions on account of treasury provisions." Key factors to watch out for are --- trends in collections in VF/MFI, losses and NIM (%) commentary around the treasury book.