Sumant Kathpalia, CEO and MD of IndusInd Bank.
Sumant Kathpalia, CEO and MD of the private sector bank, IndusInd Bank, resigned from his post on Tuesday. Giving information about this in a regulatory filing, IndusInd Bank said that Kathpalia has resigned from the bank’s services on April 29, 2025 through its letter on April 29, 2025. According to PTI news, Kathpalia said in the resignation letter addressed to the bank’s board that I take moral responsibility, because in my cognizance, various tasks/omission cases have been brought to my cognizance. I request that my resignation be taken in records at the end of work time today.
Approval sought from Reserve Bank of India
According to the news, Sumant Kathpalia resigned in the financial year 2024-25 with immediate effect in view of the accounting lapse costing Rs 1,960 crore to the lender. The filing stated that the board has sought approval from the Reserve Bank of India to set up an ‘Executive Committee’ for an interim period to discharge the duties, roles and responsibilities of the bank’s Chief Executive Officer (CEO), unless a permanent CEO is appointed by the bank.
These officials had already given their support
Let me tell you, before this, the bank’s deputy CEO Arun Khurana resigned on Monday. Another major managerial personnel Chief Financial Officer (CFO) Govind Jain resigned in January before the incident. Earlier this week, the bank informed that the external auditor appointed by the bank was 1,959 on P&L by 31 March. A cumulative adverse accounting effect of Rs 98 crore has been determined, which is similar to the amount stated on 15 April.
Bank reported accounting lapses
On April 15, IndusInd Bank revealed the Aadhaar report of another external agency that the accounting lapse at derivative portfolio will have a negative impact of Rs 1,979 crore on its net worth. The bank has assessed an adverse effect of 2.27 percent on its net price by December 2024 due to anomalies related to derivative deals. The bank had reported an accounting lapse in derivative portfolio last month, which is estimated to have an adverse effect of about 2.35 percent on the bank’s net worth by December 2024.
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