IndusInd Bank Faces Leadership Shake-Up Amid Financial Scandal

Sumant Kathpalia, IndusInd Bank's MD and CEO, resigned following accounting discrepancies costing Rs 1,960 crore. His resignation comes alongside others, including the bank's Deputy CEO and CFO. The bank seeks RBI's approval to form a temporary executive committee to manage CEO duties until a permanent replacement is appointed.

IndusInd Bank is undergoing significant management changes following the sudden resignation of its MD and CEO, Sumant Kathpalia, due to accounting lapses. The resignation was effective immediately, marking a pivotal moment for the bank.

In his resignation letter, Kathpalia expressed moral responsibility for the financial discrepancies that cost the bank Rs 1,960 crore. Subsequently, IndusInd Bank has sought the Reserve Bank of India's approval to establish an interim 'Committee of Executives' to manage CEO duties.

The leadership crisis deepened as the Deputy CEO and CFO also resigned. The bank's external auditor reported a cumulative adverse accounting impact, highlighting significant lapses in derivative deals affecting the bank's net worth.

(With inputs from agencies.)