IndusInd Bank Faces Shakeup After Major Accounting Lapse

IndusInd Bank's shares fell over 3% following the resignation of MD and CEO Sumant Kathpalia due to accounting lapses with financial implications of Rs 1,960 crore. This has prompted a leadership overhaul, as key executives including the Deputy CEO and CFO have stepped down amidst calls for regulatory review.

Shares of IndusInd Bank dropped over 3% on Wednesday after its Managing Director and CEO, Sumant Kathpalia, resigned suddenly due to significant accounting errors in the bank's derivatives portfolio, with financial repercussions amounting to Rs 1,960 crore.

The bank's stock fell 3.21%, closing at Rs 810.40 on the BSE, and Rs 810.05 on the NSE, as the institution grapples with the fallout from this revelation.

In a regulatory statement, the bank revealed that Kathpalia accepted moral responsibility for these incidents. His resignation is the latest in a series of significant departures, following that of Deputy CEO Arun Khurana and CFO Govind Jain amidst disclosures of the severe financial impact.

(With inputs from agencies.)