IndusInd Bank CEO Steps Down Amid Accounting Scandal

IndusInd Bank's shares remained stable as the CEO, Sumant Kathpalia, resigned over accounting issues in the derivatives portfolio, costing the bank Rs 1,960 crore. The bank's stock showed minor fluctuations, and the board plans to form a temporary executive committee until a new CEO is appointed.

IndusInd Bank's stock performance was stable on Wednesday following the resignation of its CEO Sumant Kathpalia. Kathpalia resigned due to accounting discrepancies in the derivatives portfolio, resulting in a financial hit of Rs 1,960 crore.

The shares closed at Rs 838.45 on BSE, slightly rising by 0.14%, after dipping earlier in the day. Meanwhile, on NSE, the stock settled at Rs 838.40, indicating a minor increase.

The resignation comes after Deputy CEO Arun Khurana also tendered his resignation, with the Chief Financial Officer Govind Jain having resigned in January. An external audit had previously disclosed a significant adverse accounting impact by March 31. IndusInd's board now seeks RBI's approval to appoint an interim executive committee.

(With inputs from agencies.)