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Business Standard
28-04-2025
- Business
- Business Standard
IndusInd Bank's deputy CEO Arun Khurana quits over accounting lapses
Arun Khurana, deputy chief executive officer of IndusInd Bank, has resigned with immediate effect, taking responsibility for the loss incurred by the bank due to accounting lapses that led to close to Rs 2,000 crore of loss. '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,' Khurana said in his resignation letter dated today. On Sunday, the private sector lender IndusInd Bank disclosed to the exchanges that independent professional firm Grant Thornton, which was appointed by its board to find out the root cause behind the discrepancy in the derivative portfolio, among other things, has identified incorrect accounting of internal derivative trades by the bank, resulting in a loss of Rs 1,959.98 crore. The report also examined the roles and actions of key employees in this context and said the bank's board is taking necessary steps to fix accountability of the persons responsible for these lapses and re-align roles and responsibilities of senior management. This is the second high-profile exit from the bank in 2025. In January, months before the loss and the accounting lapses came to light, Govind Jain, chief financial officer and a key managerial person, resigned to pursue other opportunities. Deputy CEO Khurana was handed the additional charge as the CFO of the bank with effect from January 21. Earlier this month, the bank named Santosh Kumar as its deputy CFO, with effect from April 18. Khurana joined the bank in November 2021 as head of the Global Markets Group. He was earlier with the Royal Bank of Scotland (RBS), Singapore, as the regional head of corporate solutions for the Asia Pacific region. In March, the Reserve Bank of India extended the term of the current MD & CEO Sumant Kathpalia for only one year, despite the board approving a three-year term. The bank will have to start the process of finding a successor to Kathpalia, whose term will end in March 2026.
Economic Times
28-04-2025
- Business
- Economic Times
IndusInd Bank deputy CEO Arun Khurana resigns after probe confirms discrepancies in derivatives accounting
IndusInd Bank on Monday said that Arun Khurana, the bank's Whole-time Director (Executive Director) and Deputy CEO, has resigned from his position with immediate effect. ADVERTISEMENT The decision comes after the private lender on Sunday said it will take action against employees responsible for the lapses and re-align senior management roles to strengthen accountability. In his resignation letter addressed to the Board of Directors, Khurana cited recent developments involving adverse accounting impacts on the bank's profit and loss account. These impacts were linked to incorrect accounting of internal derivative trades under his oversight as part of the Treasury Front Office function. "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," Khurana stated in his letter. The developments follow an independent investigation by a professional firm appointed by the bank's board on March 20, 2025. The firm submitted its report on April 26, confirming that incorrect accounting practices led to an adverse cumulative impact of Rs 1,959.98 crore on the bank's profit and loss account as of March 31, 2025. The discrepancies mainly arose from incorrect accounting of internal derivative trades, particularly in cases involving early termination. These mistakes resulted in the recording of notional profits and distorted the bank's financials. ADVERTISEMENT As a preventive step, the bank had already discontinued all internal derivative trading from April 1, 2024. The issue first emerged on March 10, when IndusInd Bank disclosed that mark-to-market (MTM) losses in its derivatives book could impact up to 2.35% of its net worth as of December 2024, amounting to nearly Rs 1,600 crore. The news led to a nearly 25% drop in the bank's share price from Rs 900 to Rs 686 apiece. ADVERTISEMENT Following the revelation, the bank engaged PwC to quantify the losses initially detected in October 2024. Later, at the direction of the Reserve Bank of India (RBI), global audit firm Grant Thornton Bharat (GTB) was appointed to conduct a forensic investigation to ensure a thorough and conservative assessment of the losses. (You can now subscribe to our Economic Times WhatsApp channel)
Business Upturn
28-04-2025
- Business
- Business Upturn
IndusInd Bank shares in focus tomorrow as Deputy CEO Arun Khurana resigns with immediate effect
Shares of IndusInd Bank are expected to be in focus when markets open tomorrow after the lender announced the immediate resignation of its Deputy CEO and Executive Director, Arun Khurana. In a regulatory filing, IndusInd Bank disclosed that Arun Khurana has stepped down citing accounting irregularities related to internal derivative trades, which led to an adverse impact on the bank's profit and loss (P&L) statement. Khurana, who also oversaw the Treasury Front Office function, submitted his resignation on April 28, 2025, and it was accepted by the Board the same day. In his resignation letter, Khurana took responsibility for the developments and said he would assist in transitioning his responsibilities to ensure a smooth handover. The bank clarified that the resignation was voluntary and that there were no additional disclosures required under SEBI's Listing Regulations regarding relationships or conflicts. Markets Desk at
Time of India
28-04-2025
- Business
- Time of India
IndusInd Bank deputy CEO Arun Khurana resigns after probe confirms discrepancies in derivatives accounting
IndusInd Bank on Monday said that Arun Khurana, the bank's Whole-time Director (Executive Director) and Deputy CEO, has resigned from his position with immediate effect. #Pahalgam Terrorist Attack India stares at a 'water bomb' threat as it freezes Indus Treaty India readies short, mid & long-term Indus River plans Shehbaz Sharif calls India's stand "worn-out narrative" The decision comes after the private lender on Sunday said it will take action against employees responsible for the lapses and re-align senior management roles to strengthen accountability. In his resignation letter addressed to the Board of Directors, Khurana cited recent developments involving adverse accounting impacts on the bank's profit and loss account. These impacts were linked to incorrect accounting of internal derivative trades under his oversight as part of the Treasury Front Office function. "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," Khurana stated in his letter. The developments follow an independent investigation by a professional firm appointed by the bank's board on March 20, 2025. The firm submitted its report on April 26, confirming that incorrect accounting practices led to an adverse cumulative impact of Rs 1,959.98 crore on the bank's profit and loss account as of March 31, 2025. Live Events The discrepancies mainly arose from incorrect accounting of internal derivative trades, particularly in cases involving early termination. These mistakes resulted in the recording of notional profits and distorted the bank's financials. As a preventive step, the bank had already discontinued all internal derivative trading from April 1, 2024. The issue first emerged on March 10, when IndusInd Bank disclosed that mark-to-market (MTM) losses in its derivatives book could impact up to 2.35% of its net worth as of December 2024, amounting to nearly Rs 1,600 crore. The news led to a nearly 25% drop in the bank's share price from Rs 900 to Rs 686 apiece. Following the revelation, the bank engaged PwC to quantify the losses initially detected in October 2024. Later, at the direction of the Reserve Bank of India (RBI), global audit firm Grant Thornton Bharat (GTB) was appointed to conduct a forensic investigation to ensure a thorough and conservative assessment of the losses.
