- 30 Apr 2025
- ICICIdirect Research
INDUSIND BANK CEO SUMANT KATHPALIA RESIGNED TAKING MORAL RESPONSIBILITY FOR THE RS 1960 CRORE LOSS
INDUSINDBK - 784 Change: 3.85 (0.49 %)News: IndusInd Bank CEO Sumant Kathpalia resigned, taking moral responsibility for the ₹1,960 crore loss arising from mis-accounted internal derivative trades, just a day after deputy CEO Arun Khurana’s exit. His resignation follows Grant Thornton’s report highlighting lapses and comes ahead of the bank’s March-quarter results. Bank has sought RBI approval to form an interim CEO committee.
View: With both the CEO and deputy CEO stepping down in quick succession—an outcome that was largely anticipatory— focus is now on how swiftly and credibly the bank restores leadership stability. Timely clarity on the appointment of a permanent CEO and visible steps to strengthen internal governance will be crucial for regaining market confidence and sustaining strategic direction.
Impact: Positive