Representational image of an IndusInd Bank branch
| Photo Credit: Reuters

Shares of IndusInd Bank on Wednesday declined over 3% after its MD and CEO Sumant Kathpalia resigned with immediate effect, taking moral responsibility of accounting lapses in the derivatives portfolio, having financial implication of ₹1,960 crore to the bank.

The stock dropped 3.21% to ₹810.40 on the BSE. At the NSE, shares of the firm declined 3.21% to ₹810.05 apiece.

This comes after the Bank’s Deputy CEO Arun Khurana tendered his resignation on Monday. Its Chief Financial Officer (CFO) Govind Jain had quit in January before the lapses came to light.

Mr. Kathpalia, Managing Director & CEO, by his letter dated April 29, 2025, resigned from services of the bank with effect from close of working hours on April 29, 2025, IndusInd Bank said in a regulatory filing on Tuesday.

“I undertake moral responsibility, given the various acts of commission/omission that have been brought to my notice,” Mr. Kathpalia said in a resignation letter addressed to the board of the bank.

The board has sought approval of the Reserve Bank of India to constitute a ‘Committee of Executives’, to discharge the duties, roles and responsibilities of the Chief Executive Officer (CEO) of the bank, for an interim period until a permanent CEO is appointed by the bank, as per the filing.

Earlier this week, the private sector lender had informed that a bank-appointed external auditor has determined a cumulative adverse accounting impact on profit and loss at ₹1,959.98 crore as on March 31, which is similar to the amount disclosed on April 15.