Arun Khurana, IndusInd Bank’s deputy CEO, resigned with immediate effect following the discovery of a Rs 1,960 crore accounting discrepancy linked to internal derivative trades
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Arun Khurana, Deputy Chief Executive Officer and Whole-Time Director at IndusInd Bank, has tendered his resignation with immediate effect, following the discovery of significant accounting lapses within the bank’s treasury operations, which have resulted in a Rs 1,960 crore impact on its profit and loss accounts for the fiscal year ending March 2025.
Khurana, who had oversight of the bank’s Treasury Front Office function, cited the recent developments as the reason for stepping down. In his resignation letter addressed to the bank’s board on Monday, he stated: “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.”
IndusInd Bank formally acknowledged the resignation in a stock exchange filing made on Monday evening, confirming that Khurana’s departure was effective from April 28 2025.
As per PTI, the accounting discrepancies originated from the internal derivative portfolio and were first brought to light earlier this month. The bank had appointed an independent external auditor to conduct a detailed investigation, which concluded that the cumulative adverse impact on profit and loss stands at Rs 1,959.98 crore as of March 31. This figure aligns with earlier disclosures made by the bank on April 15.
In addition, a separate report by another external agency, the findings of which were disclosed on April 15, noted that the derivative portfolio lapses would lead to a negative effect of Rs 1,979 crore on the bank’s net worth. The bank estimated that this equates to an adverse impact of approximately 2.27 per cent post-tax, as measured against its net worth in December 2024.
Khurana has assured the board of his cooperation during the transition process and expressed gratitude for the opportunities afforded to him throughout his tenure at the institution. “Lastly, I would like to take this opportunity to thank and appreciate the Board in believing and entrusting me with responsibilities through my career with the Bank, and I wish the Bank all the best for the future,” his letter added.
The accounting irregularities have come as a significant blow to the private sector lender, raising concerns over internal controls and governance practices. While the bank has not indicated any further leadership changes at present, regulatory scrutiny is expected to intensify in the coming weeks as the implications of the lapse are fully assessed.
IndusInd Bank has not yet released detailed findings from the audit reports but has committed to implementing measures to prevent recurrence of such discrepancies in the future.
(With inputs from PTI)
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