IndusInd Bank Deputy CEO Khurana resigns

Private sector lender IndusInd Bank today informed that its Deputy CEO and Executive Director Arun Khurana has resigned from his position with immediate effect.

“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.

“I would like to offer my assistance, as deemed appropriate, in transitioning my responsibilities to ensure a smooth handover,” he said.

Two external agencies PwC and Grant Thornton had earlier confirmed that after a thorough review, they had found that the bank engaged in irregular internal derivative trade practices, which would have an adverse impact of up to ₹2,000 crore on the bank’s balance sheet.

On Sunday, the lender said Grant Thornton has determined cumulative adverse accounting impact of ₹1,956 crore as on March 31, which is similar to the amount estimated by PwC in an earlier probe.

According to Grant Thornton, which was appointed to assess the root cause of discrepancies found in the lenders derivative book, IndusInd Bank officials conducted incorrect accounting practices in internal derivative trades, especially in case of early termination, which resulted in recording of notional profits. The firm’s exhaustive report also examined the roles and actions of key employees in this context. The bank had said it was taking necessary steps to fix accountability of the persons responsible for these lapses and re-align roles and responsibilities of senior management.

In a recent interview with businessline, Ashok P Hinduja, Chairman of IIHL (IndusInd International Holdings Ltd), promoter of IndusInd Bank, said the promoter group was unhappy with the corporate governance practices at IndusInd Bank. He, however, said that the promoters are ready to infuse fresh capital in the bank if required, even as the lender’s capital remains is strong and above regulatory requirements.

Separately, audit firm E&Y is also assisting IndusInd Bank’s audit department to assess certain business record in the lender’s micro finance book. The bank’s micro loan book stood at ₹32,564 crore as on December end, constituting 9 per cent of overall advances.

Published on April 28, 2025