IndusInd Bank’s accounting lapses: Deputy CEO Arun Khurana resigns
The private sector lender had informed that a bank-appointed external auditor has determined a cumulative adverse accounting impact on P&L at Rs 1,959.98 crore as on March 31, which is similar to the amount disclosed on April 15
Mumbai: IndusInd Bank’s Deputy CEO Arun Khurana, who was overseeing the treasury front office function of the bank, has resigned in the wake of accounting lapses costing Rs 1,960 crore in the fiscal ended March 2025 to the lender.
“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,” said Khurana in his resignation letter sent to the bank’s board on Monday.
IndusInd Bank, in a stock exchange filing on Monday evening, said Khurana’s resignation was effective April 28, 2025.
Earlier, the private sector lender had informed that a bank-appointed external auditor has determined a cumulative adverse accounting impact on P&L at Rs 1,959.98 crore as on March 31, which is similar to the amount disclosed on April 15.
Khurana has offered his assistance, as deemed appropriate, in transitioning his responsibilities to ensure a smooth handover.
“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 resignation letter said.
On April 15, IndusInd Bank disclosed the basis report of another external agency that accounting lapses in the derivative portfolio will have a negative impact of Rs 1,979 crore on its net worth.
The bank has assessed an adverse impact (on a post-tax basis) of 2.27 per cent to its net worth as of December 2024 on account of discrepancies relating to derivative deals.
The private sector lender reported last month the accounting lapses in the derivative portfolio, estimated to have an adverse impact of approximately 2.35 per cent of the bank’s net worth as of December 2024.
