In a surprising development, IndusInd Bank witnessed a 2.2% rise in its share price on Tuesday, April 29, after the resignation of Deputy CEO Arun Khurana. His exit follows ongoing concerns regarding discrepancies in the bank’s derivatives portfolio, a matter that has recently raised eyebrows in the financial industry.
The lender, already under pressure due to internal accounting issues, saw a spike in investor activity soon after the announcement. At 9:30 AM, IndusInd Bank shares were trading at ₹848.95 on the NSE, marking a noticeable uptick from the previous session.
In his resignation letter, Arun Khurana openly addressed the situation, stating,
“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 hereby resign, effective immediately.”
He added that, being the Whole Time Director, Deputy CEO, and a key member of the senior management with oversight over the Treasury Front Office, he accepts responsibility for the developments and has chosen to step down.
Khurana further assured that he would assist in the smooth transition of his responsibilities, ensuring that day-to-day operations continue without disruption during the leadership change.
This episode comes at a sensitive time for IndusInd Bank. The discrepancies in its internal derivative trades have reportedly impacted its profit and loss (P&L) accounts, prompting the management to take swift action. While the exact financial implications are yet to be fully disclosed, the bank’s proactive stance in dealing with the issue appears to have instilled temporary confidence among investors.
Despite the seriousness of the matter, the positive market reaction suggests that investors may be viewing the resignation as a step toward greater transparency and governance. However, analysts caution that the situation still warrants close monitoring in the days ahead.
Key Highlights:
IndusInd Bank shares up 2.2% on NSE following resignation news
Deputy CEO Arun Khurana resigns due to discrepancies in internal derivatives accounting
Khurana had oversight of Treasury Front Office, accepts responsibility
Investors react positively, possibly due to hopes of improved governance
As the bank navigates through this sensitive phase, all eyes will be on how the leadership handles the aftermath and ensures that similar discrepancies are avoided in the future. The coming weeks will be crucial in restoring full investor confidence and operational stability.
