IndusInd Bank Share Price: Private Lender Stock Falls 3% As CEO Sumant Kathpalia Steps Down

The shares of IndusInd bank declined more than 3% on Wednesday as the firm's Managing Director and CEO Sumant Kathpalia resigned with immediate effect.

Why Did Sumant Kathpalia Resign?

Sumant Kathpalia resigned as he took moral responsibility for accounting lapses in the derivatives portfolio which had a financial implication worth Rs 1,960 crore to the bank.

This move comes after the bank's Deputy CEO Arun Khurana tendered his resignation on Monday.

Additionally, its Chief Financial Officer (CFO) Govind Jain had quit in January before the lapses came to light.

Kathpalia in his letter dated April 29, 2025, stated that he had resigned from the bank with effect from the close of working hours on April 29, 2025, the bank said in a regulatory filing.

"I undertake moral responsibility, given the various acts of commission/omission that have been brought to my notice," he wrote in his resignation letter to the board of the bank.

After this, the board of the bank had sought approval from the Reserve Bank of India (RBI) to constitute a 'Committee of Executives', to discharge the duties, roles and responsibilities of the CEO of the bank, for an interim period until a permanent CEO is appointed by the bank, the filing said.

The central bank has also approved the formation of the 'Committee of Executives' to oversee the bank's operations.

Who All Are The Members Of The Committee?

The 'Committee of Executives' will comprise of "Mr. Soumitra Sen (Head – Consumer Banking) and Mr. Anil
Rao (Chief Administrative Officer) as members of the said Committee, to oversee the operations of the Bank under the oversight and guidance of an oversight committee of the Board. The Oversight Committee shall be chaired by the Chairman of the Board and shall
comprise the chairs of Audit Committee, the Compensation and Nomination & Remuneration Committee and the Risk Management Committee, as members," the bank said in a regulatory filing.

It added that the bank is taking all necessary steps to ensure the stability and continuity of its operations wile also maintaining high standards of governance.

IndusInd Bank Stock Price Today

The company's stock dropped 3.21% to Rs 810.40 per share on the BSE. On the NSE, the shares of the firm fell 3.21% to Rs 810.05 apiece.

Also Read: Indian Authorities Eye UPI Fee To Bolster Digital Payments