IndusInd Bank Share Price Today: Stock Up 2% As Deputy CEO Arun Khurana Resigns Amid Derivatives Portfolio Discrepancies

IndusInd Bank's stock rose 2% on Monday, despite the bank reporting the resignation of Deputy CEO Arun Khurana. His departure follows internal probes into the discrepancies in the bank's derivatives portfolio.

"We hereby inform that Mr. Arun Khurana, Whole-time Director (Executive Director) & Dy. CEO, Key Managerial Personnel of the Bank, has by his letter dated April 28, 2025, resigned with immediate effect” as per exchange filing.

Arun Khurana Steps Down

Arun Khurana, Deputy CEO, has resigned after reports of irregularities in some derivative transactions handled by the bank. Sources indicate the discrepancies are with respect to how some trades were recorded and handled, which raises issues of compliance and risk management practices.

“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” as per exchange filing Arun mentioned in his resignation letter. 

The bank refused to reveal the entire details but informed that it is working in compliance with the regulatory bodies. The internal investigation was formally initiated to determine the size of the problem.

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Indusland Bank: Share Price Moves Higher

Ignoring the news, the shares of IndusInd Bank gained 2% to Rs 1,445 on the Bombay Stock Exchange (BSE) in Monday's trading. Investors were quoted by analysts as having been relieved that the bank responded promptly to the problem and accepted Khurana's resignation.

Market analysts feel that since the problem appears to be contained and the management is acting early to correct the situation, investor sentiment has not been severely rattled.

What's Next for IndusInd Bank?

The bank has promised investors that it has robust internal controls in place and that the discrepancies are narrow in scope. IndusInd Bank also indicated that it will tighten its risk management procedures and examine its derivatives business.

In addition, Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) are said to be closely monitoring the events. Any regulatory report could affect the future operations of the bank if stronger measures are suggested.

While Arun Khurana’s sudden resignation raised questions, IndusInd Bank’s quick response has helped limit the immediate damage. However, investors will closely watch further disclosures and regulatory updates in the coming weeks to assess the full impact on the bank’s reputation and operations.