IndusInd Bank CEO and MD Sumant Kathpalia’s resignation marks the end of a leadership era at IndusInd Bank, which he led since March 2020
IndusInd Bank on Tuesday announced the resignation of its Managing Director and CEO, Sumant Kathpalia, with immediate effect. In a regulatory filing pursuant to SEBI norms, the bank confirmed Kathpalia resigned via letter dated April 29, 2025, with his departure effective at the close of business on the same day. This comes at the time when the bank and its top executives have come under regulatory scrutiny for accounting lapses in its derivatives portfolio.
In his resignation letter, Sumant Kathpalia cited the ongoing discussions around the bank’s derivative operations as the reason for stepping down. He stated that he was taking moral responsibility for the acts of commission and omission that had come to his notice.
In the interim, the Board has sought the Reserve Bank of India's approval to constitute a “Committee of Executives” under Section 10B (9) of the Banking Regulation Act, 1949, to handle the CEO’s responsibilities until a new appointment is made.
Kathpalia’s resignation marks the end of a leadership era at IndusInd Bank, which he led since March 2020. His decision to step down comes just months after the private lender had received the Reserve Bank of India’s approval to reappoint him as its CEO and MD. Although in September last year, the bank’s board of directors had proposed extending his tenure for three years, the regulator had given its permission only for one year.
Additionally, his resignation comes just a day after IndusInd Bank’s Deputy CEO Arun Khurana stepped down from his position. Khurana was responsible for the treasury front office function of the bank.
“Considering the recent unfortunate development, wherein the bank determined an adverse accounting impact on P&L, on account of incorrect accounting for internal derivatives 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 addressed to the bank’s board.