IndusInd Bank's deputy CEO Arun Khurana quits over accounting lapses

Arun Khurana, deputy chief executive officer of IndusInd Bank, has resigned with immediate effect, taking responsibility for the loss incurred by the bank due to accounting lapses that led to close to Rs 2,000 crore of loss.

 

“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,” Khurana said in his resignation letter dated today.

 

On Sunday, the private sector lender IndusInd Bank disclosed to the exchanges that independent professional firm Grant Thornton, which was appointed by its board to find out the root cause behind the discrepancy in the derivative portfolio, among other things, has identified incorrect accounting of internal derivative trades by the bank, resulting in a loss of Rs 1,959.98 crore. The report also examined the roles and actions of key employees in this context and said the bank’s board is taking necessary steps to fix accountability of the persons responsible for these lapses and re-align roles and responsibilities of senior management.

 

 

This is the second high-profile exit from the bank in 2025.

 

In January, months before the loss and the accounting lapses came to light, Govind Jain, chief financial officer and a key managerial person, resigned to pursue other opportunities. Deputy CEO Khurana was handed the additional charge as the CFO of the bank with effect from January 21.

 

Earlier this month, the bank named Santosh Kumar as its deputy CFO, with effect from April 18.

 

Khurana joined the bank in November 2021 as head of the Global Markets Group. He was earlier with the Royal Bank of Scotland (RBS), Singapore, as the regional head of corporate solutions for the Asia Pacific region.

 

In March, the Reserve Bank of India extended the term of the current MD & CEO Sumant Kathpalia for only one year, despite the board approving a three-year term. The bank will have to start the process of finding a successor to Kathpalia, whose term will end in March 2026.