IndusInd Bank announced on Monday that Arun Khurana, the bank’s Deputy CEO and Executive Director, has resigned immediately. This comes after the bank revealed that there were serious mistakes in how it recorded certain financial trades, which affected the bank’s profits.
Khurana, in his resignation letter to the Board of Directors, explained that the bank had found problems with how some internal derivative trades were handled under his supervision. These mistakes resulted in a negative impact on the bank’s profit and loss statement. He stated that because of these issues, he was resigning from his position.
The problems were first discovered during an independent investigation conducted by a professional firm, which the bank’s board hired on March 20, 2025. The firm’s report, released on April 26, 2025, confirmed that the accounting errors caused a loss of nearly Rs 1,960 crore for the bank as of March 31, 2025. The main issue was with how certain internal derivative trades were accounted for, especially when they were ended early, leading to false profits being recorded.
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As a precaution, the bank stopped all internal derivative trading starting April 1, 2024.
The issue was first revealed on March 10, when IndusInd Bank warned that losses from its derivative trades could reduce its net worth by up to 2.35%, or nearly Rs 1,600 crore, by the end of 2024. This news caused the bank’s stock price to drop by nearly 25%, from Rs 900 to Rs 686.
After this, the bank asked PwC to help assess the losses, and later, at the request of the Reserve Bank of India (RBI), the global audit firm Grant Thornton Bharat was hired to carry out a detailed investigation into the issue.
