RBI Approves Executive Committee To Oversee IndusInd Bank Operations

New Delhi: The Reserve Bank of India (RBI) has licensed the charter of an period in-between committee to supervise the operations of IndusInd Bank, which can discharge the tasks, roles and duties of the executive govt officer (CEO) of the financial institution for an period in-between length till an everlasting CEO is appointed, the financial institution mentioned on Wednesday. 

The transfer comes after IndusInd Bank’s Managing Director and CEO Sumant Kathpalia resigned from his submit in connections with the derivatives accounting lapse that has eroded the personal sector financial institution’s internet value.

In a inventory change submitting, the financial institution knowledgeable that the committee, comprising Soumitra Sen (Head–Consumer Banking) and Anil Rao (Chief Administrative Officer), will set up the financial institution’s daily affairs underneath the supervision of an Oversight Committee of the Board.

This Oversight Committee might be chaired via the Chairman of the Board and can come with the chairs of the Audit Committee, the Compensation and Nomination and Remuneration Committee, and the Risk Management Committee.

“Based on the RBI approval, the Board has constituted such ‘Committee of Executives’ to oversee the operations of the Bank, under the oversight and guidance of the Oversight Committee of the Board till a new MD and CEO of the Bank assumes charge or a period of 3 months from the date of relieving the incumbent MD and CEO, whichever is earlier,” in keeping with the change submitting via the financial institution.

The financial institution mentioned it’s taking all important steps to verify steadiness and continuity of its operations whilst “maintaining high standards of governance”.

The inventory of IndusInd Bank fell within the early business on Wednesday.

The financial institution’s Deputy CEO Arun Khurana has additionally give up after accounting discrepancies had been unearthed within the financial institution’s derivatives portfolio via an impartial audit.

The findings of the investigation performed via a certified company, appointed via the financial institution’s board, had been submitted on April 26. The audit record showed that mistaken accounting practices ended in an opposed cumulative have an effect on of Rs 1,959.98 crore at the financial institution’s benefit and loss account as of March 31, 2025.

The factor first got here to mild on March 10, when IndusInd Bank disclosed that mark-to-market (MTM) losses in its derivatives e-book may just have an effect on as much as 2.35 consistent with cent of its internet value as of December 2024 because of discrepancies in its by-product accounts discovered right through an interior evaluate. The loss in internet value labored out to round Rs 1,600 crore.

The RBI issued a path to the financial institution to nominate international audit company Grant Thornton Bharat to habits a forensic investigation to verify a correct review of the losses.

According to the Grant Thornton investigation, mistaken accounting of interior by-product trades via the financial institution, specifically within the instances of early termination, ended in notional income, which ended in accounting discrepancies.