IndusInd Bank , one of India's leading private sector banks, is navigating through turbulent waters as it grapples with a significant accounting discrepancy and a high-profile resignation. The bank is expected to report a substantial loss in the fourth quarter of the fiscal year 2024, primarily due to a one-time charge related to derivative losses.

Potential Q4 FY2024 Loss

According to recent reports, IndusInd Bank may post a net loss ranging between ₹300.00 crore to ₹600.00 crore for Q4 FY2024. This projected loss is largely attributed to a one-time charge of ₹1,959.00 crore, stemming from derivative losses. The bank has confirmed that it will fully absorb this loss, following an investigation into accounting irregularities.

Operational Performance and Asset Quality

Analysts anticipate a subdued operational performance for the bank in the coming quarter. There are concerns about potential pressure on asset quality and credit costs, which could further impact the bank's financial health.

Key Executive Resignation

In a significant development disclosed through a regulatory filing dated April 28, 2025, Mr. Arun Khurana, the Whole-time Director (Executive Director) & Deputy CEO of IndusInd Bank, has tendered his resignation with immediate effect. The resignation comes in the wake of the recent accounting issues faced by the bank.

In his resignation letter, Mr. Khurana stated:

"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."

Implications and Future Outlook

The combination of the expected financial loss and the resignation of a key executive signals a challenging period for IndusInd Bank. The bank's management will need to address these issues promptly to restore investor confidence and maintain its market position.

As the situation unfolds, stakeholders will be closely watching the bank's next steps in addressing the accounting discrepancies and strengthening its internal controls. The upcoming quarterly results will be crucial in providing a clearer picture of the bank's financial standing and its strategies to navigate through these challenges.

IndusInd Bank's ability to overcome these hurdles and its approach to preventing similar issues in the future will be critical in shaping its path forward in the competitive banking sector.

IndusInd Bank , one of India's leading private sector banks, has announced a significant change in its top leadership. Arun Khurana, the bank's Deputy Chief Executive Officer and Whole-time Director, has tendered his resignation with immediate effect, as disclosed in a regulatory filing on April 28, 2025.

Resignation Details

The bank informed the stock exchanges that Mr. Khurana, who also held the position of Executive Director and was a Key Managerial Personnel, submitted his resignation letter on April 28, 2025. The board of directors convened a meeting on the same day to address this development:

• Meeting commencement: 7:42 p.m. (IST)
• Meeting conclusion: 8:04 p.m. (IST)

Reasons for Departure

In his resignation letter, Mr. Khurana cited "recent unfortunate developments" as the primary reason for his departure. Specifically, he mentioned:

• An adverse accounting impact on the bank's profit and loss statement
• Incorrect accounting for internal derivative trades

As the overseer of the Treasury Front office function, Mr. Khurana took responsibility for this issue and decided to step down from his roles.

Impact on Bank Operations

The sudden resignation of a key executive like the Deputy CEO is likely to have significant implications for IndusInd Bank's operations and governance. As of now, the bank has not announced:

• Succession plans
• Interim arrangements to fill the vacancy

Regulatory Compliance

IndusInd Bank's disclosure of this resignation complies with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank has provided the necessary details as required by the regulatory framework, including:

• Reason for the change
• Effective date of cessation
• Other relevant information

Looking Ahead

As IndusInd Bank navigates through this transition, stakeholders will be keenly watching how the bank:

1. Addresses the accounting concerns mentioned in Mr. Khurana's resignation letter
2. Plans to strengthen its internal controls and financial reporting processes

The bank's ability to manage this leadership change and address any underlying issues will be crucial for maintaining investor confidence and ensuring the continued stability of its operations in the competitive Indian banking sector.