Shares of the IndusInd Bank witnessed over 3% decline during the trade on Wednesday. The fall came after the bank’s CEO and MD, Sumant Kathpalia, resigned with immediate effect. The shares of the IndusInd Bank slipped 3.2% to Rs 810.40 apiece on the BSE during the Wednesday’s trading session.
The resignation of Kathpalia came following the matter of derivatives accounting discrepancies came into light, which was first reported in March 2025. Moreover, the bank faced the loss of Rs 1,960 crore for this accounting lapse.
Kathpalia resigned on April 29, 2025. “I undertake moral responsibility, given the various acts of commission/omission that have been brought to my notice. I would request that my resignation be taken on record at the close of working hours today,” said Kathpalia, in his resignation letter.
Meanwhile, India’s share market indices, Sensex and Nifty50, opened with marginal gains on Wednesday, April 30, 2025. The Sensex (index with top 30 firms) surged 82.42 points to open at 80,370.80 on Wednesday. Meanwhile, Nifty50 (index with top 50 firms) was up 6.10 points to open at 24,342.05 points.
RBI Approves Interim Leadership
The Reserve Bank of India (RBI) has approved the interim leadership team, which will discharge the duties, roles, and responsibilities of the CEO of the bank. The RBI sanctioned the creation of a “Committee of Executives” for the bank, which will manage the bank during the transitional period.
The interim leadership team, appointed by RBI, includes Soumitra Sen, head of consumer banking, and Anil Rao, chief administrative officer.
IndusInd bank said in a regulatory filing that Sen and Rao will be in the leadership role till the new CEO is appointed or a maximum period of three months from the date of Kathpalia’s departure, whichever comes first.
