IndusInd Bank Shares Plunge Following Management Overhaul

MUMBAI (Romero.my.id) - Shares of India's fifth-biggest private bank, IndusInd Bank, dropped on Wednesday. This occurred one day after its CEO stepped down due to an error in derivatives accounting. The leadership has now been handed over to a group of senior executives.

The stock commenced trading almost 3% down. It has declined by 13% for the year-to-date and has decreased by an additional 9% after the disclosure of accounting irregularities on March 10.

The CEO of IndusInd Bank, Sumant Kathpalia, stepped down, citing "moral responsibility" for previous errors in derivative accounting processes. This issue necessitates the bank to absorb a $230 million charge in their fiscal year 2024-25 financial statements.

Kathpalia's departure followed the resignation of his deputy, Arun Khurana, by just one day.

Until a new chief executive is named, the bank’s retail lending head Soumitra Sen and Chief Administrative Officer Anil Rao will manage the institution’s operations with guidance from the board.

(Siddhi Nayak and Ira Dugal reported; Edited by Rashmi Aich)