IndusInd CEO quits amid RBI scrutiny in accounting lapses

Sumant Kathpalia stepped down as the managing director and chief executive officer of IndusInd Bank with immediate effect amid ongoing investigations into discrepancies in the accounting of its derivatives portfolio.

- Anshika Kayastha & Nikita Prasad

Sumant Kathpalia stepped down as the managing director and chief executive officer of IndusInd Bank with immediate effect amid ongoing investigations into discrepancies in the accounting of its derivatives portfolio. "I wish to submit my resignation from the services of the Bank in relation to the ongoing Derivatives discussion. I undertake moral responsibility, given the various acts of commission and omission that have been brought to my notice," Kathpalia said in his resignation letter, asking the bank to relieve him at the close of working hours on Tuesday. Kathpalia was the head of the bank for five years.

Meanwhile, IndusInd Bank's board, as per provisions of Section 10B(9) of the Banking Regulation Act, 1949, has sought Reserve Bank of India (RBI)'s approval to constitute a 'committee of executives' to discharge the duties, responsibilities and roles of the CEO "for an interim period until a permanent CEO is appointed".