High Stakes, Higher Fallout: Arun Khurana Quits IndusInd Bank After Accounting Shock

IndusInd Bank today said that its Whole-time Director and Deputy CEO, Arun Khurana, has resigned with effect from today, after the bank confirmed major accounting irregularities in the bank's in-house derivatives book.

 

Khurana's resignation comes after an independent investigation detected irregular accounting of internal derivative transactions, specifically early terminations. The investigation, conducted by a professional firm retained by the bank board, found a cumulative net impact of ₹1,959.98 crore on the bank's profit and loss account as of March 31, 2025. The irregularities resulted in premature recognition of notional profits and distorted the financial statements of the bank.

 

In his letter of resignation to the board, Khurana wrote, "In view of the recent unfortunate events, wherein the Bank concluded an adverse accounting effect on P&L, due to misaccounting of internal derivative trades, I, being the Whole Time Director, Deputy CEO and a member of Senior Management of the bank, hereby resign, with effect from today." He also indicated his willingness to help bring about a transition of his duties for a smooth handover.

 

The bank has already suspended all in-house derivative trading since April 1, 2024, as a precautionary measure. Following the revelation, the stock price of IndusInd Bank dropped, and the board has taken steps to rectify accountability and reorganize top management positions. The Reserve Bank of India had also instructed the appointment of an international audit firm to conduct a proper audit of the losses.

 

Source: The Economic Times