Mumbai — IndusInd Bank announced on Sunday that it will absorb a ₹1,959.98 crore loss in its fourth-quarter earnings, following the discovery of incorrect accounting for internal derivative trades. The disclosure was accompanied by the immediate resignation of Deputy CEO and Whole Time Director, Rahul Khurana, who oversaw the bank’s Treasury Front Office operations.
In his resignation letter, 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.”
The developments follow an independent investigation commissioned by the bank’s board on March 20, 2025. A professional services firm, appointed to conduct the review, submitted its findings on April 26, confirming that incorrect accounting practices had caused a cumulative adverse impact of nearly ₹1,960 crore on IndusInd’s profit and loss account as of March 31, 2025.
In its statement, the bank emphasized that the full financial impact will be recognized in its March quarter results, and that it has initiated disciplinary action against individuals found responsible. IndusInd also outlined plans to strengthen governance by realigning roles and enhancing accountability frameworks.
“The bank remains financially robust, with strong capital buffers and asset quality, and is committed to adhering to the highest standards of corporate governance,” it said.
The accounting lapse comes at a time when Indian regulators are placing increased emphasis on financial disclosure and internal controls, particularly within the banking sector. IndusInd’s swift acknowledgment and corrective actions appear designed to limit reputational damage ahead of its forthcoming earnings announcement.
Further details on the impact to operations and management reshuffles are expected to be disclosed when the bank reports its fourth-quarter and full-year results in the coming days.
An email seeking further comment from the bank’s spokesperson remained unanswered as of press time.
