IndusInd Bank Shares Fall After CEO Resigns Amid Accounting Controversy

IndusInd Bank 's CEO Sumant Kathpalia resigned on April 30, 2025, taking moral responsibility for problems in the bank’s derivatives accounting. His resignation came shortly after the RBI had only extended his term by one year instead of the requested three. Just before that, Deputy CEO Arun Khurana also stepped down due to similar concerns.

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IndusInd Bank Share Price Drops

Following the resignations, the bank’s shares fell by around 3% in early trading and were quoted at Rs.816.90 on the NSE by 9:20 am.

Accounting Errors Impact Bank’s Net Worth

The bank earlier reported that incorrect accounting of derivative deals would impact its net worth by around Rs.1,979 crore, which is about 2.35% of its net value as of December 2024.

Emkay Global Downgrades IndusInd Bank Stock

Emkay Global downgraded the bank's stock rating from ‘add’ to ‘reduce’. They mentioned that multiple top-level resignations could affect business stability, deposit growth, asset quality, and might lead to further RBI involvement in the bank’s management.

CEO Hiring May Take Time, Business May Suffer

Emkay also warned that finding a new CEO might take 3 to 6 months, affecting business performance and delaying recovery. The risk-to-reward ratio is currently not favorable compared to other banks.

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