Arun Khurana Resigns As IndusInd Bank Deputy CEO Amid Derivatives Controversy

IndusInd Bank today said Arun Khurana has tendered his resignation as Whole-Time Director and Deputy Chief Executive Officer with immediate effect. The decision follows the recent disclosure of significant accounting discrepancies related to internal derivative trades.

In his resignation letter, Khurana acknowledged the developments: "Considering the recent unfortunate developments, wherein the Bank determined an adverse accounting impact on Profit and Loss, on account of incorrect accounting for internal derivative trades, I hereby resign, effective immediately." 

On April 27, IndusInd Bank confirmed that an external investigation had identified ₹19.60 billion of cumulative adverse impact on the bank’s financials as of March 31, 2025, consistent with preliminary estimates disclosed earlier.

The report concluded that the primary cause of the discrepancy was the incorrect accounting of internal derivative trades, particularly regarding early terminations, which led to the booking of notional profits. The findings also assessed the roles and responsibilities of key employees involved in these practices.

In response, the bank's board has initiated measures to hold individuals accountable and is taking steps to realign senior management roles. IndusInd Bank had already ceased internal derivative trading from April 1, 2024, and committed to strengthening its internal controls to prevent such incidents in the future.