RBI forms panel to manage IndusInd Bank

New Delhi

The Reserve Bank of India (RBI) has allowed IndusInd Bank to form a temporary executive committee. This group will take care of the bank’s daily work until a new Chief Executive Officer (CEO) is chosen. This decision came after the bank’s CEO and Managing Director, Sumant Kathpalia, stepped down. His exit followed problems in how the bank handled some accounting related to derivatives, which caused financial losses.

In an official statement, the bank said two top officials—Soumitra Sen and Anil Rao—will manage daily operations. They will report to a special Oversight Committee. This committee includes leaders from the bank’s board, such as the heads of the audit, risk, and compensation committees. The Oversight Committee will guide the executive committee for up to three months or until a new CEO takes charge, whichever happens first.

Deputy CEO Arun Khurana also resigned. The bank had hired a professional audit firm to investigate the issue. The audit found that mistakes in accounting for internal derivative trades led to an overall loss of nearly ₹1,960 crore as of March 31, 2025. The problem was first shared by the bank on March 10.

RBI then asked the bank to appoint global audit firm Grant Thornton Bharat to conduct a deeper probe. The firm found that early closures of trades created fake profits on paper, which caused the issue. IndusInd Bank has promised to maintain good governance and business stability.