IndusInd Bank's CEO steps down: What's next?
What's the story
IndusInd Bank's CEO Sumanth Kathpalia has resigned over derivative accounting discrepancies. His resignation comes soon after Deputy CEO Arun Khurana's.
Kathpalia took "moral responsibility" for the issue in his resignation letter saying, "I undertake moral responsibility, given the various acts of commission/ omission that have been brought to my notice."
The bank has received RBI's approval to form a temporary executive committee to handle CEO responsibilities until a permanent successor is appointed.
Interim oversight
Temporary executive committee to oversee bank operations
The temporary executive committee will be headed by Soumitra Sen, head of consumer banking, and Anil Rao, chief administrative officer.
They will handle bank operations under the supervision of an oversight panel headed by IndusInd Bank's board chairman.
The panel also comprises chairs of various committees including audit, compensation, nomination & remuneration, and risk management.
Response
A look at the stock price
IndusInd Bank's shares ended 0.4% lower today on the NSE at ₹833, higher than the 52-week low of ₹606 in March. The bank has a market cap of ₹65,290 crore.