IndusInd Bank to recover ex-CEO's pay, stock jumps 5%
IndusInd Bank shares shot up nearly 5% after reports emerged that the bank has begun the process of clawing back salaries and bonuses from its former CEO Sumant Kathpalia and Deputy CEO Arun Khurana.
This comes after an internal probe found they engaged in incorrect accounting on derivative trades, causing a $230 million loss, which led to both being let go in May 2024.
Clawback could cover over a year of hefty pay
The clawback could cover over a year of hefty pay—Kathpalia's FY25 salary was ₹7.5 crore, Khurana's ₹5 crore.
Both are also under SEBI investigation for alleged insider trading and can't trade stocks until things are cleared up.
IndusInd is tightening its rules with new accountability steps
In response, IndusInd is tightening its rules with new accountability steps and plans for a full organizational overhaul before the next financial year.
Investors seem reassured—the stock is already up 10% this month as the bank works to rebuild trust.