New Delhi, April 29 -- IndusInd Bank MD and CEO Sumant Kathpalia on Tuesday resigned with immediate effect in the wake of accounting lapses costing Rs.1,960 crore to the lender in the 2024-25 fiscal year. Kathpalia, Managing Director & CEO, has by his letter dated April 29, 2025, resigned from services of the bank with effect from the close of working hours on April 29, 2025, IndusInd Bank said in a regulatory filing.

The lender had in March disclosed accounting discrepancies in its derivatives portfolio, the impact of which roughly equated to an entire quarter's profits. A push for profits and lax controls led to the incorrect accounting practices that lasted for years. The company's shares have dropped 7% since the announcement.

"I un...