India’s IndusInd Bank announced the resignation of deputy CEO Arun Khurana on Monday — weeks after the private lender disclosed accounting lapses in its derivatives portfolio. The bank has seen shares fall nearly 8% since March 10 after it first revealed the impact on its net worth from accounting discrepancies.
“I having oversight of the Treasury Front office function, as the whole time director, Deputy CEO and a part of senior management of the bank, hereby resign, effective immediately,” Khurana wrote in a letter to IndusInd Bank’s board that was included in a stock market filing.
The announcement comes mere months after former CFO Gobind Jain stepped down citing personal reasons. Khurana had taken over the role in late January alongside his additional duties as executive director and Deputy CEO.
The country’s fifth-largest private lender (with a balance sheet of $63 million) indicated on Sunday that it would take a $229.56 million hit to its accounts for the recently concluded financial year due to incorrect treatment of derivatives going back several years. An external audit by independent professional firm Grant Thornton indicated that the bank was now facing a 2.27% hit to its net worth.