Recently, it was claimed in social media and some media reports that Indusind Bank’s CEO and Deputy CEO are going to resign from their post soon. It was also said in these reports that the Reserve Bank of India (RBI) has lost confidence in top officials over an accounting disturbances in the bank.
But now Indusind Bank itself has completely rejected all these news. The bank has clearly stated that all these reports are factually wrong and misleading.
Bank’s statement: “CEO and Deputy CEO’s resignation reports are false”
IndusInd Bank spokesperson issued a statement saying, “
“We want to clarify that the recent media reports that have come on the tenure of the bank’s CEO and Deputy CEO are factually incorrect. The bank strongly denied these reports. The information being spread is completely false and does not display the real situation.”
After this explanation, it has been decided that no official or internal decision has been taken regarding the resignation of high officials of the bank at present.
RBI instructions and Reuters report
On March 21, Reuters in their report quoted sources as saying that the Reserve Bank of India told Indusind Bank that CEO Sumant Katpalia and Deputy CEO Arun Khurrana should leave their posts as soon as the replacement is received and regulatory approval is received.
The report also said that RBI wants a systematic leadership change in the bank so that the depositors remain confident and there is no chaos. According to sources, RBI wants the new leadership to be brought from outside the bank.
However, these reports have not yet been confirmed by RBI or bank.
What is the matter: Indusind Bank’s derivative disturbance
Indusind Bank is the fifth largest private bank in India, whose balance sheet is more than Rs 5.4 lakh crore.
On March 10, the bank made a shocking disclosure that its derivative portfolio had an overwall of 2.35%. This means that the rules fixed in the bank’s derivative trades were not followed, showing its portfolio more than reality.
After this disturbance, the bank immediately appointed external investors and started investigating.
It is worth noting that derivative portfolio is part of the division which is responsible for Deputy CEO Arun Khurana, who is also the head of the bank’s global markets division.
RBI’s response: “Bank’s financial position is stable”
On March 15, the Reserve Bank also broke the silence in the matter and assured the common customers and investors that the financial position of Indusind Bank is completely stable.
RBI said that the bank has enough capital and it is not in a position to face any kind of crisis. Along with this, RBI directed the bank board to fix the accounting disturbance of Rs 2100 crore within March.
The disturbance in the bank’s derivative portfolio is expected to affect its net worth about 2.35%.
