Sumant Kathpalia, the Managing Director and CEO of IndusInd Bank, has resigned from his position with effect from the close of working hours today, the bank announced in a stock exchange filing.
Kathpalia, who served as the bank’s CEO for five years, cited “moral responsibility” linked to the ongoing discussions around derivative transactions as the reason for his resignation. In his letter addressed to the board, Kathpalia wrote:
“I undertake moral responsibility, given the various acts of commission/omission that have been brought to my notice.”
He expressed gratitude towards the regulators, the board, his management team, and the staff for their support during his tenure.
Following his resignation, the board of IndusInd Bank has sought approval from the Reserve Bank of India (RBI) to constitute a “Committee of Executives” that will temporarily discharge the CEO’s duties until a permanent successor is appointed.
The board meeting to discuss this development commenced at 4:42 p.m. and concluded at 5:14 p.m. IST today.
IndusInd Bank’s official communication, along with Kathpalia’s resignation letter, has been made available on its website.
