RBI to Push Board Changes at IndusInd Bank After Hedging Scandal

• RBI may urge IndusInd Bank to replace some directors following a hedging scandal and accounting discrepancy.
• The bank uncovered a ₹1,500 crore accounting discrepancy in its foreign-currency hedging portfolio in March 2025.
• Multiple resignations, including CEO Sumant Kathpalia and head of treasury Siddharth Banerjee, have occurred.
• RBI's inspection reports highlighted concerns over the bank's succession planning and vacant key positions.
• The bank struggled to find replacements for top executives, leading to delays and operational gaps.

Key Questions Answered

Why is RBI pushing for changes on IndusInd Bank's Board?

The RBI may encourage IndusInd Bank to replace some directors. This comes after a hedging scandal and accounting discrepancies led to multiple resignations, including the CEO.

What was the ₹1,500 crore accounting discrepancy at IndusInd Bank?

IndusInd Bank disclosed alleged financial irregularities worth ₹3,000 crore. This involved its positions in the derivatives market, write-off of certain derivative trades, and mis-accounting.

How did poor succession planning impact IndusInd Bank's leadership?

IndusInd Bank's governance score dropped 17 percent, from 74 in 2024 to 61 in 2025.