New Delhi, March 23 (IANS) IndusInd Bank on Sunday denied media reports suggesting that its Chief Executive Officer (CEO) Sumant Kathpalia may be replaced in the next six months. The bank issued a statement calling such claims factually incorrect and misleading. Earlier reports suggested that IndusInd Bank's board would need to finalise a new CEO by October and submit potential names to the Reserve Bank of India (RBI) for approval. However, the bank has dismissed these claims, stating that the information circulating in the media does not reflect the true situation.

"We would like to clarify that the recent media reports regarding the tenure of the Bank’s CEO and Deputy CEO are factually incorrect," the bank said. The report also mentioned that the RBI was awaiting the completion of an accountability exercise before taking any action on the matter. This comes amid concerns over discrepancies in the bank’s derivatives portfolio. Last week, IndusInd Bank disclosed that it had identified accounting issues in its derivatives transactions, which could impact around 2.35 per cent of its net worth as of December 2024.

Following this, the bank appointed an independent professional firm to conduct a detailed investigation to assess the correctness of the accounting treatment. This firm will look into the reasons behind the discrepancies, assess the accuracy of the accounting treatment of the derivative contracts, and determine if any lapses occurred. The RBI is waiting for this investigation to be completed before taking further action. If any serious accounting errors are found, the regulator will hold those responsible accountable.

However, the RBI has assured depositors of IndusInd Bank’s financial stability. The central bank’s reassurance aims to address speculation about the bank’s financial health following reports of accounting discrepancies. The bank continues to focus on resolving the derivative discrepancies while maintaining transparency with regulators and stakeholders. The share price of the private lender was at Rs 689 on the National Stock Exchange (NSE) on Friday.

/IANS