MUMBAI/BENGALURU April 28 (Reuters) -

India's IndusInd Bank on Monday announced the

resignation of deputy CEO Arun Khurana, weeks after the private

lender disclosed

accounting lapses

in its derivatives portfolio that triggered a rout in its

shares

.

In light of the recent

accounting issues related to internal derivative trades

, "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.

IndusInd, India's fifth-largest private lender with a

balance sheet of $63 billion,

said on Sunday

it would take a $229.56 million hit to its accounts for the

financial year ended March 31, 2025 because of the incorrect

treatment of derivatives going back several years.

Based on the findings of an external agency's probe,

IndusInd has estimated an impact of 2.27% on its net worth as of

December 2024.

Khurana headed the global markets division of the bank,

which included the derivatives portfolio.

IndusInd shares have fallen nearly 8% since March 10,

when the lender first disclosed the impact on its net worth from

the discrepancies.

Last week, IndusInd named Santosh Kumar as its deputy

CFO. Kumar will head the finance and accounts functions till

IndusInd appoints a full-time CFO.

The Reserve Bank of India had

urged

CEO Sumant Kathpalia and Khurana to step down following the

accounting lapses, as soon as replacements were found and

approved by the central bank, Reuters reported last month.

The bank is due to report earnings for the full

financial year before May 15, but is yet to disclose the date

for the release.

(Reporting by Siddhi Nayak in Mumbai and Ananta Agarwal in

Bengaluru; Editing by Anil D'Silva)