The Reserve Bank of India has cleared IndusInd Bank’s proposal to form a committee of executives to handle the responsibilities of managing director and chief executive officer, following Sumant Kathpalia’s resignation on Tuesday. The bank disclosed the RBI's approval in an exchange filing early Wednesday.

The interim committee will include Soumitra Sen, head of consumer banking, and Anil Rao, chief administrative officer. They will oversee the bank’s day-to-day operations under the guidance of a board-level oversight committee chaired by the board’s chairman. This oversight panel also includes the heads of the audit, compensation and nomination and remuneration, and risk management committees.

The executive committee will manage the bank for a maximum of three months or until a new MD and CEO is appointed, whichever is earlier. “The bank is taking all necessary steps to ensure stability and continuity of its operations while maintaining high standards of governance,” it said.

Kathpalia resigned citing "moral responsibility" for discrepancies found in the bank’s derivatives portfolio. His exit came just a day after Arun Khurana stepped down as deputy CEO in the wake of the scandal, which is expected to cost the bank ₹19.60 billion. On 17 April, the bank had relieved Khurana of his additional role as chief financial officer, a charge he had held since January.