Indian private lender IndusInd Bank said on Tuesday CEO Sumant Kathpalia has resigned with immediate effect, marking a management shakeup following a derivatives accounting lapse that has hit the bank's net worth.

Shares of IndusInd Bank ended flat on Wednesday, a day after its MD and CEO Sumant Kathpalia resigned with immediate effect, taking moral responsibility for accounting lapses in the derivatives portfolio,

The Reserve Bank of India approved IndusInd Bank's request to form a committee of executives following the resignation of CEO Sumant Kathpalia. The committee will oversee operations until a new CEO is appointed or within three months.