By Siddhi Nayak, Nandan Mandayam and Nishit Navin (Reuters) -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.

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.

IndusInd Bank shares are under scrutiny following the resignation of CEO Sumanth Kathpalia amid derivative accounting discrepancies, prompting the formation of a new committee.