After completion of the case study, the students will be able to:
evaluate governance breakdown mechanisms in regulated financial institutions;
analyse the chief executive officer and board responsibilities during a crisis;
compare transparency versus stabilisation response strategies;
understand how regulators influence corporate decisions; and
recommend post-crisis governance reforms.
This case explores how a derivative valuation disclosure at IndusInd Bank escalated into a governance crisis. The revelation triggered a market reaction, regulatory attention from the Reserve Bank of India and internal board-level tensions regarding the appropriate sequencing of transparency and stabilisation measures. At the centre of the crisis lies a leadership dilemma: should the bank immediately pursue radical transparency and restatement, risking short-term market volatility or adopt a regulator-aligned stabilisation-first strategy to mitigate systemic disruption? The case allows students to assess leadership choices, board accountability, regulatory signalling and crisis communication in a banking context.
This study is suitable for Master of Business Administration/Post Graduate Diploma in Management courses in corporate governance, banking and financial regulation, risk management and strategic leadership. Also appropriate for executive education programmes for banking directors, risk officers and regulators.
CSS 1: Accounting and finance.
