In diffraction grating, at times, there are defective pixels on the focal plane array; this results in horizontal lines of corrupted pixels in some channels. Since only a few such pixels exist, the corruption/noise is sparse. Studies on sparse noise removal from hyperspectral noise are parsimonious. To remove such sparse noise, a prior work exploited the interband spectral correlation along with intraband spatial redundancy to yield a sparse representation in transform domains. We improve upon the prior technique. The intraband spatial redundancy is modeled as a sparse set of transform coefficients and the interband spectral correlation is modeled as a rank deficient matrix. The resulting optimization problem is solved using the split Bregman technique. Comparative experimental results show that our proposed approach is better than the previous one.