IndusInd Bank is at an advanced stage in the process of selecting its next managing director and chief executive officer and will submit its recommendation to the Reserve Bank of India ahead of the June 30 deadline, the private lender said during its Q4 earnings call on Wednesday.
“The Board is confident that recommendations will be submitted to the RBI well in advance of the timeline,” the bank said, adding that this would help ensure management continuity and stability.
The RBI had advised the bank to submit its proposal for the appointment of a new CEO by June 30, 2025, following the resignation of Sumant Kathpalia in April. Kathpalia stepped down citing moral responsibility amid the ongoing controversy related to discrepancies in the bank’s derivatives portfolio transactions..
Kathpalia had stepped down amid scrutiny around the bank’s legacy derivatives portfolio, saying he undertook "moral responsibility" for acts of commission and omission brought to his notice.
Also Read: IndusInd Bank Q4 Results: Net loss of ₹2,328 crore a first in 20 years as accounting issues, MFI stress weigh
Until a new CEO is appointed, a Committee of Executives (CoE), with members having over 30 years of experience individually, will manage day-to-day operations. Their work will be overseen by an Oversight Committee of the Board.
This leadership update comes on a day when IndusInd Bank also reported a net loss of ₹2,328 crore for Q4 FY25—its first quarterly loss in nearly two decades—on account of derivative accounting issues and stress in its microfinance loan book.
“The Board is confident that recommendations will be submitted to the RBI well in advance of the timeline,” the bank said, adding that this would help ensure management continuity and stability.
The RBI had advised the bank to submit its proposal for the appointment of a new CEO by June 30, 2025, following the resignation of Sumant Kathpalia in April. Kathpalia stepped down citing moral responsibility amid the ongoing controversy related to discrepancies in the bank’s derivatives portfolio transactions..
Kathpalia had stepped down amid scrutiny around the bank’s legacy derivatives portfolio, saying he undertook "moral responsibility" for acts of commission and omission brought to his notice.
Also Read: IndusInd Bank Q4 Results: Net loss of ₹2,328 crore a first in 20 years as accounting issues, MFI stress weigh
Until a new CEO is appointed, a Committee of Executives (CoE), with members having over 30 years of experience individually, will manage day-to-day operations. Their work will be overseen by an Oversight Committee of the Board.
This leadership update comes on a day when IndusInd Bank also reported a net loss of ₹2,328 crore for Q4 FY25—its first quarterly loss in nearly two decades—on account of derivative accounting issues and stress in its microfinance loan book.
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