New Delhi: IndusInd Bank is expected to have a new CEO by October, as the board moves to finalize a successor to Sumant Kathpalia. The process of shortlisting potential candidates is underway, and once the names are submitted, the Reserve Bank of India (RBI) will take the final call on approving the new leadership, according to a report by NDTV Profit.
It remains uncertain whether the shortlist will comprise only external candidates or if internal executives will also be considered for the top position. As per standard regulatory procedure, a bank's board must submit a list of potential CEO candidates to the RBI at least six months before the incumbent’s tenure concludes.
RBI Awaits Accountability Exercise
Sources cited in the report suggest that the RBI is waiting for the completion of an accountability review before proceeding further. If significant accounting irregularities are found at IndusInd Bank, the regulator may take strict action against those responsible.
Investigation into Derivative Discrepancies
IndusInd Bank recently disclosed discrepancies in its derivative portfolio, which could impact about 2.35 per cent of its net worth as of December 2024. In response, the bank has appointed an independent professional firm to conduct a thorough investigation into the matter.
The independent firm will examine the root cause of the discrepancies, assess the correctness of the accounting treatment of derivative contracts, and ensure compliance with prevailing accounting standards and guidelines. The bank's Board of Directors confirmed this move through an official filing with the stock exchanges.
RBI Assures Depositors of Stability
Amid speculation regarding the financial health of IndusInd Bank, the RBI has reassured depositors about the bank’s stability. The central bank’s statement aims to mitigate concerns and restore confidence among stakeholders following recent reports about the financial discrepancies.
As the accountability review progresses and the CEO selection process unfolds, market watchers will be keenly observing the developments at IndusInd Bank in the coming months.
