IndusInd Bank Accelerates CEO Hunt Ahead of RBI's June 30 Deadline

IndusInd Bank’s board is working swiftly to propose names for the position of Chief Executive Officer before the Reserve Bank of India’s (RBI) 30th June deadline. This urgency follows the exit of the bank’s former MD & CEO, Sumant Kathpalia, who stepped down after acknowledging responsibility for accounting irregularities in the derivatives segment. 

These discrepancies led to a ₹2,329 crore loss in the fourth quarter of FY25. In addition, Deputy CEO Arun Khurana also resigned, accepting accountability for the same issue.

Temporary Leadership Measures and Oversight

After receiving the RBI’s consent, the bank set up a temporary executive committee to handle day-to-day operations. This committee includes Soumitra Sen, Head of Consumer Banking, and Anil Rao, Chief Administrative Officer. 

Their activities are being supervised by an oversight committee, which is chaired by IndusInd Bank's Chairman, Sunil Mehta. This higher committee includes leaders from the audit, risk management, and remuneration committees, ensuring governance and stability during the leadership transition.

Progress in Selection and Ongoing Regulatory Scrutiny

Chairman Mehta confirmed that the bank is in the advanced phase of its CEO selection and is confident of submitting recommendations well ahead of the RBI's stipulated date. Meanwhile, regulatory concerns persist as SEBI has issued an interim order against five executives, including Kathpalia and Rao, in connection with an insider trading probe. Despite this, Rao continues to serve on the interim committee since the order is not yet final.

Read More: RBI Cut Repo Rate by 0.50%: Eases Policy Stance to Neutral from Accommodative.

IndusInd Bank Share Price Performance 

As of June 06, 2025, at 11:43 AM, IndusInd Bank share price is trading at ₹808.70 per share, reflecting a surge of 0.68% from the previous day's closing price. Over the past month, the stock has declined by 2.78%. The stock's 52-week high stands at ₹1,550 per share, while its low is ₹606 per share.

Conclusion 

IndusInd Bank is navigating a critical leadership transition with urgency and caution. Following high-profile resignations due to accounting lapses, the bank has taken swift interim measures and is actively progressing in appointing a new CEO. With regulatory deadlines and scrutiny in play, the board’s timely and transparent actions will be key to restoring stakeholder confidence and ensuring operational stability.

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