IndusInd Bank Share Price Dips 2% on July 2; Nears CEO Appointment Amid Audit Irregularities

IndusInd Bank is currently in the process of finalising a new Managing Director and CEO following the abrupt resignation of Sumant Kathpalia. According to reports, the shortlist includes three seasoned industry leaders: Rajiv Anand, Deputy Managing Director at Axis Bank; Rahul Shukla, Executive Vice President at HDFC Bank; and Anup Saha, Managing Director at Bajaj Finance.

An Economic Times report suggests that the private sector lender may not consider additional candidates, indicating that the selection process is nearing its final stage.

Rajiv Anand has been listed as the board’s top choice, owing to his strong reputation and extensive experience, a source familiar with the matter told Reuters.

Kathpalia Resignation Amid Accounting Scandal

The leadership crisis was triggered when Sumant Kathpalia resigned on May 1, 2025, citing moral responsibility for accounting discrepancies discovered in the bank’s derivatives portfolio. His resignation was preceded by that of Arun Khurana, the Deputy CEO, who also stepped down with immediate effect.

Financial Irregularities Unearthed

The trouble began in March 2025, when IndusInd Bank disclosed a discrepancy of ₹1,580 crore in its derivatives portfolio. The bank warned that this could impact its net worth by around 2.35% as of December 2024. This announcement came shortly after the Reserve Bank of India (RBI) approved Kathpalia’s reappointment as MD & CEO for only one year—short of the three-year term requested by the board.

Further damage was revealed on May 15, when the bank’s Internal Audit Department identified additional irregularities amounting to ₹1,269 crore. These included ₹674 crore incorrectly recorded as interest income and ₹595 crore of unsubstantiated balances in the “other assets” category, revealed through a whistleblower complaint.

IndusInd Bank Share Price Performance

On July 2, 2025, IndusInd Bank share price opened at ₹875.50, up from its previous close of ₹879.10. At 10:42 AM, the share price of IndusInd Bank was trading at ₹855.35, down by 2.70% on the NSE.

Also Read: IndusInd Bank’s Promoter IIHL Says Ready to Infuse Equity if Required!

Conclusion

IndusInd Bank is under intense scrutiny as it seeks to restore trust and leadership stability. The selection of a new CEO from a pool of highly experienced bankers is expected to play a crucial role in rebuilding investor and customer confidence.

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