IndusInd Bank To Submit CEO Pick To RBI By June 30

IndusInd Bank said its search for a new chief executive is in the final stages and that it will submit its recommendation to the Reserve Bank of India before the June 30 deadline. The bank is looking to restore leadership stability after the resignation of CEO Sumanth Kathpalia in April following accounting discrepancies in its derivatives portfolio.

Addressing analysts post-earnings, the management said the board is committed to identifying a leader with strong ethics, the right competencies, and the ability to scale the business sustainably. "This will provide strong leadership and management stability at the bank," it said.

Kathpalia stepped down, citing “moral responsibility” after an internal review flagged issues with internal trades in the derivatives book. His resignation was followed by that of Deputy CEO Arun Khurana. Since then, the RBI has approved the formation of a committee of executives to handle CEO responsibilities in the interim.

The board also highlighted efforts to instill a cultural shift across the bank focused on high standards of governance and ethics. “We want to build an environment of open and honest communication with all stakeholders, prioritising long-term sustainability over short-term achievements,” the management said.