IndusInd Bank May Get a New CEO by October: Report
IndusInd Bank is expected to appoint a new CEO within the next six months, replacing the current Chief Executive Officer, Sumant Kathpalia.
New Delhi: IndusInd Bank is expected to appoint a new CEO within the next six months, replacing the current Chief Executive Officer, Sumant Kathpalia. Once the board finalizes potential candidates, the Reserve Bank of India (RBI) will approve the successor, according to a report by NDTV Profit.
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Board’s Decision Expected by October
The IndusInd Bank board is required to submit a shortlist of candidates at least six months before the CEO’s tenure ends. However, it remains unclear whether the list will include only external candidates or if internal contenders will also be considered.
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RBI’s Review and Accountability Exercise
As per the report, the RBI is currently awaiting an accountability review before making a final decision. If any serious accounting lapses are found, the regulator may take further action against those responsible at IndusInd Bank.
Investigation Into Accounting Discrepancies
On Thursday, IndusInd Bank announced the appointment of an independent professional firm to investigate discrepancies in its derivative portfolio.
Last week, the bank disclosed that it had identified accounting discrepancies, potentially impacting 2.35% of its net worth as of December 2024.
The independent firm will:
- Conduct a comprehensive investigation into the root cause of the discrepancies.
- Assess the correctness and impact of the accounting treatment of derivative contracts.
- Ensure compliance with prevailing accounting standards and guidelines.
- Identify any lapses and establish accountability.
RBI Assures Financial Stability of IndusInd Bank
Amid speculation regarding IndusInd Bank’s financial health, the RBI has assured depositors of the bank’s stability, reaffirming confidence in its financial position.
