IndusInd Bank may see a new CEO by October, replacing Sumant Kathpalia: Report
The board will need to come up with replacement by October, adding that it is unclear if only external names will form part of the shortlist or if any internal candidates will be considered
New Delhi: IndusInd Bank may see a new CEO, replacing Sumant Kathpalia, in six months and once the potential names are submitted to the Reserve Bank of India (RBI), the Central Bank will finalise Kathpalia’s successor.
The board will need to come up with replacement by October, according to a report by NDTV Profit, adding that it is unclear if only external names will form part of the shortlist or if any internal candidates will be considered. In a normal course, a bank’s board must submit potential CEO names to the regulator at least six months before the incumbent’s tenure ends.
According to the report, citing sources, the RBI is awaiting an accountability exercise to be completed before taking action. In case any serious accounting lapses are found at IndusInd Bank, the regulator will then take action against those responsible.
On Thursday, IndusInd Bank said it has appointed an independent professional firm to investigate discrepancies in its derivative portfolio. Last week, the bank disclosed that it had identified discrepancies in its derivatives portfolio, which could have an impact of about 2.35 per cent of its net worth as of December 2024.
In a statement to the stock exchanges, the bank said this independent firm will conduct a comprehensive investigation to identify the root cause of the recently disclosed accounting discrepancies. This firm will assess the correctness and impact of the accounting treatment of the derivative contracts with regard to the prevailing accounting standards.
The Board of Directors decided to appoint an independent professional firm “to conduct a comprehensive investigation to amongst others, identify the root cause of the discrepancies, assess the correctness and impact of the accounting treatment of the derivative contracts with regard to the prevailing accounting standards/ Guidance, identify any lapses and establish accountability,” the filing further stated.
Meanwhile, the RBI has assured IndusInd Bank depositors of its financial stability following recent speculation about its financial health.
