The deadline set by the Reserve Bank of India (RBI) for IndusInd Bank to submit its list of candidates for the next Chief Executive Officer (CEO) has officially ended and the private sector bank has already submitted names of three contenders for the top job. A Reuters report citing sources, had earlier confirmed that the names of the three candidates have been sent to the central bank for approval.
The board has also suggested that the new CEO’s term will be for three years at the bank.
RBI deadline ends, IndusInd submits CEO candidates’ names
The shortlisted candidates include veteran bankers – Axis Bank’s Deputy Managing Director Rajiv Anand, HDFC Bank’s Executive Vice President Rahul Shukla, and Bajaj Finance’s Managing Director Anup Saha.
“Rajiv Anand’s name has been given as first priority by the board, given his reputation and the experience he brings to the table,” one of the people aware of the development told Reuters.
The RBI had asked IndusInd Bank’s board of directors to submit the three names before the deadline of 30 June 2025.
Another report by Economic Times had maintained that the private sector bank is unlikely to consider more contenders for the CEO role.
Kathpalia resignation amid accounting scandal
Earlier on May 1, IndusInd Bank MD and CEO Sumant Kathpalia had resigned with immediate effect, taking moral responsibility for the accounting discrepancies in the Bank’s derivatives portfolio. Just a day before, the Bank’s deputy CEO Arun Khurana had also tendered his resignation with immediate effect.
Financial discrepancies rock IndusInd Bank
In March, IndusInd Bank had disclosed a Rs 1,580 crore discrepancy in its derivatives portfolio, which, it had said, could hit its net worth by approximately 2.35 per cent as of December 2024. The revelation had come just days after the Bank had informed that the RBI has granted its approval for re-appointment of Sumant Kathpalia as MD & CEO of IndusInd Bank for a further period of one year with effect from March 24, 2025. This is of relevance since the Bank’s board had requested a three-year reappointment.
Later again on May 15, the Bank confirmed accounting irregularities totaling Rs 1,269 crore. In a regulatory filing, the Bank had disclosed that its Internal Audit Department (IAD) had identified two significant financial discrepancies – one, the Bank’s statement showed Rs 674 crore incorrectly recorded as interest income across three quarters of FY25. Additionally, a whistleblower complaint led to the discovery of unsubstantiated balances of Rs 595 crore in “other assets” accounts.