IndusInd Bank‘s newly appointed chairman, Arijit Basu, steps into the role with a mandate that is as delicate as it is demanding. There is some relief: the bank returned to profitability in the third quarter after posting a loss of Rs 447 crore in the previous quarter. But the larger task ahead is restoring credibility after governance and accounting lapses that led to the exit of its former CEO and deputy CEO—and dented investor confidence.
Basu will succeed Sunil Mehta, whose tenure ends on January 30, subject to shareholder approval. He will join the board as an additional director in the non-executive independent category and serve as part-time chairman for a three-year term.
The immediate challenge before him is rebuilding trust in a board that has come under criticism for weak oversight and delayed disclosure of accounting lapses in the bank’s derivatives portfolio. Those lapses resulted in losses of nearly Rs 2,000 crore and triggered intense regulatory and investor scrutiny.
Ahead of taking charge, Basu resigned on Friday as independent non-executive director and chairman of HDB Financial Services, a subsidiary of HDFC Bank. During his tenure, the company successfully completed one of India’s largest IPOs, raising Rs 12,500 crore last year.
Who is Arijit Basu?
A seasoned banker, Basu brings decades of boardroom and operating experience. He spent much of his career at State Bank of India, joining as a probationary officer in 1983. He later served as managing director and CEO of SBI Life Insurance, steering the company through its successful stock market listing in 2017, before retiring as SBI’s managing director in 2020. Post-retirement, he joined AZB & Partners as a senior consultant in 2021.
Basu currently serves as an independent director on the boards of Prudential Plc, Peerless Hospitex and Hospital Research Centre, and CleanMax Enviro Energy Solutions. He is also a senior advisor to Ares Management and sits on the advisory board of Razorpay.
Leadership Reset
IndusInd Bank has already initiated a broader leadership reset. It has appointed former Axis Bank executive Rajiv Anand as CEO, who is said to be driving changes across governance and organisational culture. The bank has also brought in a new CFO, Viral Damania, a new internal audit head and general counsel, and is expected to appoint a chief risk officer by the end of January.
Against this backdrop, Basu’s appointment signals an attempt to steady the ship. His experience will be closely watched as IndusInd Bank seeks to move past reputational damage and re-establish confidence among regulators, investors and customers alike.