After IndusInd Bank’s Managing Director and Chief Executive Officer, Sumant Kathpalia, abruptly resigned, the Reserve Bank of India (RBI) authorized the appointment of an interim executive team.
IndusInd Bank said in a regulatory filing on Wednesday that the RBI has officially approved the formation of a “Committee of Executives” to oversee the bank’s activities during the transitional period in a letter dated April 29, 2025.
This occurs one day after Sumant Kathpalia resigned and took “moral responsibility” for a number of shortcomings that were discovered during an internal assessment, according to him.
Anil Rao, the chief administrative officer, and Soumitra Sen, the head of consumer banking, will be part of the temporary executive team. According to the bank, the two executives will work together to carry out the CEO’s normal responsibilities until a permanent replacemen
t is found or for a maximum of three months following Kathpalia’s departure, whichever comes first.
RBI-Backed Oversight Committee Formed to Support IndusInd CEO Transition
An “Oversight Committee” composed of members of the bank’s board of directors will oversee the new leadership structure. The heads of the audit, nomination, and remuneration, and risk management committees will be part of this supervisory group, which will be led by the board chairman.
“While upholding high standards of governance, the bank is taking all necessary steps to ensure stability and continuity of its operations,” the filing said.
Following the conclusion of an inquiry by audit firm Grant Thornton, which was hired to look into the cause of the accounting inconsistencies, Sumant Kathpalia resigned on Tuesday. The investigation found that the bank’s derivatives portfolio had lost around ₹2,000 crore.
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