IndusInd Bank is likely to undergo major leadership changes in the coming months, with the Reserve Bank of India (RBI) reportedly advising both the bank’s Chief Executive Officer and his deputy to step down following the discovery of significant accounting lapses. According to The Economic Times, which cited four people familiar with the development, the central bank’s directive comes amid growing concerns over the bank’s financial reporting and internal control practices.
As per the sources, the RBI has asked the bank to initiate the process of identifying suitable successors, after which the resignations of the current top executives would be formally executed. The transitions are expected to occur only after the central bank reviews and approves the proposed new appointments.
This intervention follows an internal probe and regulatory review, during which the RBI is believed to have flagged discrepancies in the bank’s accounting processes. While the nature and extent of the lapses have not been officially detailed, the RBI’s actions suggest the matter is being treated with considerable seriousness.
IndusInd Bank has so far not made any public announcement on the issue. However, the reported regulatory push comes at a time when the central bank has been tightening its oversight of private sector banks, particularly in areas related to governance, risk management, and financial disclosures.
The exit of the current leadership, once confirmed, would mark one of the most high-profile departures in India’s banking sector in recent times, driven directly by regulatory intervention. Industry observers are closely watching the bank’s next steps and the RBI’s follow-up on the matter.
