IndusInd Bank clarified on Monday that the process of appointing its new Managing Director & Chief Executive Officer (MD & CEO) is already underway and firmly denied media reports claiming the Reserve Bank of India (RBI) has asked the board to expand its search for candidates.
Speaking to CNBC-TV18, the bank said:
“We firmly deny reports of RBI asking to expand CEO search. Appointment of new MD & CEO (including seeking relevant approvals) is in process.”
The clarification comes after reports suggested that the RBI may have informally advised the board to look beyond the list of names it had already submitted in mid-June and consider more candidates before finalizing a successor to former CEO Sumant Kathpalia, who stepped down in April.
According to earlier reports, the RBI was not fully satisfied with the initial list of candidates and reportedly advised the board to broaden its search, even considering senior bankers from public sector banks and Indian-origin professionals working abroad. The board is expected to submit additional names by the end of July, given that the bank has to finalize the appointment before the interim committee of executives (COE) completes its term on September 30, 2025.
Among the names reportedly in consideration for the top post are:
-
Rajiv Anand, the soon-to-retire Deputy MD of Axis Bank
-
Rahul Shukla, Group Head of Corporate & Business Banking at HDFC Bank (currently on sabbatical)
-
Anup Saha, newly appointed CEO of Bajaj Finance
Sources familiar with the matter had earlier indicated that the appointment process was proving challenging, with some candidates expressing reservations about taking up the role, given the complexities of the bank’s financial and operational situation.
Sumant Kathpalia, the former CEO, resigned on April 29, assuming moral responsibility for accounting lapses related to derivatives. Following his departure, a four-member COE was appointed on April 30 to oversee operations until the end of September.
A headhunter involved in the process had commented that the “hunt for a CEO is turning out to be a long-drawn process” as “most candidates are apprehensive about the opportunity.”
IndusInd Bank has reassured stakeholders that the board is working towards a timely resolution and the process of appointment is progressing as planned.
Disclaimer: The above information is based on statements to CNBC-TV18 and earlier media reports. It is provided for informational purposes only and does not constitute investment or financial advice. Please consult a professional advisor or conduct your own research before making any financial decisions. Neither the author nor the publisher is responsible for any actions taken based on this information.
