IndusInd Bank announced on July 25 that the Reserve Bank of India (RBI) has approved an extension of the board’s oversight committee for one more month, starting from July 29. The extension will remain in place until August 28 or until a new managing director and CEO takes charge, whichever comes earlier.
The previous tenure of the committee was scheduled to end on July 28. The RBI had earlier approved the formation of this interim arrangement to ensure operational continuity following the sudden exit of the bank’s top leadership.
The leadership vacuum was triggered when Sumanth Kathpalia, who had served as the bank’s CEO since March 2020, resigned on April 29, citing moral responsibility for discrepancies linked to derivative accounting.
His resignation came just a day after Deputy CEO Arun Khurana also stepped down, intensifying concerns over governance and prompting regulatory attention.
In response, the RBI cleared the formation of a temporary ‘committee of executives’ comprising Soumitra Sen and Anil Rao. The committee was tasked with managing day-to-day operations under the oversight of the board, initially for a period of three months or until a new CEO was appointed.
With the appointment process for a new MD and CEO still underway, the RBI’s latest extension ensures there is no leadership vacuum during the transition period.
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