Outlook Business Desk
IndusInd Bank on Tuesday announced the resignation of its Managing Director and CEO, Sumant Kathpalia, with immediate effect. Kathpalia’s resignation marks the end of a leadership era at IndusInd Bank, which he led since March 2020.
Prior to his resignation, the RBI had granted Kathpalia a one-year extension, despite the bank’s board recommending a three-year term
IndusInd Bank has formed an interim executive committee to manage the bank’s operations until a new CEO is appointed.
The RBI has approved the formation of the interim team, allowing the bank to continue functioning smoothly until a permanent CEO is selected.
IndusInd Bank has named Soumitra Sen, head of consumer banking and Anil Rao, chief administrative officer as interim leaders to jointly handle CEO duties for up to three months until a new chief is appointed.
The interim committee will manage key operational functions and ensure business runs smoothly during the leadership transition.
The leadership change follows a Rs 2,000 Crore derivative loss suffered by IndusInd Bank due to exposure to a client account as reported by Business Standard.
In his resignation letter, Kathpalia expressed his intention to accept 'moral accountability' for both direct and indirect failures associated with the matter.