IndusInd Bank Chairman Sunil Mehta will step down in January 2026.
This represents the 3rd major leadership change since the bank posted its biggest-ever quarterly loss of ₹2,329 crore.
The bank had already undergone a major reshuffle in April when its former CEO and Deputy CEO resigned following ₹1,960 crore accounting lapses.
IndusInd Bank Chairman Sunil Mehta will step down from his role in January 2026 due to organisational overhaul, Reuters reported citing sources. This marks the third major leadership change since the bank reported its largest-ever quarterly loss of ₹2,329 crore in the March quarter, stemming from significant governance and accounting failures.
The organisational rejig at IndusInd Bank started in April this year when its former CEO Sumant Kathpalia and Deputy CEO Arun Khurana had resigned following the ₹1,960 crore accounting lapses.
1 December 2025
Get the latest issue of Outlook Business
According to the report, Sunil Mehta, who has served as IndusInd's Chairman since January 2023, had told the board that he wants to resign at the conclusion of his tenure in January next year and won't seek reappointment.
Notably, Mehta is the former chairman of Yes Bank, which underwent a major restructuring in 2020, and he had previously served as the Managing Director and CEO of Punjab National Bank (PNB) during the period when the bank was hit by the $1.8-billion Nirav Modi–Mehul Choksi fraud.
He has also held leadership roles across several financial institutions and industry bodies, including serving as Chairman of the Indian Banks’ Association (IBA).
Meanwhile, investors have criticised the board of the bank for oversight deficiencies and the lender's delayed disclosure of the accounting errors in its derivative portfolio, which caused its accounts to suffer.
A member of the bank's largest stakeholder, UK's Hinduja family, told Economic Times last week that that the board was going through a restructuring process and that new directors will be appointed. Akila Krishnakumar, another board member, will also be leaving her position next year.
Since senior banker Rajiv Anand became CEO of IndusInd Bank in August 2025, the bank has been going through an organisational transformation.
Ganesh Sankaran was named head of wholesale operations by the lender this week. Amitabh Kumar Singh, the bank's new chief human resources officer, Viral Damania, a new CFO, and several other senior executives have been appointed in the past three months.
Anand told Reuters last month that the organization's deficiencies will be filled and accountability for the accounting inconsistencies will be fixed by the start of the following fiscal year.
