New Delhi: After IndusInd Bank’s Managing Director and Chief Executive Officer (CEO), Sumant Kathpalia, abruptly resigned, the Reserve Bank of India (RBI) authorised the appointment of an interim executive team.
IndusInd Bank declared in a regulatory filing on Wednesday that the RBI had officially approved the formation of a “Committee of Executives” to oversee the bank’s activities during the transitional period in a letter dated 29 April.
Following the conclusion of an inquiry by audit firm Grant Thornton, which was hired to look into the cause of the accounting inconsistencies, Sumant Kathpalia resigned on Tuesday. The investigation found that the bank’s derivatives portfolio had lost around Rs 2,000 crore.
This occurred one day after Sumant Kathpalia resigned and took “moral responsibility” for several shortcomings that were discovered during an internal review, according to him.
Kathpalia stated in his letter of resignation that he intended to take moral responsibility for the issue’s direct and indirect shortcomings.
Anil Rao, the chief administrative officer, and Soumitra Sen, the head of consumer banking, will be part of the interim executive team. According to the bank, the two executives will work together to carry out the CEO’s normal responsibilities until a permanent replacement is found or for a maximum of three months following Kathpalia’s departure, whichever comes first.
The new leadership structure will function under the guidance of an ‘Oversight Committee’ drawn from the bank’s board of directors. This supervisory group will be chaired by the board chairman and include the heads of the audit committee, the compensation and nomination & remuneration committee, and the risk management committee.
“The bank is taking all necessary steps to ensure stability and continuity of its operations while maintaining high standards of governance,” the filing stated.
