IndusInd Bank in final stages of CEO selection, to propose new name to RBI by June 30

The bank prepares to submit new CEO recommendation to RBI.

For the first time in 20 years, IndusInd Bank has reported a quarterly net loss for the January–March period of FY25, as previously reported accounting issues and stress in the microfinance portfolio affected the bank’s financials. Following the findings related to discrepancies in derivatives, the bank’s CEO and Deputy CEO stepped down from their roles.

Now, the bank's board has said it is in the final stages of appointing a new CEO.

“The RBI has advised the bank to submit proposals for appointment of the new CEO for RBI’s approval by June 30, 2025. The board is at an advanced stage in the selection process and is confident that the recommendations will be submitted to the RBI in advance of the timeline prescribed,” IndusInd Bank said during the post-earnings conference call.

In the interim, the bank is being run by a Committee of Executives, currently comprising Anil Rao and Sumitra Sen. This committee is working under the guidance of an oversight committee of the board, which includes the chairpersons of the board, the Risk Management Committee, the Compensation and Nomination Committee, and the Audit Committee.

This leadership change comes as the bank reported a net loss of Rs 2,328 crore for Q4FY25. The bank’s Net Interest Income (NII), or core income, fell by 43.4 percent compared to the same quarter last year to Rs 3,048 crore.

Asset quality also weakened. Gross NPA rose to 3.13 percent from 2.25 percent in the December quarter, while net NPA stood at 0.95 percent, up from 0.68 percent in the previous quarter.