Latest news with #SumantKathpalia
Business Upturn
8 hours ago
- Business
- Business Upturn
IndusInd Bank in focus as it denies reports of RBI asking to expand CEO search; appointment process underway
By Aditya Bhagchandani Published on July 21, 2025, 14:09 IST IndusInd Bank clarified on Monday that the process of appointing its new Managing Director & Chief Executive Officer (MD & CEO) is already underway and firmly denied media reports claiming the Reserve Bank of India (RBI) has asked the board to expand its search for candidates. Speaking to CNBC-TV18, the bank said: 'We firmly deny reports of RBI asking to expand CEO search. Appointment of new MD & CEO (including seeking relevant approvals) is in process.' The clarification comes after reports suggested that the RBI may have informally advised the board to look beyond the list of names it had already submitted in mid-June and consider more candidates before finalizing a successor to former CEO Sumant Kathpalia, who stepped down in April. According to earlier reports, the RBI was not fully satisfied with the initial list of candidates and reportedly advised the board to broaden its search, even considering senior bankers from public sector banks and Indian-origin professionals working abroad. The board is expected to submit additional names by the end of July, given that the bank has to finalize the appointment before the interim committee of executives (COE) completes its term on September 30, 2025. Among the names reportedly in consideration for the top post are: Rajiv Anand , the soon-to-retire Deputy MD of Axis Bank Rahul Shukla , Group Head of Corporate & Business Banking at HDFC Bank (currently on sabbatical) Anup Saha, newly appointed CEO of Bajaj Finance Sources familiar with the matter had earlier indicated that the appointment process was proving challenging, with some candidates expressing reservations about taking up the role, given the complexities of the bank's financial and operational situation. Sumant Kathpalia, the former CEO, resigned on April 29, assuming moral responsibility for accounting lapses related to derivatives. Following his departure, a four-member COE was appointed on April 30 to oversee operations until the end of September. A headhunter involved in the process had commented that the 'hunt for a CEO is turning out to be a long-drawn process' as 'most candidates are apprehensive about the opportunity.' IndusInd Bank has reassured stakeholders that the board is working towards a timely resolution and the process of appointment is progressing as planned. Disclaimer: The above information is based on statements to CNBC-TV18 and earlier media reports. It is provided for informational purposes only and does not constitute investment or financial advice. Please consult a professional advisor or conduct your own research before making any financial decisions. Neither the author nor the publisher is responsible for any actions taken based on this information. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Yahoo
3 days ago
- Business
- Yahoo
India's IndusInd Bank to consider raising funds
(Reuters) -IndusInd Bank will consider a proposal to raise funds by issuing long-term bonds at its board meeting on July 23, the Indian lender said on Friday. The board will consider issuing the bonds on a private placement basis and whether to increase capital through depository receipts and qualified institutional placements. The bank took a $230 million hit in the fiscal year ended March 31 due to years of misaccounting of internal derivative trades, prompting the resignations of CEO Sumant Kathpalia and deputy Arun Khurana in April. It has shortlisted senior bankers from three other financial organizations, including HDFC Bank, for the position of CEO, Reuters reported in June. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Recorder
3 days ago
- Business
- Business Recorder
India's IndusInd Bank to consider raising funds
IndusInd Bank will consider a proposal to raise funds by issuing long-term bonds at its board meeting on July 23, the Indian lender said on Friday. The board will consider issuing the bonds on a private placement basis and whether to increase capital through depository receipts and qualified institutional placements. The bank took a $230 million hit in the fiscal year ended March 31 due to years of misaccounting of internal derivative trades, prompting the resignations of CEO Sumant Kathpalia and deputy Arun Khurana in April. India's Bandhan Bank quarterly profit slumps on higher bad loan provisions It has shortlisted senior bankers from three other financial organizations, including HDFC Bank, for the position of CEO, Reuters reported in June.
Reuters
3 days ago
- Business
- Reuters
India's IndusInd Bank to consider raising funds
July 18 (Reuters) - IndusInd Bank ( opens new tab will consider a proposal to raise funds by issuing long-term bonds at its board meeting on July 23, the Indian lender said on Friday. The board will consider issuing the bonds on a private placement basis and whether to increase capital through depository receipts and qualified institutional placements. The bank took a $230 million hit in the fiscal year ended March 31 due to years of misaccounting of internal derivative trades, prompting the resignations of CEO Sumant Kathpalia and deputy Arun Khurana in April. It has shortlisted senior bankers from three other financial organizations, including HDFC Bank ( opens new tab, for the position of CEO, Reuters reported in June.
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Business Standard
11-07-2025
- Business
- Business Standard
RBI to intensify scrutiny of bank auditors after governance lapses
The Reserve Bank of India (RBI) is expected to turn the knob on statutory auditors of banks, and by extension, on the role of their audit committees. Senior sources in the bank auditing fraternity are of the view that with governance issues cropping up in two banks all at once, the RBI is to intensify its engagement with them. The reference here is to IndusInd Bank and Karnataka Bank, where the top two corner-room occupants in both banks stepped down in quick succession. This is also in line with Mint Road's senior supervisory managers asking questions on bank board deliberations and the role of board sub-committees. In April, IndusInd Bank's managing director (MD) and chief executive officer (CEO) Sumant Kathpalia, and Arun Khurana, its deputy CEO, quit. In Karnataka Bank, MD and CEO Srikrishnan Hari Hara Sarma resigned, effective July 15, 2025, with the bank's executive director, Sekhar Rao, set to move on at the end of this month. In IndusInd Bank, the auditors' role is being looked into, with the National Financial Reporting Authority issuing notices to its current and former auditors and seeking information on the audit processes after the blow-out in the derivatives book. In the case of Karnataka Bank, it is the auditors' concerns over expenditures sanctioned by the two executives — Sarma and Rao — which made the duo quit. Interestingly, the derivative loss of Rs 2,100 crore reported by IndusInd Bank on March 10 this year — in hindsight — has turned out to be an occurrence that RBI deputy governor M Rajeshwar Rao was prescient about. In his speech on the Role of statutory auditors in emerging financial landscape (July 16, 2024), Rao referred to the revised guidelines on the classification and valuation of the investment portfolio in banks. The revised norms, effective from April 1, 2024, required banks to classify the investment portfolio based on the intention and objective of holding the financial asset (the business model) and the contractual cash flow characteristics of such assets. Further, the categorisation of an asset between banking book and trading book can have significant capital implications. 'These aspects shall require extensive use of management judgement. We expect the auditors to carefully understand the regulations and ensure that banks comply not only with regulations but also regulatory intent,' he said. He added that the interest of the regulator is not limited to fair and transparent representation of affairs in the entities regulated by it. 'Banks and financial institutions are also users of financial statements and, to a large extent, their well-being is linked to the entities which they lend to or invest in. Therefore, we are equally concerned with sound audit practices that result in high-quality corporate reporting,' Rao noted.
