RBI Gives Green Light to Committee to Oversee IndusInd Bank Operations

The Reserve Bank of India (RBI) gave the go-ahead to form a temporary leadership at IndusInd Bank. This comes after the sudden resignation of its Managing Director and Chief Executive Officer, Sumant Kathpalia.

As per an exchange filing submitted on Wednesday, the private lender announced that the RBI has given permission to create a “Committee of Executives” to manage the bank’s operations during the transitional period.

Previously, Sumith Kathpalia stepped down from his position, citing multiple failings that came to light during an internal review.

Who will oversee the operations at IndusInd Bank?

The interim executive team consists of Soumitra Sen, head of consumer banking, and Anil Rao, chief administrative officer. Both will be discharging their duties as the CEO of the company until a new successor is appointed, the bank said.

The newly-formed leadership will discharge its duties under the guidance of an ‘Oversight Committee’ appointed by the board of directors. This will be led by the board chairman and include the heads of the audit committee, the compensation and nomination & remuneration committee, and the risk management committee.

The filing stated, “the board chairman and include the heads of the audit committee, the compensation and nomination & remuneration committee, and the risk management committee.”

What happened before?

RBI Gives Green Light to Oversee IndusInd Bank Operations

Following the outcome of an investigation by audit firm Grant Thornton, Sumant Kathpalia resigned on Tuesday, April 29. The probe brought to light the accounting discrepancies, wherein the bank suffered losses worth ₹2,000 crore in its derivatives portfolio