MUMBAI: Reserve Bank of India (RBI) has approved the reappointment of Sumant Kathpalia as MD and CEO of IndusInd Bank for one year, instead of the three-year term recommended by the bank’s board. This is the second time the regulator has shortened his tenure from what was initially proposed by the bank’s board.
In a filing to stock exchanges on Friday, IndusInd Bank said RBI approved Kathpalia’s reappointment for an additional year, from March 24, 2025, to March 23, 2026. In Sept 2022, the bank’s board had approved his reappointment for three years, effective March 24, 2023, but RBI sanctioned only a two-year term. In Sept 2024, the board again sought a three-year extension, from March 24, 2025, to March 23, 2028, but RBI has now approved only a one-year extension.
Kathpalia, who has over 37 years of experience, took charge as MD and CEO on March 24, 2020. Before joining IndusInd Bank 17 years ago, he worked at Citibank, Bank of America, and ABN AMRO.
Under his leadership, IndusInd Bank has focused on strengthening its balance sheet, expanding its retail deposit base, diversifying its portfolio, maintaining capital adequacy, and driving digital transformation. He has also worked on improving investor confidence and governance frameworks.
“Kathpalia has led the bank’s core executive team, overseeing its turnaround and focusing on business growth, profitability, digitisation, and compliance,” the bank said in its filing.