RBI grants 1-month extension to IndusInd Bank's committee of executives

Bank's chief human resources officer resigns after a two-decade stint with the bank

The Reserve Bank of India (RBI) has approved extending by a month the tenure of IndusInd Bank’s “committee of executives” – who are running the bank in the absence of a managing director (MD) and chief executive officer (CEO).

 

The extension would be with effect from July 29 to August 28 or until the new MD & CEO is appointed and assumes charge, whichever is earlier, IndusInd Bank informed the exchanges late on Friday.

 

In April, the bank had received RBI’s approval to constitute a “committee of executives”, which will discharge the duties, roles and responsibilities of the bank CEO, following Sumant Kathpalia’s resignation from the position, under the guidance of an oversight committee of the board, headed by chairman of the board, Sunil Mehta. 

 

The bank’s “committee of executives” comprises Soumitra Sen, head – Consumer Banking, and Anil Rao, chief administrative officer.

 

The “committee of executives” oversees the operations of the bank, under the oversight and guidance of an oversight committee of the board, headed by chairman of the board, along with members, including the chairs of the audit committee, the compensation and nomination and remuneration committee, and the risk management committee.

 

Currently, as it stands, the banks’ board is without a whole-time member following the resignations of CEO and deputy CEO.

 

Sen, who is part of the “committee of executives”, joined IndusInd Bank in 2008 to revamp and scale up the bank’s distribution network. He started the MNC food giant, Nestle, before moving on as a retail banker. He has worked with Bank of America and thereafter had stints with Deutsche Bank AG, ABN AMRO Bank NV and RBS, before moving to IndusInd Bank.

 

Rao has over three decades in the banking industry, and has worked with Bank of America, followed by stints at ABN AMRO Bank and Royal Bank of Scotland. 

 

Separately, the bank in an exchange notification disclosed that Zubin Mody, chief human resources officer and senior management personnel of the bank, has tendered his resignation, with effect from July 25, to pursue new opportunities outside, after a two-decade stint with the bank.

 

Mody’s exit from the bank comes after Sumant Kathpalia, the erstwhile MD & CEO of IndusInd Bank, resigned in April, citing “moral responsibility” for “various acts of commission/omission” following accounting lapses that resulted in a loss of nearly Rs 2,000 crore.

 

Additionally, the erstwhile deputy CEO Arun Khurana resigned in connection with the same accounting issues. Previously, in January, the chief financial officer (CFO) of the bank had resigned.