IndusInd Bank slips 7% as RBI reappoints MD & CEO for shorter tenure

RBI's approval for reappointment of MD & CEO being for a lower tenure compared to board approval, which was for three years, could keep stock under pressure in near term

Shares of IndusInd Bank slipped 7.46 per cent to Rs 1,060 on the BSE on Monday after the Reserve Bank of India approved the reapp­oin­tment of Sumant Kathpalia as the managing director and chief executive officer (MD & CEO) for a period of two years as against the board's approval for 3 years.

"Fundamental strength and strategy to improve business mix remain on track. However, central bank's approval for reappointment of MD & CEO being for a lower tenure compared to board approval, which was for three years, could keep stock under pressure in the near-term", ICICI Securities said