The bank reported its biggest ever quarterly loss in the three months ended March 31, following a $230 million hit to its accounts, amid governance and accounting failures that prompted the departure of former CEO Sumant Kathpalia and deputy CEO Arun Khurana earlier this year. | Photo credit: REUTERS/ANUSHREE FADNAVIS
The bank reported its biggest ever quarterly loss in the three months ended March 31, following a $230 million hit to its accounts, amid governance and accounting failures that prompted the departure of former CEO Sumant Kathpalia and deputy CEO Arun Khurana earlier this year.
The board of IndusInd Bank has come under criticism from investors over lapses in supervision and delay in disclosing the accounting errors in its derivatives portfolio, leading to the hit to the bank’s accounts.
Sunil Mehta, who has been chairman of IndusInd since January 2023, has informed the board of his wish to resign at the end of his term, said the sources, who declined to be identified as the decision has not yet been made public.
Mehta is the former chairman of Yes Bank, which underwent restructuring in 2020, as well as state-owned Punjab National Bank, which was hit by a $1.8 billion fraud.
A spokesperson for IndusInd Bank told Reuters that the bank’s chairman and board “remain fully committed to leading the organization in line with its strategic priorities” and that the lender “will continue to make necessary disclosures in accordance with applicable law and at the appropriate stage.”
AP Hinduja, member of the UK-based Hinduja family, the largest shareholder of IndusInd Bank, told the Economic times Last week the board announced that it was undergoing a restructuring process and plans to appoint new directors.
The term of another board member, Akila Krishnakumar, will also expire next year. Reuters could not determine whether her term would be extended.
ORGANIZATIONAL OVERHAUL
IndusInd Bank has been undergoing an organizational overhaul since senior banker Rajiv Anand took over as CEO in August 2025.
This week, the lender appointed Ganesh Sankaran as head of wholesale business. Over the past three months, the bank has appointed a new Chief Financial Officer, a Chief Human Resources Officer and several other senior managers.
The process of filling gaps in the organization and determining responsibility for accounting discrepancies will be completed by the start of the next fiscal year, Anand told Reuters last month.
The lender will grow faster than the banking system and aims for a return on assets of 1 percent over the next 12 to 18 months, he said.
Published on December 10, 2025
#chairman #IndusInd #Bank #step #January #due #organizational #reorganization