IndusInd Bank hires global firm to find next CEO and Deputy

IndusInd Bank has reportedly enlisted global executive search firm Egon Zehnder to help identify its next managing director and chief executive officer. This move comes at a critical time for the private lender, which is reportedly facing scrutiny over accounting discrepancies in its derivatives portfolio.

According to two officials familiar with the matter, the bank’s board is reportedly working to finalise a shortlist of three potential candidates for the top position, which will be submitted to the Reserve Bank of India (RBI) before July. Egon Zehnder has also been tasked with identifying suitable candidates for the deputy CEO role.

The current CEO, Sumant Kathpalia, has been granted only a one-year extension by the RBI, raising concerns about leadership stability at the bank. It is understood that IndusInd Bank’s board and promoters believe appointing a new CEO, along with a refreshed management team, will help restore investor confidence and mitigate any negative fallout from the recent regulatory challenges.

IndusInd Bank has not publicly commented on the reports of its CEO search. However, the decision to engage a globally reputed headhunting firm underscores the bank’s intent to secure experienced leadership during this turbulent phase.

With the financial sector keeping a close eye on the situation, the appointment of a new CEO will be a key moment for the bank as it seeks to address regulatory concerns, stabilise its operations, and reassure investors about its long-term strategy.

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