Regulator nudges board to widen candidate pool as CEO hunt continues; Current executive committee’s term ends September 30
The Reserve Bank of India (RBI) has reportedly asked the board of IndusInd Bank to revisit and broaden its search for a new Chief Executive Officer (CEO), as the current shortlist submitted in mid-June may not have met regulatory expectations. According to people familiar with the matter, the central bank has informally advised the bank to consider more diverse candidates, especially in light of the approaching September 30 deadline, when the tenure of the bank’s Committee of Executives (COE) is set to expire.
Although the regulator has not officially rejected the previously submitted names, there is speculation that either some shortlisted candidates have declined the offer or the RBI is simply seeking a more exhaustive process before giving its nod. The CEO appointment, thus far, remains in limbo, with insiders now expecting greater clarity by late August or early September.
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Board May Consider Global Indian Bankers, PSU Executives for Top Role
Sources also revealed that the RBI might want the board to explore names from public sector banks or bankers of Indian origin working overseas. A final shortlist is expected to be submitted by end of July, with the recruitment firm Egon Zehnder continuing to lead the executive search, as first reported in March.
Meanwhile, several high-profile candidates have emerged in the speculation mill. These include:
Rajiv Anand, outgoing Deputy MD of Axis Bank.
Rahul Shukla, Group Head of Corporate and Business Banking at HDFC Bank (currently on sabbatical).
Anup Saha, recently elevated CEO of Bajaj Finance.
While the board has held conversations with Anand and Saha, it is unclear whether those discussions have progressed toward formal offers. Shukla, noted for his performance-driven approach, remains a potential contender despite the ongoing sabbatical, whose reasons have not been publicly disclosed.
Long CEO Search Highlights IndusInd Bank’s Internal Challenges
Insiders suggest that the delay in CEO appointment reflects broader concerns about the bank’s current financial and operational complexities. “There’s still discomfort about the underlying stress in IndusInd’s books, especially after the derivatives-linked accounting lapses, and some candidates may be hesitant to take on such a high-stakes role,” said an executive search consultant.
The CEO position became vacant after Sumant Kathpalia resigned on April 29, assuming moral responsibility for accounting irregularities. In response, a four-member Committee of Executives was constituted on April 30, tasked with steering the bank’s operations until September 30. That date now represents a hard stop for appointing a permanent CEO.
Uncertainty Weighs on Sentiment, But Clarity Expected by September
With RBI now urging the bank to cast a wider net, the selection process could extend well into late Q2 FY26, though stakeholders remain optimistic that the leadership vacuum will be resolved before the COE’s term expires. Emails sent to both IndusInd Bank and the RBI seeking formal comment remained unanswered at the time of publication.
