Sunil Mehta Set to Exit IndusInd Bank as Leadership Transition Widens
IndusInd Bank is preparing for another major leadership change as Chairman Sunil Mehta has expressed his intention to step down at the end of his term in January, according to two sources familiar with the matter. The move comes at a crucial time for the private lender, which has been navigating governance issues, regulatory scrutiny, and an ongoing organisational restructuring.
Mehta, who took charge as chairman in January 2023, informed the board of his decision even as the bank continues to recover from one of the most challenging financial periods in its history. His exit, once formalised, would mark the latest in a series of leadership transitions that began earlier this year.
Bank Grapples With Its Largest-Ever Quarterly Loss After Accounting Hit
IndusInd Bank’s leadership shift follows a period of intense financial stress. The lender reported its largest-ever quarterly loss in the three months ended March 31, driven by a massive $230 million hit to its accounts. This loss stemmed from governance lapses and accounting failures related to the bank’s derivative portfolio, triggering widespread investor concerns.
The fallout from the disclosure also prompted the departures of former CEO Sumant Kathpalia and Deputy CEO Arun Khurana, making Mehta’s planned exit the third major leadership change in less than a year. Investors had criticised the board for its delayed communication of the accounting discrepancies and perceived shortfalls in internal oversight.
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Board Faces Pressure as Oversight Questions Intensify
IndusInd Bank’s board has faced scrutiny from shareholders and analysts following the derivative-related accounting lapses. The governance issues not only affected the bank’s financial results but also dented investor confidence in the institution’s internal control mechanisms.
Mehta’s decision to step down adds another dimension to the ongoing challenges, especially as clarity on the future composition of the board remains limited. Sources indicated that the decision is not yet public, and discussions on succession are likely ongoing.
A spokesperson for IndusInd Bank told Reuters that the chairman and the board “remain fully committed to leading the organisation in line with its strategic priorities”, assuring stakeholders that the bank will continue to make appropriate disclosures as required by law.
Sunil Mehta’s Background Highlights Leadership During Times of Crisis
Before joining IndusInd Bank, Sunil Mehta held prominent leadership positions at Yes Bank—during its restructuring phase—and at Punjab National Bank, which dealt with a $1.8 billion fraud incident. His tenure at both banks was marked by efforts to stabilise operations and rebuild governance frameworks.
Given this background, Mehta’s leadership at IndusInd Bank came at a time when steady guidance was critical. His planned exit therefore raises fresh questions about the bank’s long-term governance structure and the direction of its board.
Hinduja Group Signals Broader Board Restructuring
The Hinduja family, the largest shareholder in IndusInd Bank, has also indicated upcoming changes in the board’s composition. A.P. Hinduja told the Economic Times last week that the bank is undertaking a board restructuring exercise, including plans to appoint new directors.
The term of board member Akila Krishnakumar is set to end next year. However, Reuters reported that it remains unclear whether her tenure will be extended as part of the revamped governance plan.
Organisational Overhaul Gains Momentum Under CEO Rajiv Anand
IndusInd Bank’s organisational overhaul has accelerated since Rajiv Anand, a seasoned banker, took over as CEO in August 2025. Under his leadership, the bank has begun rebuilding its senior management ranks and strengthening internal accountability.
This week, the lender appointed Ganesh Sankaran as the head of wholesale banking operations. Over the past three months, IndusInd Bank has also onboarded a new chief financial officer, a chief human resources officer, and several other senior executives, signalling a comprehensive restructuring effort.
Anand recently told Reuters that the process of filling organisational gaps and fixing responsibility for accounting discrepancies will be completed by the start of the next financial year. He emphasised that IndusInd Bank aims to grow faster than the broader banking system and is targeting a return on assets (ROA) of 1% over the next 12–18 months.
Investor Outlook: Stability and Governance Reforms Remain Key
For investors, the leadership transition and governance reforms represent both risk and opportunity. While the recent losses and oversight concerns have weighed on sentiment, the bank’s aggressive restructuring and clear guidance from the new management team may help restore confidence.
Analysts suggest that consistent communication, strong risk management, and a stable board will be crucial for IndusInd Bank as it seeks to rebuild credibility and deliver sustainable financial performance.
Conclusion: IndusInd Bank Enters Critical Phase of Leadership Renewal
As Sunil Mehta prepares to step down in January, IndusInd Bank finds itself at a pivotal moment. The combination of a major organisational overhaul, ongoing board restructuring, and renewed financial targets positions the bank for a potential turnaround—provided governance reforms continue to gain traction.
With new leadership at the helm and investor scrutiny at its peak, the coming months will be decisive in shaping the bank’s future direction and restoring long-term stakeholder confidence.
