IndusInd Bank Set to Engage Global Firms for Leadership Recruitment

Search for New CEO and Senior Executives to Begin in April

IndusInd Bank is set to initiate a formal search process to fill key senior management positions, including that of Managing Director & CEO. The recruitment drive, expected to commence by early April 2025, will likely see the involvement of global executive search firms Egon Zehnder and Korn Ferry.

The search will cover at least eight top-level roles, classified as Material Risk Takers (MRTs) in banking terminology, reinforcing IndusInd Bank’s commitment to strengthening its leadership team amid ongoing strategic and operational transformations.

Positions to be Filled

The leadership overhaul comes after the Reserve Bank of India (RBI) granted a one-year extension to the current MD & CEO, Sumant Kathpalia, instead of the three-year tenure recommended by the bank’s board.

Roles Under Consideration:

• MD & CEO – To replace Sumant Kathpalia, whose term ends on March 23, 2026.

• Deputy MD & Executive Director – Currently held by Arun Khurana, who has additional responsibility as CFO.

• Chief Finance Officer (CFO) – To replace Gobind Jain, who resigned on January 17, 2025.

• Chief Compliance Officer (CCO) – A new appointment expected as part of governance improvements.

• Chief Operations Officer (COO) – To oversee operational and digital banking transformations.

• Head – Corporate, Commercial & Rural Banking – Currently led by Sanjeev Anand, who is set to retire later this year.

• Head – Consumer Banking & Marketing – Held by Soumitra Sen, also expected to superannuate in 2025.

Recruitment Strategy and Division of Roles

According to sources familiar with the matter:

• Egon Zehnder is expected to focus on finding suitable candidates for the CEO and Deputy CEO roles.

• Korn Ferry is likely to be tasked with identifying candidates for Executive Director positions, business heads for Corporate & Consumer Banking, and other key functions.

“The Nomination and Remuneration Policy Committee (NRC) and the board of directors will convene this week to formally launch the recruitment process,” said a senior banking official aware of the matter.

RBI’s One-Year Extension for Kathpalia and Its Implications

On March 7, 2025, the Reserve Bank of India approved only a one-year extension for Sumant Kathpalia as MD & CEO, despite the bank’s recommendation for a three-year term.

• During an investor call on March 10, Kathpalia hinted at the possibility of the board considering external candidates for the CEO role once his tenure ends.

• He also suggested that the RBI may not have been entirely comfortable with his leadership style, which could have influenced the shortened extension.

“There is already limited availability of internal leadership talent, making it unlikely that an internal candidate will be appointed as the next CEO,” said a source familiar with the matter.

Potential Treasury and Risk Management Shake-Up

The bank is also evaluating organizational changes in its treasury and risk management functions.

• Senior-level changes in these departments are expected as part of the broader leadership restructuring.

• Additionally, IndusInd Bank is overhauling its microfinance (MFI) operations, with domestic headhunting firms already engaged in the recruitment process.

CEO Appointment Expected by September-October 2025

Once the MRT hiring process begins in April, the board aims to finalize the selection of a CEO candidate by September or October 2025.

“The CEO search is a top priority, and the board will ensure the selection process moves swiftly,” said a senior banker involved in the discussions.

The leadership changes at IndusInd Bank come at a critical time, as the bank navigates regulatory expectations, governance reforms, and strategic growth plans in an evolving financial landscape.