The financial institution reported its largest-ever quarterly loss within 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 12 months.
IndusInd Financial institution’s board has confronted criticism from buyers over shortfalls in oversight and delay in disclosing the accounting lapses in its by-product portfolio, which led to the hit to the financial institution’s accounts.
Sunil Mehta, who has been the chairman of IndusInd since January 2023, has knowledgeable the board about his want to step down on the finish of his time period, the sources, who declined to be recognized as the choice has not been made public but, stated.
Mehta is the previous chairman of Sure Financial institution, which underwent restructuring in 2020, and likewise of the state-owned Punjab Nationwide Financial institution which was hit with a $1.8 billion fraud.
An IndusInd Financial institution spokesperson instructed Reuters that the financial institution’s chairman and the board “stay absolutely dedicated to main the organisation in step with its strategic priorities” and the lender will “proceed to make needed disclosures in accordance with relevant legal guidelines and on the acceptable stage.”
A.P. Hinduja, a member of the UK-based Hinduja household, which is the biggest shareholder in IndusInd Financial institution, instructed the Financial Instances final week that the board was present process a restructuring course of and plans to nominate new administrators.The time period of one other board member, Akila Krishnakumar, additionally ends subsequent 12 months. Reuters couldn’t decide whether or not her time period could be prolonged.
Organisational haul
IndusInd Financial institution has been present process an organisational overhaul since senior banker Rajiv Anand took over as its CEO in August 2025.
This week, the lender appointed Ganesh Sankaran as the pinnacle of wholesale operations. Within the final three months, the financial institution has appointed a brand new chief monetary officer, a chief human assets officer, and some different senior executives.
The method of filling gaps within the organisation and fixing accountability for the accounting discrepancies shall be accomplished by the start of subsequent monetary 12 months, Anand instructed Reuters final month.
The lender will develop at a tempo sooner than the banking system and is aiming to maneuver in direction of a return on property of 1% over the subsequent 12-18 months, he stated.
