IndusInd Bank Chairman Sunil Mehta will step down after his term ends in January, according to a Reuters report citing two individuals familiar with the matter. This development marks the latest leadership change at the private bank.
The lender reported its largest-ever quarterly loss of ₹2,328.9 crore for the three months ended March 31, primarily due to higher provisioning and lower income, amid governance and accounting issues. This led to the resignation of former CEO Sumant Kathpalia and Deputy CEO Arun Khurana earlier this year, the report said.
It further added that IndusInd Bank's board has encountered criticism from investors due to inadequate oversight and delays in revealing accounting lapses in its derivative portfolio, which negatively impacted the bank's finances.
Sunil Mehta, who has been chairman of IndusInd since January 2023, has informed the board of his intention to resign at the end of his term, the report said, citing an individual who declined to be identified, as the decision has not been made public yet.
Mehta is the former chairman of Yes Bank, which was restructured in 2020, and of the state-owned Punjab National Bank, hit by a nearly ₹14,000 crore fraud.
A spokesperson told the news portal that IndusInd's chairman and the board "remain fully committed to leading the organisation in line with its strategic priorities" and the bank will "continue to make necessary disclosures in accordance with applicable laws and at the appropriate stage."
Meanwhile, AP Hinduja, a member of the UK-based Hinduja family and the largest shareholder in IndusInd Bank, informed the Economic Times last week that the board is currently restructuring and intends to appoint new directors.
Notably, Akila Krishnakumar, another board member, has a term that ends next year. However, it could not be determined whether her term would be extended.
Organisational Restructuring
Since Rajiv Anand assumed the role of CEO in August 2025, IndusInd Bank has been undergoing an organisational overhaul.
The private lender announced that Ganesh Sankaran has been appointed as the new head of wholesale operations this week. Over the past three months, the bank has also appointed a new chief financial officer, a chief human resources officer, and several other senior executives.
The process of addressing gaps within the organisation and establishing accountability for the accounting discrepancies will be completed by the start of the next financial year, Anand told Reuters earlier.
(With inputs from agencies.)
