Indusind Bank was shortlisted for Spencer Stuart to find a new CEO after Sumant Kathpalia stepped down as managing director and CEO on Tuesday. Senior executives said the bank will now complete the committee of its new head within a few months.
Industrial Bank’s deputy chief executive Arun Khurana resigned after recently spotting accounting differences in the bank’s derivative portfolio this week.
“Spencer Stuart was selected in March and the search for the new CEO should end in the next few months. For good corporate governance, banks may look at other senior positions in other search companies and even consider someone internally. However, Spencer Stuart takes care of CEO MALDATE,” a senior executive who is aware of the development.
Spencer Stuart is part of the top headhunter commonly known as “Shrek” – others are Heidrick & Luggles, Russell Reynolds, Egon Zehnder and Korn Ferry.
Egon Zehnder (Egon Zehnder) has always been the company of choice to hire CEOs of private banks. HDFC Bank, Axis Bank and RBL Bank have appointed Egon Zehnder to find CEO candidates.
Indusind and Spencer Stuart did not respond to mint’s questions.
“In addition to the CEO position, there are other places that are open as some senior executives are close to retirement. For these executives, banks will look at other search companies and even internal pipelines,” the executive said, citing the preceding words. “The new CEO can also bring his own group of seniors from the industry, and in the coming months, banks will change.”
According to another senior executive, the appointment of the Industrial Bank’s new CEO could take very little time because executives act quickly. Usually, once a paper is submitted, companies will quickly let senior executives go to process sensitive information.
The “Senior Commission” of Industry
The Reserve Bank of India allows the Industrial Bank board to form a “executive committee” to operate the bank.
The “Supervisory Commission” will include Soumitra Sen, head of consumer banking and marketing, and Anil Rao, chief executive officer. They will oversee Indusind Bank’s actions under the guidance of the Board of Supervisors Committee.
The oversight committee will be led by Sunil Mehta, Chairman of the Board of Directors of Indusind Bank, and will include the chairman of the bank’s audit committee, the Remuneration and Nominations and Remuneration Committee, and the Risk Management Committee.
“The board of directors constitutes such a ‘executive committee’ to oversee the bank’s operations, under the supervision and guidance of the board’s oversight committee until the bank’s new MD& CEO takes responsibility, or 3 months since the date of obtaining the current MD& CEO, the previous MD& CEO was earlier, before.”
It added: “Banks are taking all the necessary steps to ensure the stability and continuity of their operations while maintaining high standards of governance.”
On March 10, Indusind Bank tagged the difference ₹There are 15.3 million in its derivative account balance. Shortly after the disclosure, Kathpalia told analysts that this could lead to the Reserve Bank of India (RBI) allowing him to extend it for only one year, not three.
Kathpalia, who has led Indusind Bank for five years, said he is resigning due to ongoing derivatives issues. In my resignation letter to the bank, Kesparia wrote: “I assume moral responsibility considering the various committee/omitted behaviors I have noticed.”
Indusind Bank stock ended Wednesday without any change ₹There are 838.45 each on BSE.
