Mumbai, Apr 30 (UNI) IndusInd Bank on Wednesday in a regulatory filing said that the Reserve Bank of India (RBI) has approved the formation of an interim Committee of Executives to oversee its operations.

The approval came in a situation where the bank is without a Managing Director and Chief Executive Officer (MD&CEO).

Notably, Sumant Kathpalia had resigned from the position of MD and CEO with effect from the close of working hours on April 29.

The committee, comprising Soumitra Sen (Head – Consumer Banking) and Anil Rao (Chief Administrative Officer), will manage the bank’s day-to-day affairs under the supervision of an Oversight Committee of the Board, the bank said.

The Oversight Committee will be chaired by the Chairman of the Board and will include the chairs of the Audit Committee, the Compensation and Nomination & Remuneration Committee, and the Risk Management Committee.

“This interim arrangement has been approved by the RBI via a letter dated April 29, 2025, and will remain in place until a new MD&CEO takes charge or for a period of three months from the date of the previous CEO’s departure—whichever is earlier,” the bank said in a statement.

The crisis-ridden bank has clarified that it had formally approached the RBI seeking approval for such a transitional mechanism to ensure business continuity and governance standards following the end of the outgoing CEO’s tenure.

"The Bank is taking all necessary steps to ensure stability and continuity of its operations while maintaining high standards of governance," the statement said.

Bank’s deputy CEO Arun Khurana had also resigned due to the recent accounting discrepancies in the derivatives trading.

The bank has faced multiple headwinds that clouded its near-term outlook with the key concern being a 2.35% overstatement in its derivatives portfolio, stemming from long-standing internal trade accounting discrepancies.

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