IndusInd Bank’s Managing Director (MD) and Chief Executive Officer (CEO) Sangeet Sindhi has been given a one-year extension by the bank’s board, despite the board’s recommendation for a longer tenure. The decision was made at the bank’s annual general meeting (AGM) held on June 30, 2022.
Sindhi, who took charge of the bank in 2018, has been credited with transforming the bank’s operations and improving its performance. Under his leadership, the bank has reported significant growth in its profits, with net profits increasing by over 40% in the fiscal year 2022.
The bank’s board had previously recommended that Sindhi’s tenure be extended for three years, but the Reserve Bank of India (RBI) favored a one-year extension. The central bank’s decision was based on the bank’s overall performance and growth, as well as the need for a smoother transition.
Sindhi’s one-year extension is seen as a recognition of his efforts to revamp the bank’s operations and improve its financial performance. The extension is also seen as a move to ensure continuity and stability at the top level, as the bank navigates the challenges of a rapidly changing business environment.
The extension comes at a time when the bank is going through a period of significant transformation, with a focus on digital banking and expanding its presence across the country. The bank has also been working to improve its risk management and capital adequacy, and has been expanding its presence in the retail and corporate banking segments.
The controversy surrounding Sindhi’s extension may have been avoided if the RBI had approved the board’s recommendation for a three-year extension. However, the one-year extension is seen as a compromise between the bank’s management and the RBI.
Sindhi’s leadership has been marked by several initiatives, including the launch of a new digital banking platform, the introduction of a new mobile banking app, and the expansion of its credit card business. The bank has also been active in the area of social banking, with initiatives focused on financial inclusion and rural development.
In summary, Sangeet Sindhi, the CEO of IndusInd Bank, has been given a one-year extension by the bank’s board, despite the board’s original recommendation for a three-year extension. The extension is seen as a recognition of his efforts to transform the bank’s operations and improve its financial performance.