The Reserve Bank of India (RBI) has approved the reappointment of Sumant Kathpalia as the Managing Director (MD) and Chief Executive Officer (CEO) of IndusInd Bank for a period of one year, from March 24, 2025, to March 23, 2026. This decision comes after the bank’s board had initially sought a three-year term, which was previously sanctioned for two years by the RBI. This is the second time the RBI has cut short Kathpalia’s tenure, having earlier approved a two-year term in 2022.
Kathpalia, who has over 37 years of experience, took charge as MD and CEO of IndusInd Bank in 2020. Prior to joining the bank, he worked at Citibank, Bank of America, and ABN AMRO. Under his leadership, IndusInd Bank has focused on strengthening its balance sheet, expanding its retail deposit base, diversifying its portfolio, maintaining capital adequacy, and driving digital transformation. He has also worked on improving investor confidence and governance frameworks.
Kathpalia has led the bank’s core executive team, overseeing its turnaround and focusing on business growth, profitability, digitization, and compliance. The bank’s filing highlighted his role in strengthening the bank’s overall performance, improving it’s governance framework and driving digital transformation. Despite the shorter tenure, Kathpalia’s reappointment is seen as a vote of confidence in his leadership and his ability to steer the bank towards growth and success.