IndusInd Bank chairman to step down in January amid organisational overhaul, sources say

MUMBAI: India’s IndusInd Bank Chairman Sunil Mehta will step down after his term concludes in January, two sources with direct knowledge of the matter said, marking the latest leadership change at the private lender.

The bank reported its largest-ever quarterly loss in the three months ended March 31, following a $230 million hit to its accounts, amid governance and accounting failures that prompted the departure of former CEO Sumant Kathpalia and Deputy CEO Arun Khurana earlier this year.

IndusInd Bank’s board has faced criticism from investorsover  shortfalls in oversight and delay in disclosing the accounting lapses in its derivative portfolio, which led to the hit to the bank’s accounts.

Sunil Mehta, who has been the chairman of IndusInd since January 2023, has informed the board about his desire to step down at the end of his term, the sources, who declined to be identified as the decision has not been made public yet, said.

Mehta is the former chairman of Yes Bank, which underwent restructuring in 2020, and also of the state-owned Punjab National Bank which was hit with a $1.8 billion fraud.

An IndusInd Bank spokesperson told Reuters that the bank’s chairman and the board “remain fully committed to leading the organisation in line with its strategic priorities” and the lender will “continue to make necessary disclosures in accordance with applicable laws and at the appropriate stage.”

A.P. Hinduja, a member of the UK-based Hinduja family, which is the largest shareholder in IndusInd Bank, told the Economic Times last week that the board was undergoing a restructuring process and plans to appoint new directors.

The term of another board member, Akila Krishnakumar, also ends next year. Reuters could not determine whether her term would be extended.

ORGANISATIONAL OVERHAUL

IndusInd Bank has been undergoing an organisational overhaul since senior banker Rajiv Anand took over as its CEO in August 2025.

This week, the lender appointed Ganesh Sankaran as the head of wholesale operations. In the last three months, the bank has appointed a new chief financial officer, a chief human resources officer, and a few other senior executives.

The process of filling gaps in the organisation and fixing accountability for the accounting discrepancies will be completed by the beginning of next financial year, Anand told Reuters last month.

The lender will grow at a pace faster than the banking system and is aiming to move towards a return on assets of 1% over the next 12-18 months, he said.