RBI said to have asked IndusInd Bank’s board to expand CEO search
IndusInd Bank’s search for a chief executive officer could well turn out to be a somewhat protracted exercise. The RBI may have informally asked the board to expand its CEO search, sources have told Moneycontrol.
“It’s not clear whether the earlier names proposed by the board haven’t made the cut with the regulator, or the regulator feels more candidates should be considered before zeroing in on a person. But right now, the matter is referred to the board for further consideration,” an official said on condition of anonymity. The board sent a few names in mid-June.
Some of the candidates suggested by the board may have expressed hesitation in taking up the assignment, given the complexities involved, a second source said. “Either way, it seems to have come back to square one,” the source said.
The board may be asked to look at some candidates from public sector banks and bankers of Indian origin working abroad, sources said. While the timeline IndusInd Bank’s board is working with is not clear, given the fact that the bank has to appoint a CEO by September 30, the board will likely send in more names by the end of July.
IndusInd Bank and RBI had not responded to Moneycontrol’s queries at the time of publishing this article.
Moneycontrol reported on March 25 that the bank has appointed Egon Zehnder to run the search process for the CEO.
Rajiv Anand, the soon-to-retire deputy MD of Axis Bank, Rahul Shukla, group head, corporate and business banking, HDFC Bank, who is on a sabbatical, and Anup Saha, the newly elevated CEO of Bajaj Finance, are reportedly in the running for IndusInd Bank's top job.
“While IndusInd Bank’s board has been in conversation with Anand and Saha, the outcome of these discussions is not clear yet,” a banker who didn’t want to be named.
Shukla, on the other hand, reckoned as a target-oriented banker, is on a sabbatical, the HDFC Bank website says. Neither he nor the bank has revealed the reasons for his break from work.
“The hunt for a CEO is turning out to be a long-drawn process,” said a headhunter who didn’t want to be identified. “With the extent of pain in financials tough to ascertain even now, most candidates are apprehensive about the opportunity.”
Assuming moral responsibility for the derivatives accounting lapses, Sumant Kathpalia on April 29, resigned as the CEO of IndusInd Bank.A four-member committee of executives (COE) was formed on April 30 to oversee the operations of the bank till September 30. “A decision on CEO appointment has to be made before the tenure of COE ends,” a source said.