After CEO exit, RBI okays IndusInd executives' panel to run the show

The Reserve Bank of India (RBI) has approved IndusInd Bank's request to form an executive committee to discharge the duties and responsibilities of the chief executive officer (CEO) for a period of maximum three months or till a new CEO takes charge, whichever is earlier.

- SUBRATA PANDA

The executive committee will oversee the operations of the Bank, under the oversight and guidance of the Oversight Committee of the Board. The oversight panel, which is chaired by the Chairman of the Bank Sunil Mehta, has chairs of the Audit Committee, the Compensation and Nomination & Remuneration Committee, and the Risk Management Committee as members, the private sector lender informed the exchanges on Wednesday.

"Based on the RBI approval, the Board has constituted such 'Committee of Executives' to oversee the operations of the Bank, under the oversight and guidance of the Oversight Committee of the Board till a new MD&CEO of the Bank assumes charge or a period of three months from the date of relieving the incumbent MD&CEO, whichever is earlier," the lender said. The development follows resignation of MD&CEO Sumant Kathpalia on Tuesday, citing "moral responsibility" for "various acts of commission/omission" following accounting lapses that resulted in a loss of nearly 2,000 crore to the Bank.