Shares of IndusInd Bank rallied on the bourses on reports that the Reserve Bank of India (RBI) is likely to extend CEO Sumant Kathpalia’s term by three years.
On the BSE, the private sector lender ended at Rs 1,174.40 — a gain of Rs 53.25, or 4.75 per cent, over the last close.
The rally came after a CNBC TV-18 report said that the banking regulator is likely to extend Kathpalia’s tenure by another three years.
His term at IndusInd Bank comes to an end on March 24. The report added that the RBI is set to extend his term as it wants stability, even as Kathpalia’s performance as CEO also has been good.
In September last year, the board of IndusInd Bank had approved the re-appointment of Kathpalia as managing director and chief executive officer for three years with effect from March 24, 2023.
It had said that the re-appointment is subject to approval from the lender’s shareholders and the RBI.
While the approval from the RBI is yet to come through, it is likely to happen over the next few days.
Kathpalia was appointed as MD & CEO of IndusInd Bank in March 2020.
Before joining IndusInd Bank, Kathpalia worked with large multi-national banks such as Citibank, Bank of America and ABN AMRO.
At IndusInd Bank, he has played a key role in turning it around. He also has been a key member of the top-level executive committee looking at bank-wide financial management, managing investor relations, and evaluating inorganic growth opportunities.