The same board, which missed these crucial accounting issues at the bank (an audit committee of the board is required to review numbers before releasing them), is now talking about hiring a new CEO.
During an analyst call hosted by the bank on Wednesday, Non-executive Chairman Sunil Mehta said that the board was in advanced stages of finding suitable CEO candidates. These names would be submitted to the Reserve Bank of India well before the deadline of June 30 and the regulator will finally decide who will take over.
Will IndusInd Bank have to turn to a public sector banker to come in and take over the lender? Its peers have done that and successfully so. While growth generally takes a back seat, stability is usually a great outcome in these situations. But the final call in the matter will still be with the RBI.
This brings us to the regulator. So far, the RBI has largely been quiet about the ongoing issues at IndusInd Bank, save for a March 15 statement aimed at calming depositors from withdrawing too much from their accounts.
In the past, in situations such as Yes Bank, RBL Bank and even small lenders like Dhanlaxmi Bank, the RBI has immediately placed an observer director on the board. This is to have direct overview of how things are being conducted at the bank. No such appointments have been made at IndusInd Bank yet.
Would the RBI do that next?
