Private sector lender IndusInd Bank on Monday said Sumant Kathpalia, who has been designated as managing director and chief executive, will take over the reins from veteran Romesh Sobti, who has retired after completing his mandated tenure.
"The board of directors has today noted that Romesh Sobti's tenure as managing director and CEO of the bank would conclude as at the close of today, and that Sumant Kathpalia would take charge from tomorrow as additional director, designated as managing director and CEO of the bank for a period of three years, with effect from March 24, 2020," Indusind Bank said in a regulatory filing.
Kathpalia's appointment as MD & CEO will be placed for approval of the shareholders at the ensuing annual general meeting.
"In accordance with SEBI instructions of June 14, 2018 to the stock exchanges, we affirm that Sumant Kathpalia is not debarred from holding office of the Managing Director & CEO by virtue of any order of SEBI or of any other Authority," Indusind Bank said.
Bank's long term MD and CEO Sobti retired on Monday as he turned 70. The RBI norm does not allow the position to be held by anyone beyond 70 years.
Sobti was at the helm of affairs of the bank since taking over the position of MD and CEO on February 1, 2008.
The bank in late February had announced elevation of its consumer banking head Kathpalia as the new managing director and chief executive with effect from March 2020.
Notably, Kathpalia takes charge of the bank at a time when there is a deep mistrust among customers in private sector lenders and rumour morgering keeps simmering in markets, which has caused severe beating to various lenders post YES Bank debacle.
However, many private sector lenders have time and again issued statements in a bid to quell market sentiments and restore faith among customers. Kathpalia is a career banker with over 33 years of experience in large multinational banks such as Citibank, Bank of America, ABN AMRO and IndusInd Bank.
He has successfully held several leadership roles over his career with a focus on driving business growth and innovation.
He has diversified experience across various functions including business strategy, sales and distribution, operations, systems, risk and credit management and financial management.
Stock of Indusind Bank closed at Rs 336.55 apiece on the BSE, down by over 23 per cent.
Deccan Herald is on WhatsApp Channels| Join now for Breaking News & Editor's Picks