In six months, IndusInd Bank could have a new CEO to replace Sumant Kathpalia. The Central Bank will choose Kathpalia’s replacement once the possible names are given to the Reserve Bank of India (RBI).

According to a report by NDTV Profit, the board must find a successor by October. It is unclear, however, if any internal candidates would be taken into consideration or whether just external names will be included on the shortlist.

Ordinarily, the board of a bank is required to provide the regulator with the names of prospective CEOs at least six months before to the expiration of the incumbent’s term.

The RBI is waiting for an accountability exercise to be finished before acting, the article said, citing sources. The regulator will then take action against the individuals involved in the event that any extra_ s ou extra_ i d_2> accounts are discovered at Induextra_ b d_2>Bank.

IndusInd Bank said on Thursday that it has hired a third-party, expert company to look into irregularities in its derivatives portfolio. The bank said last week that it had found irregularities in its derivatives portfolio that might affect around 2.35 percent of its December 2024 net worth.

This impartial business will carry out a thorough examination to determine the underlying cause of the newly discovered accounting inconsistencies, the bank stated in a statement to the stock markets. In light of current accounting rules, this business will evaluate the accuracy and significance of the derivative contracts’ accounting treatment.

“To conduct a comprehensive investigation to among other things, identify the root cause of the discrepancies, assess the correctness and impact of the accounting treatment of the derivative contracts with regard to the prevailing accounting standards/Guidance, identify any lapses and establish accountability,” the filing added, was the decision made by the Board of Directors to hire an independent professional firm.

Following recent rumors about the financial health of IndusInd Bank, the RBI has reassured depositors of the bank’s stability.