IndusInd Bank Share Price Surge 3.5% as CEO Hunt Begins

IndusInd Bank share price gained over 3.5% on March 26 after reports suggested that the bank is hiring global recruitment firms to find new leadership, including a CEO.

Hiring Firms to Scout for Key Positions

According to sources, IndusInd Bank has approached 2 global recruitment firms—Egon Zehnder and Korn Ferry—to help find candidates for important roles. The bank is looking to replace:

• CEO & MD: Sumant Kathpalia

• Deputy MD & Executive Director: Arun Khurana (also serving as CFO)

• Chief Financial Officer (CFO): Replacement for Gobind Jain, who resigned on January 17

• Other key roles: Chief Compliance Officer (CCO) and Chief Operations Officer (COO)

Reports suggest that Egon Zehnder may focus on finding candidates for the CEO and deputy CEO roles, while Korn Ferry could handle recruitment for executive directors and business heads for commercial and consumer banking.

Stock Performance

As of 1:35 PM IST on March 26, IndusInd Bank share price stood at ₹655.85, rising by ₹18.80 or 2.95% for the day. The stock opened at ₹637.40, reaching a high of ₹662.50 and a low of ₹637.40. IndusInd Bank has a market capitalisation of ₹51,100 crore, a P/E ratio of 7.05, and a dividend yield of 2.52%. Over the past year, the stock has traded between a 52-week high of ₹1,576.35 and a 52-week low of ₹606.00.

RBI’s Alleged Directive and Bank’s Response

Last week, as per reports, the Reserve Bank of India (RBI) asked Sumant Kathpalia and his deputy to step down once replacements were approved. However, IndusInd Bank denied these claims, calling them “factually incorrect.”

Derivatives Valuation Issue

On March 10, IndusInd Bank revealed that its derivatives portfolio was overvalued by about 2.35%, amounting to approximately ₹1,500 crore due to non-compliant internal trades.

Conclusion

IndusInd Bank’s leadership transition and valuation concerns have drawn market attention. Investors will closely monitor upcoming executive appointments and regulatory developments.

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