IndusInd Bank refutes reports of RBI directive on CEO appointment

IndusInd Bank Ltd., the Mumbai-based private lender, has on Monday, July 21, called the reports, suggesting that the Reserve Bank of India (RBI) issued an informal directive on the company's CEO appointment search, as being “false and speculative”.

The bank has been in the spotlight after its top management quit over the fourth quarter due to the accounting discrepancies that were discovered. The bank has formed an interim committee to oversee day-to-day operations till a new MD & CEO is appointed.

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Firmly denying the report, IndusInd told CNBC-TV18 that the appointment of a new MD & CEO, including seeking relevant approvals, is in process, and the bank will continue to make necessary disclosures as required under law and at the appropriate stage.

On July 19, the bank in a stock exchange filing announced it will be holding a board meet on Wednesday, July 23, to consider and approve proposals related to issuing long-term bonds or debt securities in any permissible mode on a private placement basis. IndusInd will also consider and approve proposals related to augmentation of capital through further issue of placement of securities, including ADRs, GDRs, QIPs, as subject to approval from the shareholders and regulators.

According to people familiar with the matter, Rajiv Anand, currently Deputy Managing Director at Axis Bank; Anup Saha, Managing Director of Bajaj Finance; and Rahul Shukla, Group Head of Commercial and Rural Banking at HDFC Bank, who is currently on sabbatical were being considered for the IndusInd board for the role, CNBC-TV18 reported on June 27.

Separately, the bank’s board will meet next Monday, July 28, to consider its results for the April-June quarter.

Shares of IndusInd Bank are trading at ₹851.9, down 2.1% on the BSE today. The stock has as much as 12% in the previous six months.