IndusInd Bank said on March 7 it received approval from the Reserve Bank of India to reappoint Sumant Kathpalia as its CEO for a one-year
| Photo Credit: Special arrangement
Shares of India’s IndusInd Bank fell nearly 6% on Monday (March 10, 2025) to their lowest level since July 2022, after the country’s central bank approved a shorter extension to its CEO’s tenure, raising potential leadership transition risks and business uncertainty.
The stock fell as much as 5.9% to 881.10 rupees and was the biggest loser on the blue-chip Nifty 50 index, which is up 0.4%. IndusInd Bank said on Friday it received approval from the Reserve Bank of India to reappoint Sumant Kathpalia as its CEO for a one-year, shorter than the board-approved three-year period.
“Although the RBI has not provided any explanation for only a one-year extension, we believe it is not satisfied with progress on the conditions set by it during the earlier term extension, amid other concerns including mismanagement of the microfinance (MFI) portfolio leading to higher NPAs (non-performing assets),” brokerage Emkay said in a note.
At least six brokerages cut their price targets on IndusInd’s stock, and its median 12-month target is now 1,210 rupees, implying a 32.8% upside to the current price of about 911 rupees, per data compiled by LSEG.
Published – March 10, 2025 11:45 am IST
