IndusInd Bank chief Mehta could exit bank next month, say sources

His exit does not relate to the derivatives issue reported by the bank earlier this year, said a source
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Sunil Mehta, Chairman of IndusInd Bank, is expected to step down next month upon concluding his three-year term, according to industry sources.

“His departure aligns with the end of his tenure and is unrelated to the derivatives matter disclosed by the bank earlier this year,” confirmed an insider. The bank is reportedly considering appointing a seasoned banker or former government official as his successor.

An IndusInd Bank representative stated, “The Chairman and Board maintain full dedication to advancing the bank’s strategic objectives. All required disclosures will follow regulatory guidelines and timelines.”

Mehta, former leader at Yes Bank and Punjab National Bank, oversaw the institution during operational challenges following irregularities in its derivatives portfolio, which impacted financials by approximately ₹2,000 crore. This episode preceded the resignations of former CEO Sumant Kathpalia, Deputy CEO Arun Khurana, and other senior officials.

Under new MD & CEO Rajiv Anand’s leadership, the bank has strengthened its executive team with key appointments including Amitabh Kumar Singh as CHRO, Tapobrat Chaudhuri leading Bharat Financial Inclusion Ltd, and Ganesh Sankaran as Head of Wholesale Banking.

Earlier this year, Ashok Hinduja, Chairman of IIHL and IndusInd Bank promoter, noted, “Our promoter agreement allows for board nominations. After RBI approvals, we will appoint 2-3 representatives to strengthen governance.”

Published on December 10, 2025