InvestorQ : How will the new CEO appointment impact the future of IndusInd Bank?
Aditi Sharma made post

How will the new CEO appointment impact the future of IndusInd Bank?

Answer
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Aashna Tripathi answered.
7 months ago


The RBI has approved the appointment of Sumant Kathpalia as the next CEO of IndusInd Bank. Kathpalia will replace Romesh Sobti, who will be stepping down from the help in the third week of March. In a way, Sobti was the man who picked up an undervalued IndusInd Bank and put the book in order to create a multi-bagger over the years. However, in the last few quarters, the stock has hit a barrier with asset quality worsening and the stock pricing correcting over 45% from the peak. Kathpalia, like Sobti, is also from ABN Amro and has worked with Sobti for long. His appointment ensures that there is continuity in banking strategy but also there is hope that the new CEO will address asset quality as a top priority. In between, the name of Rajeev Sabharwal of Tata Capital was also being mooted as the likely next CEO of IndusInd. The new CEO, being an insider, will be an added advantage for the bank. However, it needs to address asset quality issues urgently.