Over the past fortnight, developments at IndusInd Bank have raised several questions regarding internal management and regulatory oversight. First, the bank informed the stock exchanges that the Reserve Bank of India (RBI) had approved the reappointment of its managing director (MD) and chief executive officer (CEO) Sumant Kathpalia only for a year. This was against the bank board’s approval of a three-year term. Interestingly, this was not the first time that the regulator approved a tenure that was shorter than what the board of the bank asked for. The RBI had earlier given a two-year reappointment against the board’s approval
