IndusInd Bank Announces Leadership Transition with Arijit Basu as New Chairman
In a significant leadership development, IndusInd Bank has appointed former State Bank of India Managing Director Arijit Basu as its new Chairman. The announcement was made on Friday, 23 January, following the resignation of outgoing Chairman Sunil Mehta from the position.
Effective Date and Term Details
The appointment becomes effective from Saturday, 31 January, with Basu set to serve a three-year term. This appointment is subject to approval by the bank's shareholders, marking a formal transition in the bank's leadership structure.
Profile of the New Chairman: Arijit Basu
According to IndusInd Bank's exchange filing, Arijit Basu brings substantial banking and financial expertise to his new role. His educational background includes:
- Master's degree in Arts from the University of Delhi
- Completion of the Certified Associate course from the Indian Institute of Bankers
Basu's professional journey includes several prominent positions:
- Most recently served as Chairman of the Board of HDB Financial Services Ltd, a subsidiary of HDFC Bank Ltd
- Previously retired as Board Member and Managing Director of State Bank of India
- Served as Managing Director and CEO of SBI Life Insurance Company Ltd
Currently, Basu holds multiple directorship positions including:
- Independent Director on the boards of Prudential Plc, Peerless Hospitex Hospital Research Centre, and CleanMax Enviro Energy Solutions
- Senior Advisor to Ares Management Corporation
- Member of the Advisory Board of Razorpay Inc
Context of Leadership Change
Sunil Mehta's resignation concludes his three-year tenure as IndusInd Bank's Chairman. This leadership transition occurs during a challenging period for the private lender, which recently reported its biggest-ever quarterly loss of ₹2,328.9 crore for the three months ending March 31.
The substantial loss was primarily attributed to:
- Increased provisioning requirements
- Reduced income levels
- Ongoing governance and accounting concerns
This financial setback was followed by earlier resignations of former CEO Sumant Kathpalia and Deputy CEO Arun Khurana earlier this year, as reported by Reuters.
Governance Challenges and Investor Concerns
IndusInd Bank's board has faced significant investor criticism in recent months, particularly regarding:
- Perceived inadequate oversight mechanisms
- Delays in disclosing accounting lapses in the bank's derivative portfolio
- Negative financial impact resulting from these governance issues
Market Performance and Organizational Restructuring
The bank's shares have experienced notable challenges, dropping 10% in 2025. This performance contrasts sharply with the Nifty private bank index, which gained almost 16% during the same period, making IndusInd Bank the worst performer on this index.
In response to these challenges, IndusInd Bank has undertaken significant organizational restructuring over recent months, including appointments of:
- New Chief Financial Officer
- New Chief Human Resources Officer
- Several other senior executives across key functions
The appointment of Arijit Basu as Chairman represents a crucial step in the bank's efforts to strengthen its leadership team and address ongoing governance and performance challenges. With his extensive experience in both public and private sector banking, Basu is positioned to guide the bank through its current transitional phase and toward improved stability and growth.
