The Reserve Bank of India (RBI) has given extra time to IndusInd Bank to find its new chief following the resignation of Sumant Kathpalia.

The regulator has extended the tenure of the oversight committee managing IndusInd Bank by one month until 28 August.

The panel was formed after the incumbent managing director and CEO Kathpalia resigned on 29 April, taking moral responsibility of accounting lapses in the derivatives portfolio. The financial impact of those lapses was estimated at Rs 1,960 crore. 

The tenure of the committee was until 28 July 2025.

"We now wish to inform that the RBI vide its letter dated July 25, 2025, has granted its approval for extension of tenure of the Committee of Executives for a further period of one month, with effect from July 29, 2025 up to August 28, 2025 or until the new MD & CEO is appointed and assumes charge, whichever is earlier," IndusInd Bank said in a regulatory filing on Friday.

The committee, formed with RBI’s approval, comprises Soumitra Sen (Head – Consumer Banking) and Anil Rao (Chief Administrative Officer) as its members. It was tasked to oversee the bank’s operations for three months from 29 April or until a new CEO took charge.

In March, the private sector lender disclosed that the accounting lapses in its derivatives book was estimated to have an adverse impact of 2.35% of the bank's net worth as of December 2024.

Meanwhile, IndusInd Bank in a separate regulatory filing said chief human resources officer Zubin Mody has resigned to pursue new opportunities outside the organisation.