The board at IndusInd Bank Ltd. is still working on a shortlist of potential CEO candidates, as it looks to close the process in a few weeks. According to people in the know, the lender's board is currently talking to potential candidates and has not arrived at a shortlist of two or three preferred candidates who will take over.
The board is prioritising a clean image and proven track record in governance, for the role, the people quoted above said. The potential candidates should not have any greed in their psyche, is the board's defining criteria.
While the board may tap a public sector banker for the role, private bankers are still an option, the people said.
Names will likely be finalised in a few weeks, after which the top two or three candidates will be recommended to the Reserve Bank of India. The regulator will take a final call on who will actually lead IndusInd Bank.
According to the people quoted above, the board is focussed on ensuring a smooth transition at IndusInd Bank and ensure that an appropriate leader is selected at the bank.
Last evening, IndusInd Bank disclosed that it had reason to suspect that fraud has been perpetrated against it. The bank's independent auditor said that certain senior officials at the bank and former key managerial personnels were involved in concealing facts from the board and the auditors.
Both the board and the auditors will approach appropriate authorities to file a complaint and get the matter further investigated. In the quarter ended March 31, IndusInd Bank reported its largest ever quarterly loss at Rs 2,329 crore, as the impact of various accounting lapses added to the hit.
On March 10, the bank first said that it had detected certain discrepancies in the derivatives trading account of the bank. This led to a financial hit of Rs 1,960 crore. Incorrect interest income on certain microfinance loans led to a further hit of Rs 674 crore. Additionally, fee income from these loans also added a hit of about Rs 173 crore.
The bank also found that certain microfinance loans were being wrongly classified as standard and have now been reclassified as non-performing assets. The provisioning due to this reclassification and incorrect fee income collected have all resulted in a financial hit of nearly Rs 2,000 crore.
The board is prioritising a clean image and proven track record in governance, for the role, the people quoted above said. The potential candidates should not have any greed in their psyche, is the board's defining criteria.
While the board may tap a public sector banker for the role, private bankers are still an option, the people said.
Names will likely be finalised in a few weeks, after which the top two or three candidates will be recommended to the Reserve Bank of India. The regulator will take a final call on who will actually lead IndusInd Bank.
According to the people quoted above, the board is focussed on ensuring a smooth transition at IndusInd Bank and ensure that an appropriate leader is selected at the bank.
Last evening, IndusInd Bank disclosed that it had reason to suspect that fraud has been perpetrated against it. The bank's independent auditor said that certain senior officials at the bank and former key managerial personnels were involved in concealing facts from the board and the auditors.
Both the board and the auditors will approach appropriate authorities to file a complaint and get the matter further investigated. In the quarter ended March 31, IndusInd Bank reported its largest ever quarterly loss at Rs 2,329 crore, as the impact of various accounting lapses added to the hit.
On March 10, the bank first said that it had detected certain discrepancies in the derivatives trading account of the bank. This led to a financial hit of Rs 1,960 crore. Incorrect interest income on certain microfinance loans led to a further hit of Rs 674 crore. Additionally, fee income from these loans also added a hit of about Rs 173 crore.
The bank also found that certain microfinance loans were being wrongly classified as standard and have now been reclassified as non-performing assets. The provisioning due to this reclassification and incorrect fee income collected have all resulted in a financial hit of nearly Rs 2,000 crore.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR