Who Is Sumant Kathpalia? Veteran Banker Facing SEBI Heat Over IndusInd Bank Woes
During five years of Sumant Kathpalia-led IndusInd Bank, the stock rallied 120% till the many troubles for the lender sprouted out from mid-March.
Sumant Kathpalia, former IndusInd Bank Ltd. chief executive officer and managing director who led India's fifth-largest private lender till a month back, has trouble brewing after the capital markets regulator barred him from the securities market on serious charges.
Since he came to the helm of the Mumbai-based bank in March 2020, the stock became a Dalal Street darling and rallied 120% within five years. That was until the first of the many troubles for the lender sprouted out.
On March 10, IndusInd Bank disclosed discrepancies in its derivatives portfolio, estimating a potential financial impact of 2.35% — approximately Rs 1,900–2,000 crore. The bank stated that it had initiated a review through an external agency, which was later revealed to be PwC. Then on April 22, the bank revealed fresh concerns related to its microfinance accounting.
Kathpalia resigned on April 29, taking "moral responsibility", a day after the bank's deputy CEO, Arun Khurana, quit.
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Sumant Kathpalia: Long Banking Career
Kathpalia is a veteran banker with over 35 years of experience across major multinational banks, including Citibank, Bank of America, and Dutch multinational ABN AMRO.
He joined IndusInd Bank 17 years ago as a key member of its leadership team, taking on various senior positions, including heading the consumer bank. In these roles, he oversaw the bank's comprehensive business strategy and execution, financial management, investor relations, mergers and acquisitions, and the evaluation of inorganic growth opportunities. He was also responsible for digitization, compliance, and governance.
As the CEO, Kathpalia was instrumental in managing investor relations, directing the bank's financial strategy, and identifying inorganic growth prospects. He was also credited with expanding IndusInd's consumer banking division and introducing several industry-first innovations to improve customer experience.
Kathpalia is a Chartered Accountant and holds a B.Com (Hons.) degree from Hindu College, Delhi University.
