IndusInd Bank chairman to step down in 2026 amid ongoing leadership overhaul

IndusInd Bank chairman Sunil Mehta will step down when his term ends in January 2026, marking the lender’s third major leadership change since it reported its largest-ever quarterly loss earlier this year.

Mehta informed the board he would not seek reappointment after January, Reuters reported, citing people familiar with the matter. His exit extends a period of upheaval at the private-sector lender following governance failures and accounting lapses that triggered a ₹2,329 crore loss in the March quarter.

The reshuffle began in April, when then chief executive Sumant Kathpalia and his deputy Arun Khurana resigned after the discovery of ₹1,960 crore in accounting discrepancies linked to the bank’s derivatives book. The errors drew criticism from investors, who accused the board of weak oversight and slow disclosure.

Mehta, who became chairman in January 2023, previously led Yes Bank during its 2020 restructuring and earlier served as managing director and chief executive of Punjab National Bank at the time of the $1.8 billion fraud involving Nirav Modi and Mehul Choksi. He has also chaired the Indian Banks’ Association.

The governance concerns at IndusInd have prompted broader board-level changes. A representative of the Hinduja family, the bank’s largest shareholder group, told the Economic Times last week that the board was undergoing a restructuring and that new directors would be appointed. Another director, Akila Krishnakumar, is also set to leave in 2026.

Since senior banker Rajiv Anand took over as chief executive in August 2025, the bank has accelerated management changes. This week, the lender named Ganesh Sankaran as head of wholesale operations, adding to a series of recent appointments including a new chief financial officer, Viral Damania; a new human resources chief, Amitabh Kumar Singh; and several other senior executives.

Anand told Reuters last month that the bank aimed to restore accountability and correct organisational deficiencies before the start of the next financial year. Analysts said the continued reshuffling underlined the scale of the operational and governance reset required to stabilise performance.

With Mehta’s departure approaching, attention will shift to how quickly the board can complete its restructuring and whether the leadership changes will translate into stronger controls and improved investor confidence.