IndusInd Bank's Recovery: A New Chapter Under RBI's Watchful Eye
Reserve Bank Governor Sanjay Malhotra comments on the recovery of IndusInd Bank following recent financial troubles, emphasizing accountability with the resignation of MD and CEO Sumant Kathpalia. The bank is taking steps to rectify past accounting missteps and is currently stable, according to the RBI.
- Country:
- India
In a statement on Friday, Reserve Bank Governor Sanjay Malhotra expressed optimism about the recovery trajectory of fraud-impacted IndusInd Bank. Despite recent turmoil, the private lender is currently stabilizing, following a series of decisive corrections.
The bank, which recently suffered its worst quarterly performance, incurred losses partly due to lapses in its microloan segment. Amidst this, MD and CEO Sumant Kathpalia's resignation was highlighted by Malhotra as a significant moral accountability move, offering reassurance about leadership responsibility.
Deputy Governor Swaminathan J remarked on the bank's readiness to ensure future compliance and rectify discrepancies, noting the institution's proactive measures to safeguard consumer trust and maintain systemic stability.
(With inputs from agencies.)
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