The Reserve Bank of India (RBI) is likely to extend the term of IndusInd Bank’s Chief Executive Officer (CEO) Sumant Kathpalia for three years, citing sources privy to the development CNBC TV18 reported on Wednesday. According to the report, Kathpalia’s performance as a CEO is good and the RBI is likely to root for stability in IndusInd Bank, they added.
Kathpalia became bank’s MD and CEO in 2020 and now his current term ends on March 24. In September 2022, IndusInd Board had approved three-year extension for Kathpalia.
Kathpalia is a career banker with over 33 years of experience in large multinational banks such as Citibank, Bank of America, ABN AMRO, and IndusInd Bank.
He has successfully held several leadership roles over his career with a focus on driving business growth and innovation. He has diversified experience across various functions including business strategy, sales and distribution, operations, systems, risk and credit management and financial management.
IndusInd Bank clocked a massive 68.7 per cent year-on-year (YoY) jump in standalone profit at Rs 1,959 crore for quarter ended December FY23, as provisions and contingencies fell 36 per cent YoY to Rs 1,065 crore for the quarter.
Net interest income in the quarter rose 19 per cent YoY to Rs 4,495 crore. The bottom line was aided by strong loan growth and lower provisions. Provisions and contingencies declined 36 per cent YoY to Rs 1,065 crore.
Asset quality improved further during the quarter as gross non-performing assets as a percentage of total loans was down to 2.06 per cent from 2.48 per cent a year ago and 2.11 per cent a quarter ago.
Net non-performing assets as a percentage of total loans was down at 0.62 per cent from 0.71 per cent a year ago and largely stable on a sequential basis. The capital adequacy ratio as per Basel III norms, stood at 18.01 per cent as on December 31, compared with 18.06 per cent a year ago.
The lender’s consolidated net profit rose 58 per cent YoY to Rs 1,964 crore, and net interest income grew by 18 per cent YoY to Rs 4,495 crore. Consolidated net interest margin of the private sector lender improved to 4.27 per cent from 4.10 per cent a year ago and 4.24 per cent a quarter ago.