IndusInd Bank said its nomination committee had finalised a potential candidate for the post of MD and CEO and forwarded an application to the RBI seeking approval.
- Amid reports that Rajiv Sabharwal of Tata Capital is in fray for the top job at IndusInd Bank, the private lender today clarified that “speculation around this name as a contender for the position mentioned is completely untrue.”
- Chief Executive Officer Romesh Sobti, 69, is due to stand down at the end of March after a dozen years at the helm.
- “As previously advised to the exchanges, the bank’s Nomination and Remuneration Committee and Board had considered and finalised a potential candidate for the post of MD and CEO and forwarded an application to the RBI seeking approval for the appointment. That position remains unchanged,” IndusInd Bank said in a communication to the exchanges today.
Effects on the Market
- IndusInd Bank shares were down about 2% at ₹1,112 on BSE today, as compared to 1% loss in Nifty Bank index.
- The bank’s shares are down sharply from their 52-week highs of ₹1,835, hit in March last year. Concerns about the bank’s exposure to the telecommunications sector as well as to real estate have weighed on the stock.
- IndusInd was the best performing stock on the Bankex index from early 2008, when Sobti took over, until September 2018.
- Also of concern is how IndusInd will manage these bad loan challenges after Sobti’s departure.
- 72% of analysts tracking IndusInd still recommend the shares but the ratio of ‘buy’ calls has dropped to the lowest in a decade, according to data compiled by Bloomberg. (With Agency Inputs)
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