Shares of India's IndusInd Bank fell nearly 6% on Monday to their lowest level since July 2022, after the country's central bank approved a shorter extension to its CEO's tenure, raising potential leadership transition risks and business uncertainty.

This is the second consecutive time that the banking regulator has approved a shorter tenor, despite the board requesting a full three-year term

The Reserve Bank of India approved a one-year reappointment of Sumant Kathpalia as MD and CEO of IndusInd Bank, effective March 2025, reducing the tenure initially proposed by the board. Kathpalia, with 37 years of experience,

Indian private lender IndusInd Bank said on Friday it had received approval from the country's central bank to reappoint Sumant Kathpalia as its chief executive officer and managing director for a period of one year.

Sumant Kathpalia is a career banker with over 37 years of rich experience in large multi-national banks such as Citibank, Bank of America and ABN AMRO prior to joining Induslnd Bank. At IndusInd Bank,