IndusInd Bank shares tank 30% as Romesh Sobti retires as MD & CEO

NEW DELHI: Shares of IndusInd Bank tank 30 per cent in Tuesday's trade after Romesh Sobti retired as MD & CEO of the private sector lender.

Sumant Kathpalia, who has been designated as managing director and chief executive, will take over the reins from the veteran banker.

On Tuesday, the stock fell 30 per cent to hit a low of Rs 302.90 on BSE.

Kathpalia's appointment as MD & CEO will be placed for approval of the shareholders at the ensuing annual general meeting.

Sobti retired on Monday as he turned 70. The RBI norm does not allow the position to be held by anyone beyond 70 years.

Sobti was at the helm of affairs of the bank since taking over the position of MD and CEO on February 1, 2008.

The bank in late February had announced elevation of its consumer banking head Kathpalia as the new managing director and chief executive with effect from March 2020.

Notably, Kathpalia takes charge of the bank at a time when there is a deep mistrust among customers in private-sector lenders and rumour mongering keeps simmering in markets, which has caused severe beating to various lenders post YES Bank debacle, PTI reported.

However, many private-sector lenders have time and again issued statements in a bid to quell market sentiments and restore faith among customers.