Private sector lender IndusInd Bank may tap Axis Bank Deputy MD Rajiv Anand for the role of MD and CEO after Sumant Kathpalia resigned from the post, taking moral responsibility for the discrepancies found in the lender’s derivatives portfolio, according to sources.

“Obviously, Rajiv would be one of the candidates. Whether he wants (to be the CEO) is up to his discretion. The size of IndusInd Bank, its brand, is very different from Axis. He came from a mutual fund background, he is a CA, and handled retail, wholesale segments and understands treasury quite well,” a source said.

Last month, Axis Bank informed exchanges that Anand will be retiring from his post, effective August 3 this year. Post his retirement, he will continue to be the Non-Executive Chairperson of Axis Max Life Insurance, the lender said. After the announcement of his retirement, Anand posted on X, “What an amazing run it’s been! Am ever grateful for the opportunities I got over the years! Now let’s see what the future holds!”

“In case of RBL Bank, Bandhan Bank and Yes Bank, the market was expecting a public sector banker to be appointed as chief. Things at IndusInd Bank are quite different. There is no fraud; it was an accounting issue,” said another source.

“This bank needs someone with retail experience due to higher exposure towards vehicle finance and micro loans. While there are media reports floating around, including CSB Bank chief Pralay Mondal, Shanti Ekambaram from Kotak Mahindra Bank and Anup Bagchi from ICICI Prudential Life Insurance, Rajiv appears to be the most suited candidate for this job,” they said.

Emails to IndusInd Bank, Axis Bank, CSB Bank, Kotak Mahindra Bank and ICICI Prudential Life Insurance did not elicit any formal response till press time.

Another senior official at a private bank said there have been talks around Anand being the preferred candidate for IndusInd Bank top job for some period now.

On April 29, Kathpalia resigned from the position of IndusInd Bank CEO with immediate effect.

“I wish to submit my resignation from the services of the bank in relation to the ongoing derivatives discussion. I undertake moral responsibility, given the various acts of commission/omission that have been brought to my notice,” he said in his letter to the board of directors.

His resignation came a day after the bank’s deputy CEO and ED, Arun Khurana, resigned from the bank, as he had oversight on the bank’s internal derivatives trade, where discrepancies were found.

Subsequently, the bank received the Reserve Bank of India’s approval for appointing a committee of executives to dispense the bank CEO’s duties till a new CEO is appointed.

Discrepancies found in IndusInd Bank’s derivative portfolio could have an impact of around ₹2,000 crore on the bank’s balance sheet.