IndusInd Bank Shares Dip Amid RBI's Leadership Tenure Decision

IndusInd Bank shares fell nearly 4% after RBI extended CEO Sumant Kathpalia's term by only one year, instead of the three years proposed. This decision, perceived as a sign of leadership uncertainty, led to further declines in stock prices, with a notable drop reaching 52-week lows.

In a development rattling investors, IndusInd Bank's shares dropped nearly 4% after the Reserve Bank of India extended CEO Sumant Kathpalia's term by just one year, despite the board's request for a three-year term.

The shares suffered their fourth consecutive session decline, plummeting 3.86% to Rs 900.60 on the BSE and 3.71% to Rs 901.95 on the NSE, briefly touching their 52-week lows.

Traders exchanged 1.60 crore shares on the NSE and 4.49 lakh shares on the BSE amidst concerns that the short extension signals leadership instability, potentially affecting the bank's future prospects.

(With inputs from agencies.)