IndusInd Bank has announced a major leadership transition with the appointment of Arijit Basu as its new Part-time Chairman, replacing Sunil Mehta whose tenure concludes on January 30, 2026. The announcement was made through a regulatory filing under SEBI Listing Regulations on January 23, 2026.

Leadership Transition Details

The bank's Board of Directors, meeting on January 23, 2026, approved the appointment based on Reserve Bank of India approval and recommendations from the Compensation and Nomination & Remuneration Committee. The transition timeline and key details are outlined below:

The Board meeting commenced at 11:48 a.m. IST and concluded discussions on the appointment proposal at 11:54 a.m. IST before proceeding to other agenda items.

Outgoing Chairman's Contributions

The Board and management expressed deep appreciation for Sunil Mehta's valuable contributions during his tenure. The bank acknowledged his steadfast leadership and unwavering support in steering the organization through challenging times. Mehta will cease to be Part-time Chairman and Director upon completion of his tenure on January 30, 2026.

New Chairman's Profile and Experience

Arijit Basu brings substantial banking and financial services expertise to his new role. His educational background includes a master's degree in arts from the University of Delhi and certification as a Certified Associate of Indian Institute of Bankers.

Professional Background

Basu's distinguished career spans several key leadership positions in the banking and insurance sectors:

• State Bank of India: Retired as Board Member and Managing Director
• SBI Life Insurance Company Ltd.: Served as MD & CEO
• HDB Financial Services Ltd.: Chairman of the Board (HDFC Bank subsidiary)

Current Board Positions and Advisory Roles

Basu currently maintains active involvement across multiple organizations:

Regulatory Compliance

The bank confirmed that Arijit Basu meets all regulatory requirements for the position. In accordance with SEBI's instructions to Stock Exchanges dated June 14, 2018, the bank verified that Basu is not debarred from holding the office of Director by virtue of any order from SEBI or other regulatory authorities.

The appointment reflects IndusInd Bank's commitment to maintaining strong governance standards and leadership continuity during this transition period. The new Chairman's extensive experience in banking, insurance, and financial services positions him well to guide the bank's strategic direction in the coming years.

IndusInd Bank is bracing for a challenging Q3FY26 performance, with leading brokerages projecting a dramatic decline in profitability. Four prominent research houses—Nuvama Institutional Equities, PL Capital, Systematix, and ElaraCapital—have released estimates indicating substantial year-on-year deterioration across key financial metrics. The bank is scheduled to announce its quarterly earnings on Friday, January 23.

Profit After Tax Projections

Brokerages are forecasting a severe contraction in PAT, with estimates ranging from a concerning 78% to 99% year-on-year decline. The projected figures reveal the extent of expected profitability pressure:

Net Interest Income Under Pressure

Net interest income is expected to face significant headwinds, with all brokerages projecting double-digit year-on-year declines. The NII estimates fall within a narrow band, indicating consensus on the challenging revenue environment:

Operating Metrics and Margin Compression

Pre-provision operating profit is expected to remain under significant pressure. ElaraCapital projects PPoP at ₹1,947.00 crore, representing declines of 46% year-on-year and 4% quarter-on-quarter. PL Capital estimates a slightly higher ₹2,118.00 crore, still reflecting substantial year-on-year contraction of 41%.

Net interest margins are facing considerable compression across estimates:

Balance Sheet and Asset Quality Outlook

Loan growth remains subdued, with both Nuvama and PL Capital projecting loans at ₹3,18,800.00 crore, representing a 13% year-on-year decline and 2% quarter-on-quarter contraction. Deposits are expected to show more resilience at ₹3,94,000.00 crore, declining 4% year-on-year but growing 1.1% sequentially.

Credit costs are anticipated to remain elevated, with PL Capital expecting a 73 basis points year-on-year increase to 2.63%, though showing sequential improvement of 58 basis points. Systematix projects provisions at ₹1,722.00 crore, potentially declining 1.2% year-on-year and 34% quarter-on-quarter, driven by expectations of lower microfinance institution slippages.

Revenue Mix and Other Income

Fee income is expected to remain broadly stable on a sequential basis. However, non-fee other income is projected to show improvement quarter-on-quarter, providing some offset to the challenging core banking metrics. The combination of margin pressure, elevated credit costs, and muted loan growth continues to weigh on the bank's overall performance trajectory.