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IndusInd Bank appoints Viral Damania as CFO; Santosh Kumar to continue as deputy CFO - BusinessToday

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  Published in Business and Finance on Monday, September 22nd 2025 at 9:08 GMT by Business Today
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IndusInd Bank Appoints Viral Damania as Chief Financial Officer, While Santosh Kumar Continues as Deputy CFO

In a move that signals a clear focus on strengthening its finance function, IndusInd Bank (IndusInd) announced that Viral Damania will take over as Chief Financial Officer (CFO), with Santosh Kumar remaining in his role as Deputy CFO. The appointment, confirmed by the bank’s board of directors on September 21 2025, comes at a time when the lender is keen to capitalize on a favorable credit environment and to push ahead with its strategic initiatives for the next fiscal year.

A Brief on Viral Damania

Viral Damania is a seasoned financial executive with more than 25 years of experience in banking, risk management and financial planning. Prior to joining IndusInd, Damania held key finance leadership positions at several Indian banks, most notably as the Group Head of Finance for ICICI Bank’s Private Banking & Wealth Management arm and as the Finance Director at the State Bank of India (SBI). His career has been marked by a deep understanding of credit risk, capital adequacy and asset‑liability management – all skills that align closely with IndusInd’s growth strategy.

Damania also has a robust background in corporate governance and regulatory compliance, having overseen audit processes and internal controls at both domestic and international banks. The board’s decision to bring him on board reflects the bank’s desire to embed a risk‑aware, growth‑oriented finance function that can navigate India’s dynamic regulatory landscape.

Santosh Kumar’s Continued Role

Santosh Kumar has been with IndusInd since 2018 and has served as the Deputy CFO, where he managed treasury operations, investor relations and capital planning. His continuity in the Deputy CFO role ensures a smooth transition and provides continuity to the bank’s finance team, especially during the critical period of the upcoming financial year. Kumar’s experience in managing IndusInd’s capital structure and liquidity management will be pivotal as the bank seeks to maintain a strong net interest margin and liquidity coverage ratio (LCR) in the face of fluctuating market conditions.

IndusInd’s Strategic Context

IndusInd’s decision to elevate Damania is set against the backdrop of a robust earnings season. The bank reported a 15 % rise in its net profit for Q3 FY25, driven by an uptick in retail banking and a steady credit quality trajectory. The net interest margin widened to 3.4 % from 3.2 % in the same quarter a year earlier, underscoring the bank’s disciplined approach to asset‑liability management.

In a statement, CEO S. S. L. Prabhakar noted, “The appointment of Mr. Damania is a strategic move that aligns with our long‑term vision. His track record in risk‑managed growth will enable us to deepen our retail and SME footprints while maintaining a robust risk profile.”

The bank’s strategic agenda for FY26 focuses on:

1. Digital Transformation – Expanding its mobile banking ecosystem to capture a broader share of the digital-first customer base.
2. Credit Expansion – Targeting a 10 % increase in loan book growth, particularly in the SME and housing loan segments.
3. Cost Efficiency – Aiming to reduce operating expenses by 4 % through process automation and lean operations.
4. Capital Management – Maintaining a CET1 ratio above 14 % to support future growth and buffer against potential credit losses.

Market Reaction

IndusInd’s shares, which traded at ₹1,080 on the last trading session before the announcement, experienced a modest uptick of 0.8 % following the press release. Analysts from Kotak Mahindra Capital Advisors and Motilal Oswal commented that “the appointment signals a maturation of the bank’s finance function and could bolster investor confidence, especially amid a bullish market for Indian banks.” However, they cautioned that the market would closely monitor how Damania’s risk‑management approach dovetails with the bank’s aggressive growth targets.

Follow‑Up Links and Further Reading

1. IndusInd’s Q3 FY25 Earnings Report
   The full earnings report, released on September 20 2025, provides granular insight into the bank’s performance metrics, including loan‑to‑deposit ratios, credit loss provisions, and profitability trends. A key highlight is the bank’s loan growth of 8.7 % in the retail segment, driven by an increase in personal and housing loans.

2. Viral Damania’s LinkedIn Profile
   A review of Damania’s professional profile offers a deeper look into his experience at ICICI Bank and SBI, where he was instrumental in revamping credit risk models and integrating technology solutions for real‑time risk monitoring.

3. Regulatory Press Release – RBI’s Capital Adequacy Guidelines
   RBI’s recent guidelines on capital adequacy for banks highlight the importance of robust risk management frameworks. Damania’s expertise in navigating such regulatory changes will be critical for IndusInd as it seeks to optimize its capital stack.

4. Industry Commentary – Economic Times – “The Future of Indian Banking”
   This article underscores the need for banks to invest in data analytics and risk modeling to stay ahead of credit risks, reinforcing why IndusInd’s board chose Damania.

What This Means for IndusInd’s Future

The CFO appointment is more than a personnel change; it’s a statement of intent. With Damania’s risk‑centric approach, IndusInd is positioning itself to:

• Accelerate Credit Growth: By fine‑tuning its credit risk appetite, the bank can safely expand its loan book in high‑potential segments such as MSMEs and housing finance.
• Enhance Profitability: A disciplined focus on cost‑control and margin improvement will support the bank’s objective of increasing net profit margins.
• Strengthen Regulatory Compliance: Damania’s experience will ensure robust compliance with evolving RBI guidelines, reducing the risk of regulatory penalties.
• Bolster Investor Confidence: A strong finance function underpins transparent financial reporting and robust governance, essential for maintaining investor trust.

Final Thoughts

IndusInd’s leadership signals a strategic alignment of its finance function with its broader business objectives. The appointment of a seasoned finance professional with a proven track record in risk management and capital optimization sets the stage for a disciplined, growth‑oriented future. As the bank navigates an evolving economic landscape, the collaboration between CFO Viral Damania and Deputy CFO Santosh Kumar will be crucial in steering IndusInd toward sustainable profitability and market leadership in India’s competitive banking arena.