India, March 10 -- Shares of IndusInd Bank fell to a one-year low due to the Reserve Bank of India's (RBI) decision to grant its CEO Sumant Kathpalia only a one-year extension instead of the three-year term recommended by the board.

The share's intraday low as well as 52-week low on the Bombay Stock exchange (BSE) was Rs.886.40, which was down by 5.4% from the previous close.

As of 1 pm IST, the bank's shares were trading at Rs.905.80 on the BSE. This was a drop of 3.31% or Rs.31.

This is the second consecutive time that the RBI approved a shorter tenure for Kathpalia than what the board proposed.

"This price drop was accompanied by a 12.1% surge in open interest, representing a two-month high of 5.36 million shares added," Axis Secur...