Cleanup, derisking key challenges before new IndusInd MD & CEO

Consolidation of balance sheet likely to top Rajiv Anand's agenda at the bank

- SUBRATA PANDA

IndusInd Bank late on Monday night announced the appointment of veteran banker Rajiv Anand as managing director (MD) and chief executive officer (CEO) for three years, effective August 25.

The appointment has been approved by the Reserve Bank of India (RBI), but is subject to shareholder approval. Anand was one of the three recommended by the bank's board to the RBI for the position. The RBI had given the board until June 30 to submit its list of candidates for MD & CEO of the bank.

Anand's appointment as MD & CEO follows the resignation of Sumant Kathpalia, former MD & CEO of the bank, in April. Kathpalia had taken moral responsibility for the accounting lapses at the bank.

Additionally, former deputy CEO Arun Khuran had also stepped down in April over the same accounting lapses.

In Q4FY25, the bank reported a loss of ₹2,329 crore as it substantially ramped up provisions and reversed incorrectly booked revenue and income entries linked to accounting discrepancies. These were in the derivatives and microfinance segments discovered during the quarter.

During the Q1FY26 analyst call, Sunil Mehta, chairman, IndusInd Bank, said the financial impact of the legacy issue is "now behind" them. And, the bank is pursuing new priorities while building a foundation for sustainable growth.