IndusInd Bank Names Rajiv Anand as New MD & CEO, Confirming Earlier CNBC-TV18 Report
Shares of IndusInd Bank Ltd., a Mumbai-based private sector lender, jumped by up to 6% on Tuesday, August 5, following the official announcement of Rajiv Anand as the bank’s new Managing Director and Chief Executive Officer.
The appointment, disclosed late Monday night, validates a CNBC-TV18 report from June 27. As per the exchange filing, Anand’s three-year term will extend until August 24, 2028.
Background of the Appointment
Before this new role, Rajiv Anand held the position of Deputy MD at Axis Bank. During his tenure, he was in charge of wholesale banking and played a significant role in pushing the bank’s digital initiatives.
The appointment follows a period of uncertainty for IndusInd Bank, which had been operating without a full-time MD & CEO since April.
Sumant Kathpalia had stepped down, assuming moral responsibility for an internal derivatives portfolio accounting error that had significantly impacted the bank’s share price.
Though the stock has since rebounded, the issue led the bank to post its first quarterly net loss in 20 years during the March quarter. It returned to profitability in the latest quarter, with performance above analyst expectations but still lower than last year’s figures.
CNBC-TV18 had earlier reported that Anand was among three candidates shortlisted by IndusInd Bank for the top post, alongside Rahul Shukla of HDFC Bank and Anup Saha, the former chief of Bajaj Finance.
Market and Brokerage Reactions
Jefferies, a global brokerage firm, sees Anand’s appointment as a major positive for the bank, citing his long association with Axis Bank.
The firm emphasized that a reorganization of the senior management at IndusInd Bank may be the first major step under Anand’s leadership. They highlighted expectations for better asset and operating efficiency, increased fee income, and stronger credibility.
Jefferies has maintained a “buy” rating on IndusInd Bank, with a target price of ₹920 per share, suggesting a potential upside of 17%. Following the announcement, the bank’s shares surged 5.5% to ₹847.7.
The stock had already bounced back by 33% from its 52-week low of ₹606, a drop that occurred after the accounting issues first surfaced earlier this year.
RBI Approval and Leadership Transition
The Reserve Bank of India approved Anand’s candidacy for the role. His official tenure is scheduled to begin on August 25, 2025.
During the period without a permanent CEO, the bank’s leadership was managed by a senior committee that included Soumitra Sen, the head of consumer banking, and Anil Rao, the chief administrative officer.
Anand, 59, retired from Axis Bank on August 3 after completing his third term as a board director. He was selected from a final pool of three candidates.
A chartered accountant by qualification, Anand brings over 35 years of experience spanning asset management, retail, and wholesale banking.
He started his career with the Axis Group in 2009 as the founding MD of Axis Asset Management Co., before moving to Axis Bank in 2013 as president of retail banking. By 2018, he was in charge of wholesale banking.
Impact of Derivatives Missteps
IndusInd Bank came under intense scrutiny following an INR 1,960-crore loss linked to misreported internal derivative trades. The bank clarified that these losses resulted from accounting errors, particularly in cases where derivative contracts were terminated prematurely.
These missteps led to the inflation of notional profits and misrepresented the portfolio’s condition over several reporting periods.
With Rajiv Anand’s appointment, the bank is now expected to focus on addressing internal challenges and restoring investor confidence.
Brokerage Outlook and Strategic Challenges
On Tuesday morning, IndusInd Bank shares were trading at ₹842.2, a 4.7% increase on the NSE.
IndusInd Bank Chairman Sunil Mehta had earlier stated during the Q1 FY26 investor call that the bank was committed to strengthening its senior leadership, both from within and outside the organization.
Domestic brokerage firm Emkay Global commented that Anand’s experience across retail and wholesale banking, digital strategy, and capital markets—built through stints at institutions like StanC, ANZ Grindlays, HSBC, and Axis Bank—makes him well-suited for the position.
They noted that a key concern had been the potential appointment of a public sector banker. Emkay viewed Anand’s selection as a private sector veteran as a favorable long-term move.
However, Emkay emphasized that Anand faces the difficult task of rebuilding the leadership team, realigning the bank’s asset-liability mix, reinforcing governance, and regaining trust.
The firm noted that strategic clarity may take time to emerge. In the interim, stock performance will likely depend on near-term developments in asset quality and margins, while concerns about potential “kitchen sinking” persist.
Emkay reiterated a “reduce” rating with a target price of ₹700 per share.
