IndusInd Bank To Focus On Building Management Team After Clearing CEO Hurdle

IndusInd Bank Ltd will now focus on strengthening its senior leadership team following the appointment of Rajiv Anand as managing director and chief executive officer, a person familiar with the matter told NDTV Profit.

The Reserve Bank of India approved Anand’s three-year term as CEO, the bank said in a stock exchange filing late Monday.

The lender plans to fill key management positions, including those of treasury head, chief financial officer, and internal audit chief, the person quoted above said, adding that these roles have remained vacant in recent months due to resignations and upcoming retirements, and the bank has mandated headhunting firms to identify candidates.

The appointments are expected to be finalised in the coming weeks, the person quoted above said.

The bank is also working to address governance and control gaps, the person added. While most of this will be handled internally, IndusInd may engage external advisers where needed. Rebuilding stakeholder confidence—particularly with the Reserve Bank of India—remains a key priority, the person quoted above said.

In March, the bank disclosed a Rs 2,000 crore loss linked to a derivatives accounting portfolio. Then managing director and CEO Sumant Kathpalia and former deputy CEO Arun Khurana said the matter had been under review since October 2024.

However, subsequent findings suggested that both executives had allegedly been aware of the issue for a longer period and had sold shares before the disclosure. They stepped down from their roles in April.

The bank also uncovered significant accounting issues in its microfinance portfolio, resulting in further losses. For the quarter ended in March, IndusInd reported its biggest-ever quarterly loss of Rs 2,329 crore. In the June quarter, it returned to profitability, posting a net profit of Rs 604 crore after adjusting for one-time charges.