IndusInd Bank Share Price Jumps After Appointing Rajiv Anand's As CEO And MD

IndusInd Bank's share price rose 5.55% on Tuesday after the company disclosed the appointment of Rajiv Anand as managing director and chief executive officer of the bank.

In an exchange filing posted after market hours on Monday, the bank disclosed the new development and said the Reserve Bank of India approved Anand’s three-year term as CEO.

This development comes after months of turmoil for the bank following regulatory investigations after unauthorised transactions on its derivative portfolio came into the limelight early this year.

Ever since March, when the issue first came to the public eye, the bank's stock price has declined nearly 15%. Multiple high-level executives and senior managers havesince left the bank.

However, after Anand's appointment, most analysts kept their stock rating and target prices for IndusInd Bank unchanged. Notably, 24 analysts have a sell call on the stock, while only seven have a buy and 14 have a hold call.

Anand will take charges as MD and CEO from Aug 25 for a period of three years.

A source familiar with NDTV Profit said that the lender plans to fill key management positions, including those of treasury head, chief financial officer, and internal audit chief, the person.

The scrip rose as much as 5.55% to Rs 848.70 apiece. It pared gains to trade 4.87% higher at Rs 843.20 apiece, as of 09:40 a.m. This compares to a 0.38% decline in the NSE Nifty 50 Index.

It has fallen 39.31% in the last 12 months. Total traded volume so far in the day stood at 7.9 times its 30-day average. The relative strength index was at 53.

Out of 45 analysts tracking the company, seven maintain a 'buy' rating, 14 recommend a 'hold', and 24 suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 9.4%.