IndusInd Bank CEO Appointment: Here's What Brokerages Have To Say

Most analysts kept their stock rating and target prices for IndusInd Bank Ltd. unchanged after the private lender has appointed Rajiv Anand as managing director and chief executive officer. With Anand's appointment, the troubled private bank has put an end to uncertainty over top management.

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

IndusInd Bank is dealing with regulatory investigations after unauthorised transactions on its derivative portfolio came into limelight early this year. On the management level, the private lender saw exit of many employees as accounting fraud raised question about private lender's governance and financial stability.

Here's what brokerages said following new management appointment

• Maintain Sell with a target price of Rs 765

• Rajiv Anand at the Helm

• Appointment adds credibility at the top

• Seasoned private sector banker with over 35 years banking experience appointed

• Driving Stability, Steering RoA Turnaround Will be Key

• Maintain Reduce with a target price of Rs 700

• Positive leadership transition, though near term hurdles persist

• Appointment of a seasoned private banker raises hopes of an early turnaround

• Near term caution still warranted around margins/asset quality

• New MD & CEO will have a tough task rebuilding the leadership team, reorienting the bank’s asset/liability mix, reinforcing governance standards, and restoring stakeholders’ confidence, before setting off a turnaround for the bank once again

• Believe clarity on the long-term strategic direction may take some more time

• Maintained Buy; target price of Rs 920.

• Rajiv Anand to Take Charge as CEO.

• See this as a key positive for IndusInd.

• Reorganization of top management team may be the key initial steps.

• Will watch out for joiners from Axis/other banks.

• Improved fee/asset and operating efficiency, besides credibility, will be key expectations.