IndusInd Bank has announced the appointment of veteran banker Rajiv Anand as its new Managing Director and Chief Executive Officer, effective August 25, 2025. The decision follows a period of leadership instability and financial controversy within the bank, stemming from a major derivatives accounting issue earlier this year.

The bank’s board approved Anand’s three-year term, which will run until August 24, 2028, after receiving formal approval from the Reserve Bank of India (RBI). The appointment marks a significant leadership shift following the resignation of previous CEO Sumant Kathpalia and Deputy CEO Arun Khurana in April 2025. Their exit came in the wake of a ₹1,960 crore ($230 million) loss linked to improper derivatives accounting and concerns over internal governance.

Rajiv Anand, aged 59, brings over 35 years of banking and financial experience, having served in key leadership roles at Axis Bank. He retired from Axis on August 3, 2025, after completing his third term as a board member and Deputy Managing Director. Known for his strategic insights across retail and wholesale banking, Anand was instrumental in expanding Axis Bank’s retail banking footprint in 2013 and leading its wholesale operations from 2018.

Anand steps into his new role at a critical time. IndusInd Bank’s recent quarterly results revealed a 68% year-on-year drop in standalone net profit to ₹684 crore, and a 72% fall in consolidated net profit to ₹604 crore. While net interest income declined to ₹4,640 crore, it still slightly exceeded analyst estimates. The bank’s asset quality metrics also raised concerns, with gross non-performing assets (NPA) rising to 3.6% and net NPAs reaching 1.12%.

Despite these challenges, the market responded positively to Anand’s appointment. IndusInd Bank’s shares rose over 4% on August 5, reaching intraday highs of ₹848.80, making it the top gainer among Nifty Bank and Nifty 50 constituents. The news appears to have reassured investors of a potential turnaround in leadership and governance.

Brokerage firms offered mixed reactions. Jefferies maintained a Buy rating with a target price of ₹920, citing Anand’s experience and the potential for improved governance and operational efficiency. Emkay Global, while acknowledging the positive sentiment, retained a Reduce rating and a target of ₹700, citing lingering concerns over earnings growth and near-term performance. Citi Research upheld a Sell rating with a target of ₹765 but noted the leadership change as a constructive move.

Anand is expected to focus on rebuilding trust, tightening internal controls, and setting a clear strategic direction. His mandate includes reviving fee-based income, streamlining risk management, and enhancing operational efficiency in a market that remains cautious but hopeful.

The official handover is scheduled for August 25, 2025. The banking industry and investors alike will closely monitor how effectively the new CEO can restore IndusInd Bank’s reputation and navigate it through this challenging period.