IndusInd’s new CEO Rajiv Anand moves swiftly to cut risks

IndusInd Bank’s recently appointed chief executive, Rajiv Anand, has wasted no time in addressing governance and credit risks as part of an ambitious three-year turnaround strategy aimed at restoring investor confidence following a period of financial turbulence and internal control failures.

According to Reuters, Anand has begun one-on-one meetings with division heads, directing them to identify operational lapses and submit targeted improvement plans. These steps are part of a broader push to diversify the bank’s loan book and lessen dependence on large deposits. The sources spoke on condition of anonymity due to the confidential nature of the meetings.

Anand steps into the role at a fraught moment. IndusInd endured a sharp loss in March after disclosing a ₹2,000-crore derivatives accounting lapse, which triggered the resignations of its CEO, Sumant Kathpalia, and his deputy, Arun Khurana—along with a bruised reputation that wiped out over a quarter of its market value in a single day. 

Anand’s appointment – effective 25 August 2025 and spanning three years – has the full backing of the promoter group. Ashok Hinduja, representing the Hinduja family’s approximately 16 per cent stake, pledged unwavering support and commended the RBI for approving the move swiftly. 

The appointment follows the bank’s formal submission of three candidates to the Reserve Bank of India (RBI), with Anand’s name at the forefront. 

Eyeing risk reduction and loan structure overhaul

Anand is prioritising risk management at the highest levels. In addition to operational reviews, he is targeting a reconfigured lending approach—one that emphasises secured retail and MSME loans while curbing corporate exposure, according to analysts reviewing the bank’s annual guidance, reported Economic Times. 

He also reassured staff that recruitment will continue amid restructuring, with plans to ramp up digital capabilities and simplify processes throughout the bank. 

At the end of June, IndusInd’s loan book had contracted 4 per cent to ₹3.3 trillion, and deposits dipped slightly to ₹3.97 trillion. Its gross non-performing assets stood at 3.64 per cent, notably higher than the estimated 3.03 per cent, indicating ongoing asset quality pressures. 

The stock has underperformed, falling approximately 20 per cent year-to-date compared to a 6 per cent rise in the Nifty Bank Index, reflecting worries over credit and governance risks among investors.

In July, the bank also approved plans to raise up to ₹30,000 crore, a clear sign of the urgency to shore up liquidity amid uncertain investor sentiment.

Anand inherits a bank bruised by leadership turnover, accounting irregularities, and flagging investor faith. He has signalled his intent to confront these challenges head-on. A governance reset, reinforced controls, loan diversification, digital upgrades—and systematic restructuring—form the crux of his turnaround plan.