RajivAnand to start with fresh and clean slate at IndusInd Bank: Chairman

Rajiv Anand, who has been appointed managing director (MD) and chief executive officer (CEO), IndusInd Bank, has the opportunity to begin with a fresh and clean slate, said Sunil Mehta, chairman, in a message to shareholders of the bank.

 

Anand will be expected to scale the differentiated franchise of the bank, with a strong ethical foundation, Mehta added.

 

“I believe the bank has immense potential to deliver sustainable and profitable growth for years to come,” Mehta said. 

 

He added that the Board and the management are fully committed to ensuring a smooth leadership transition.

 

Last week, IndusInd Bank appointed Anand as MD and CEO for a period of three years, with effect from August 25, 2025.

 

Anand’s appointment has received Reserve Bank of India (RBI) nod, but is subject to shareholder approval.

 

Mehta highlighted that in FY26, the bank is focused on ramping up retail liabilities, scaling secured retail and micro, small and medium enterprise (MSME) assets but will be selective in the corporate space.

 

It will continue to pivot its rural distribution towards Bharat banking, while remaining watchful on the microfinance segment, Mehta said.

 

He further said that the bank is investing in scaling up existing and new initiatives such as home loans, affluent banking, digital 2.0, merchant acquiring, and micro-market driven distribution.

 

Additionally, Mehta acknowledged that the lapses — which occurred at the bank — are not what one expects from a bank of IndusInd’s stature.

 

He assured shareholders that the bank’s management has undertaken a comprehensive deep dive into all issues brought to its attention. Also, the issues have been appropriately accounted for in the financial statements for FY25.

 

In Q4FY25, the bank had reported a loss of ~2,329 crore as it substantially ramped up provisions and reversed incorrectly booked revenue and income entries linked to accounting discrepancies in the derivatives and microfinance segments. These were discovered during the quarter.

 

Sumant Kathpalia, former MD & CEO, had quit in April taking moral responsibility for the accounting lapses. Additionally, former deputy CEO Arun Khuran had also resigned citing the same reason.

 

“We were confronted with certain material developments necessitating a fresh look at governance and accounting rigor. These developments, while deeply unfortunate, have catalysed a transformation rooted in ethics, compliance and long-term sustainability of your bank,” Mehta said.

 

“We have acted decisively to pursue higher standards of governance, transparency, and accountability. This governance culture will continue to be reinforced as we move forward,” he further said.

 

He added that the bank is reinforcing the ethos of governance while executing its growth strategy.

 

“The Board is working closely with the management to instil a cultural shift — one that prioritises ethics, transparency, and long-term sustainability in all the actions we undertake,” Mehta said.