Who is Rajiv Anand, IndusInd Bank’s new CEO? What are the challenges before him?

Veteran banker Rajiv Anand has been appointed the new chief executive officer of IndusInd Bank for three years from August 25.

“The board looks forward to working closely with Rajiv and the management team to deliver strong and robust growth while prioritising the highest standards of governance. The board would like to express its gratitude to the Reserve Bank of India (RBI) for its invaluable support throughout the process,” stated Sunil Mehta, chairman of the board of directors at IndusInd Bank.

Anand comes with a 35-year track record in the financial services sector and was serving as the deputy managing director of Axis Bank prior to his new appointment. He has worked at major global institutions across asset management, retail banking, and wholesale banking segments.

“The selection of Rajiv Anand by IndusInd Bank's board and RBI approval signal a deep effort in restoring confidence, strengthening governance, and charting a new course of growth for the bank," says Deven Choksey, managing director of DRChoksey FinServ Pvt. Ltd.

IndusInd Bank has been in troubled waters after former CEO Sumant Kathpalia and his deputy Arun Khurana resigned following allegations of an accounting lapse worth around ₹1,960 crore in the lender’s foreign exchange derivatives portfolio, leading to a substantial loss. The bank’s financials took a hit following the controversy. Questions were also raised about the bank’s internal controls and risk management practices.

With Anand’s appointment, the bank has filled the leadership gap caused by the departure of its key leaders.

Challenges for Anand

The new CEO will have to concentrate on three challenges facing the troubled bank: governance failures, finding a path to sustainable financial performance, and dwindling confidence in the brand. The first task will be to tackle the governance failures that caused the accounting controversy. The bank has already started a cleanup, and Anand's leadership is expected to strengthen this effort.

"A thorough review and revamp of internal audit and risk management frameworks will be required to prevent future lapses. Anand will have to work closely with RBI and Sebi to ensure the bank is fully compliant and follows the highest standards of transparency and reporting,” Choksey says.

According to recent reports, the bank has already approved a plan to raise ₹30,000 crore in capital, consisting of ₹10,000 crore from equity and ₹20,000 crore from debt. This will improve the balance sheet and lay a good foundation for the bank’s growth.

Next, Anand will have to drive sustainable financial performance. While the bank recently reported a rebound in profitability with a net profit of ₹604 crore for the June quarter (Q1FY26), a sustainable turnaround is the goal.

Anand's focus will likely be on:

Improving NIM: The bank's NIM was 3.35% in Q1FY26, down from 4.25% a year earlier. Anand will need to explore ways to improve this vital profitability measure through a combination of better loan pricing and a more efficient liability structure.

Balancing growth and asset quality: The bank reported a rise in non-performing loans (NPLs) in Q1FY26. Anand will be responsible for driving growth in the retail and corporate sectors without losing the grip on asset quality to prevent an increase in bad loans.

Cost optimisation: According to analysts, the bank has announced a renewed focus on cost management, aiming to keep operational expense growth within single digits. This step will boost the bank's profitability and will likely be a key part of Anand's financial improvement strategy.

Third, the new CEO will have to focus on reviving the confidence of the brand, investors, and depositors. The recent controversy has affected the bank's image. Anand's leadership will likely play a vital role in restoring trust among investors, customers, and employees.

"Anand will have to involve a clear and consistent communication strategy to rewrite the bank's new direction and commitment to good governance," says Choksey. He must leverage the bank's strengths in areas such as vehicle finance and microfinance while also expanding into new, high-growth segments, adds Choksey.

Additionally, the bank will need to upgrade its technology to improve operational efficiency. Moreover, the bank should focus on providing a superior customer experience compared to its peers, which can be a key differentiator in a competitive banking sector.