IndusInd Bank shares jump 5% on reports of CEO appointment near final stage

Shares of IndusInd Bank rallied over 5 percent in intra-day trading on Friday following reports that the private lender is close to finalising its next Chief Executive Officer (CEO). The sharp move in the stock came amid renewed optimism around leadership stability at the bank.

According to a report by CNBC, the bank's board is actively evaluating three candidates and is expected to forward the shortlisted names to the Reserve Bank of India (RBI) for final approval shortly. People familiar with the matter indicated that the list includes Rajiv Anand, Deputy Managing Director at Axis Bank; Anup Saha, Managing Director at Bajaj Finance; and Rahul Shukla, Group Head of Commercial and Rural Banking at HDFC Bank, who is currently on sabbatical.

IndusInd Bank had earlier informed the exchanges that the RBI had instructed its board to submit a panel of potential candidates for the CEO position by June 30. During a recent analyst call, Chairman Sunil Mehta had assured stakeholders that the names would be submitted well before the deadline.

The upcoming leadership change is seen as a crucial development for the bank, which has been in focus over the past several months as it works to navigate regulatory expectations and position itself for long-term growth.

Who’s in the Running?

Rajiv Anand, the current Deputy Managing Director of Axis Bank, brings with him more than 35 years of experience in the financial services sector. He began his journey at Axis Asset Management Co. Ltd. in 2009 as its founding Managing Director & CEO. In 2013, he moved to Axis Bank as President of Retail Banking, eventually joining the bank’s board the same year. Five years later, in 2018, he was appointed to lead the Wholesale Banking vertical. Since December 2021, Anand has been serving as Deputy MD, where he oversees several critical functions including Wholesale Banking, Digital Banking, Marketing, and Corporate Communications.

Anup Saha, currently Managing Director at Bajaj Finance, is also being considered. With over 30 years of overall work experience—25 of which have been in financial services—Saha spent 14 years at ICICI Bank before moving to Bajaj Finance in 2017. Over the years, he has managed a wide spectrum of businesses such as credit cards, auto loans, mortgages, and structured finance, contributing significantly to Bajaj Finance’s retail growth strategy.

Rahul Shukla, who most recently held the role of Group Head – Commercial and Rural Banking (CRB) at HDFC Bank, rounds out the list. He joined HDFC Bank in 2018 and previously headed Corporate & Business Banking. With over 30 years of industry experience, Shukla’s earlier stint was at Citibank, which he joined in 1991. He has worked across geographies and held several senior roles, including Head of Corporate Banking for South Asia, overseeing operations in India, Bangladesh, and Sri Lanka. He was also part of Citibank’s Global Corporate Banking Operating Committee.

Market Reacts Positively

IndusInd Bank’s shares surged 5.3 percent in intraday trade on Friday, touching a high of ₹880.85 amid optimism around the leadership transition. Despite the jump, the stock remains nearly 42 percent below its 52-week high of ₹1,514.95, which was recorded in June 2024. The scrip had earlier hit its 52-week low of ₹605.40 in March 2025.

In terms of recent performance, the stock has had a volatile ride. It has declined nearly 45 percent over the past year. In June so far, however, it has rebounded with a 6 percent gain after slipping 2.5 percent in May. Prior to that, the stock surged 29 percent in April, plunged 34 percent in March, edged down 0.1 percent in February, and gained 3.2 percent in January.

Crisis

IndusInd Bank has come under intense scrutiny following a series of financial and regulatory setbacks during the March 2025 quarter, which have significantly impacted investor confidence and the bank’s bottom line.

In a major revelation, the bank disclosed an accounting lapse amounting to ₹1,979 crore in its derivatives portfolio. This was followed by findings from an internal audit that uncovered ₹674 crore erroneously recorded as interest income from its microfinance segment. Additionally, the review flagged ₹595 crore under "unsubstantiated balances" classified under "other assets" on the bank’s balance sheet, raising concerns over financial reporting and governance.

These revelations were accompanied by regulatory action from the Securities and Exchange Board of India (SEBI), which barred former CEO Sumant Kathpalia and four other senior executives from accessing the securities market over alleged insider trading involving the bank’s shares.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.