New Delhi— IndusInd Bank is expected to submit its shortlist for a new chief executive officer (CEO) to the Reserve Bank of India (RBI) on Monday, as the private lender moves to stabilize operations following months of turmoil stemming from a derivatives trading scandal and subsequent leadership upheaval.
The RBI had directed the bank to present its CEO recommendations by June 30. As the deadline approaches, three candidates have reportedly emerged as frontrunners: Rajiv Anand, Deputy Managing Director at Axis Bank who is set to retire in August; Anup Saha, Managing Director at Bajaj Finance with a strong background in digital and retail banking; and Rahul Shukla, former Group Head at HDFC Bank, currently on sabbatical and known for his expertise in commercial and rural banking.
The incoming CEO will face the critical task of restoring investor confidence, strengthening internal oversight, and steering the bank through a period of regulatory scrutiny and operational recovery.
The leadership shake-up comes against the backdrop of an ongoing probe by the Securities and Exchange Board of India (SEBI) into accounting irregularities at the bank. Earlier this month, SEBI issued a clarification to its interim order, stating that global consulting firm KPMG was appointed based on an “engagement note,” rather than a formal “board note”—a detail that is part of a broader investigation into the bank’s handling of financial discrepancies.
IndusInd Bank brought in KPMG in February 2024 to assess the financial fallout of the irregularities, which reportedly resulted in losses of ₹2,093 crore. SEBI criticized the bank for failing to promptly disclose this material information to stock exchanges or classify it as price-sensitive data until early March 2025.
As part of its enforcement action, SEBI named four senior IndusInd executives and barred them from dealing in securities until further notice.
The appointment of a new CEO is seen as a crucial step in the bank’s efforts to reset governance standards and rebuild its reputation in the eyes of regulators, investors, and the broader financial community. (Source: IANS)
