CEO Rajiv Anand Sets Turnaround Path for IndusInd Bank

IndusInd Bank plans to grow in line with India’s banking sector next year after cleaning up its books and completing an internal overhaul. The move follows governance and accounting lapses that led to leadership exits and major losses earlier this year.

Backed by the UK-based Hinduja family, the bank took a $230 million hit and posted its biggest-ever quarterly loss in March. Former CEO Sumant Kathpalia and deputy Arun Khurana stepped down soon after. Under new chief executive Rajiv Anand, the bank reported another loss in the September quarter as loans and deposits declined.

Anand, a former Axis Bank executive, said IndusInd Bank aims to return to market-level growth in FY2026–27, especially in deposits, before expanding its market share the following year. He added the bank is targeting a 1% return on assets (RoA) within 12–18 months, after the metric turned negative during the crisis.

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Despite its stock falling 18% in 2025, Anand ruled out raising fresh capital, unlike other lenders turning to foreign investors. “We have enough capital for at least two years,” he said, adding that raising funds now could “backfire.”

The bank will continue to build its commercial vehicle financing business, which has a loan book of ₹358.8 billion, while cutting back its microloan portfolio to a 6–8% market share. It also plans to expand into wealth management, acquisition financing, and loans against shares once regulations allow.

"Some of the newer businesses will certainly be of interest after regulatory easing, such as the loan against shares business, particularly given the investors coming into the market and the strong HNI (high net worth individual) business we have. That is certainly attractive to us," Anand said.