India's IndusInd Bank jumps on naming Rajiv Anand as CEO, raising hopes of a turnaround
The stock was the top gainer on the Nifty Bank (.NSEBANK), opens new tab and Nifty Private Bank (.NIFPVTBNK), opens new tab indexes, which were trading 0.3% and 0.1% lower, respectively.
It was also the biggest gainer on the benchmark Nifty 50 (.NSEI), opens new tab, which was down 0.5%.
The lender named Anand as CEO following approval by the Reserve Bank of India, which has final authority on senior banking appointments.
Anand, a veteran banker, is currently deputy managing director at Axis Bank (AXBK.NS), opens new tab and has held key management positions at leading global financial institutions.
IndusInd Bank took a $230 million hit in the year ended March 31 due to misaccounting in internal derivative trades, prompting the resignations of CEO Sumant Kathpalia and deputy Arun Khurana in April.
In the interim, the bank has been steered by the board and two senior officials.
The stock, which has lost 8.5% of its value since the disclosure of the accounting discrepancies in March, was last trading 2.5% higher at 823.15 rupees.
Citi analysts said Anand's 35-plus years of banking experience and track record in scaling retail and corporate businesses are key positives.
The appointment of a seasoned private banker has raised hopes of an early turnaround, said Emkay Global.
Reorganising the bank's top management may be among Anand's initial top priorities, Jefferies analysts said, reiterating a "buy" rating on the stock.
The stock carries an average "sell" rating, with a median price target of 750 rupees, per data compiled by LSEG.
Despite Tuesday's gains, IndusInd Bank is the worst year-to-date performer on both the Nifty Bank and Private Bank indexes, down 14%.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
11 minutes ago
- Reuters
India's Berger Paints misses quarterly profit view on higher expenses, one-time charge
Aug 5 (Reuters) - Berger Paints India ( opens new tab reported quarterly profit below analyst estimates on Tuesday, as higher expenses and a one-time charge related to a fire incident weighed. Consolidated net profit shrank 11% to 3.15 billion rupees (about $36 million) in the quarter ended June 30. Analysts, on average, had predicted a profit of 3.62 billion rupees, as per data compiled by LSEG. Berger took a one-time charge of 368.1 million rupees during the quarter. For further earnings highlights, (click here). Indian paintmakers have been grappling with soft retail demand. "The early onset of monsoon played spoilsport this quarter," CEO Abhijit Roy said in a statement. However, India's largest paintmaker Asian Paints said last month that it sees some "green shoots" of demand recovery in the sector. It had resorted to discounts in the quarter to buy back customers, while it posted an in-line quarterly profit. Rivals, Akzo Nobel India and Kansai Nerolac posted lower quarterly profit. PEER COMPARISON * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT APRIL-JUNE STOCK PERFORMANCE -- All data from LSEG -- $1 = 87.7910 Indian rupees
Reuters
14 minutes ago
- Reuters
China to waive or reduce tuition fees for pre-school children
BEIJING, Aug 5 (Reuters) - China will waive tuition fees for children in their final year at public kindergartens, and reduce them for eligible private institutions, from the start of the upcoming term, the government said on Tuesday. The measures were announced in guidelines released by the State Council aimed at a phased roll-out of free pre-school education.
Reuters
14 minutes ago
- Reuters
China pledges more financial support for advanced manufacturing
BEIJING, Aug 5 (Reuters) - China issued guidelines on Tuesday to boost financial support for advanced manufacturing, saying it would encourage banks to provide more medium- and long-term financing to industries such as integrated circuits and advanced materials. The guidelines, jointly released by seven state agencies including the central bank and the finance ministry, are aimed at promoting industrial upgrading while curbing excessive competition, which has been a growing concern for Chinese policymakers as overcapacity fuels deflationary pressures. Beijing is also looking to spur domestic demand and technological innovation as U.S. trade threats threaten to stifle growth. The latest financial plan "aims to deepen supply-side structural reform in the financial sector, strengthen the synergy between industrial and financial policies, and provide high-quality financial services for advancing new-type industrialisation and developing new quality productive forces," the agencies said. China will adopt policies that combine support and control, promote industries' move up the value chain, and prevent so-called 'involution-style' cut-throat competition, according to the guidelines. China will use structural monetary policy tools to encourage banks to provide medium- and long-term financing for key sectors including integrated circuits, medical equipment, servers, basic software, industrial software, and advanced materials, the guidelines said. Technology firms achieving breakthroughs in core technologies will benefit from 'green channels' for listings, mergers and acquisitions, and bond issuance, according to the guidelines. By 2027, China aims to establish a financial system that supports high-end, intelligent, and green development of the manufacturing industry, with significantly enhanced service adaptability, the state agencies said. The guidelines also call on financial institutions to provide financial solution plans for companies severely affected by external factors and pledge support for mining companies to stabilise supply and prices of commodities. In recent years, China has been directing more bank credit to the manufacturing sector, shifting resources away from the debt-laden property market.
