IndusInd Bank shares rally nearly 6% after Rajiv Anand named MD & CEO for 3-year term
In an exchange filing, the bank stated that its board has approved Anand's designation as 'Additional Director' in the MD & CEO category, for a period of three years with his tenure set to begin on August 25, 2025.The three-year appointment will run until August 24, 2028, pending shareholder approval at the bank's upcoming general meeting.
In the filing, the bank said that Anand brings extensive experience from his previous role as Deputy Managing Director at Axis Bank, where he spearheaded the bank's Wholesale Banking Business.
The Mumbai-based private lender made the announcement late Monday night, and the appointment has now received the Reserve Bank of India's approval, a requirement for top-level banking appointments.
Anand's appointment comes at a crucial juncture for IndusInd Bank, which has been without a full-time CEO since the resignation of Sumant Kathpalia at the end of April. Kathpalia stepped down, taking moral responsibility for the bank's derivatives accounting controversy that surfaced earlier this year.
In the interim, the bank had been steered by a committee of senior executives, including Soumitra Sen, Head of Consumer Banking, and Anil Rao, Chief Administrative Officer. The appointment of a permanent CEO is expected to bring much-needed stability to the lender's leadership team.
Rajiv Anand, aged 59, is a chartered accountant with more than 35 years of experience across retail banking, wholesale banking, and asset management. He joined the Axis Group in 2009 as the founding Managing Director of Axis Asset Management Co. In 2013, he moved to Axis Bank as President of Retail Banking, and later took over the wholesale banking division in 2018. Most recently, he served as Deputy Managing Director at Axis Bank, where he played a key role in driving the bank's digital and wholesale strategies.
IndusInd Bank's financial performance has seen turbulence in recent quarters. The bank posted a net loss in the March 2025 quarter, its first in 20 years, owing to the accounting issues. However, it returned to profitability in the June 2025 quarter, albeit at much lower levels than the previous year.
For the June quarter, the bank reported a 72% YoY drop in net profit to ₹ 604 crore, compared with ₹ 2,171 crore in Q1FY25. However, Net Interest Income (NII) exceeded street expectations, coming in at ₹ 4,640 crore, beating the estimate of ₹ 4,207 crore. On a year-on-year basis, though, NII declined 14.2% from ₹ 5,408 crore.
Net Interest Margin (NIM) rose sequentially to 3.46% from 2.25% in Q4, but was still lower than 4.25% in the same period last year. Despite sequential improvement in slippages, asset quality remained a concern. Gross NPAs rose to 3.64% from 3.1%, while Net NPAs increased to 1.12% from 0.95%. The Provision Coverage Ratio (PCR) stood at 70%.
Brokerage house Jefferies described Anand's appointment as a key positive development for IndusInd Bank, given his longstanding tenure and experience at Axis Bank.
'Reorganisation of IndusInd Bank's top management may be the key initial steps and we will watch out for joiners from other banks,' Jefferies noted in its report. The brokerage expects improvement in fee income, asset quality, and operating efficiency under Anand's leadership. It has maintained a 'Buy' rating on IndusInd Bank with a price target of ₹ 920, implying a 17 percent upside from current levels.
Following the announcement, IndusInd Bank's stock jumped 5.6 percent intraday to hit a high of ₹ 848.80 on the BSE. However, the stock is still down 43 percent over the past one year and has declined 11.6 percent in 2025 year-to-date.
The stock remains significantly below its 52-week high of ₹ 1,498.70, touched in September 2024, and only recently recovered from its 52-week low of ₹ 605.40, hit in March 2025.
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
7 minutes ago
- Business Standard
Eris Lifesciences to tap Rs 5,000-cr insulin and semaglutide market in FY26
Ahmedabad-based Eris Lifesciences is looking to tap opportunities in the nearly Rs 5,000-crore Indian insulin market after Danish drugmaker Novo Nordisk announced the withdrawal of its insulin products from the market in April this year. 'We expect that Novo's cartridge inventory in the market will run out by October 2025. So this market opportunity is something that one can start monetising from the November–December time frame,' the company's executive director and chief executive officer (CEO), Krishnakumar Vaidyanathan, told Business Standard. He added that the timing fits Eris' plans, as the cartridge filling capability of its Bhopal unit will start becoming operational from January. Vial manufacturing has already been commissioned at the unit, with the company creating a strategic stock of insulins. This comes at a time when Eris is already the largest domestic player in insulins. The company had acquired the India formulations business of Biocon Biologics last year — including established insulin brands Basalog and Insugen. 'Before the Biocon deal, we had a couple of homegrown insulin brands in the market, which did a combined Rs 60 crore in revenue last year. Basalog and Insugen had combined revenues of Rs 200 crore at the time of acquisition,' he said. He added that, with this, the company's insulin franchise has become significantly larger, with a 10 per cent market share. Eris is also among the prominent drugmakers looking to roll out generic versions of the blockbuster molecule semaglutide once its patent expires around March next year. Semaglutide is a GLP-1 (glucagon-like peptide-1) receptor agonist used as an active pharmaceutical ingredient in medications for obesity management and Type-II diabetes. According to Eris' investor presentation for the June quarter of 2025–26 (Q1FY26), the company is on track to be among the first launches in India in March 2026. The company has initiated validation of synthetic semaglutide cartridges at its European Union (EU)-approved AMD injectables site. 'We are also planning the validation of the recombinant semaglutide in our Bhopal plant later this year,' he added. As far as the go-to-market strategy is concerned, the company said it is already in a strong position because of its dominant presence in insulins and prior presence in the GLP market with the launch of liraglutide in September last year. For Q1FY26, Eris Lifesciences recorded a 40 per cent year-on-year (Y-o-Y) rise in consolidated profit after tax (PAT) to Rs 125 crore. Revenue rose to Rs 773 crore during the June quarter against Rs 720 crore in the year-ago period.
&w=3840&q=100)
Business Standard
7 minutes ago
- Business Standard
Assetz acquires 11.5 acres in Bengaluru for ₹1,400 crore housing project
Bengaluru-based real estate developer Assetz has acquired an 11.5-acre land parcel on Old Madras Road (OMR)–Hoskote Highway in East Bengaluru to develop a luxury residential community with an estimated gross development value (GDV) exceeding ₹1,400 crore. The strategic move is backed by Motilal Oswal Alternates (MOA). The company stated that the acquisition includes a joint development component with Vanshee Builders & Developers Pvt Ltd. The upscale residential project, featuring highway-facing support amenities, will span 1.4 million square feet of saleable built-up area (SBA) and comprise approximately 800 units. This move further strengthens Assetz's position in East Bengaluru — a market where it has already made a mark with projects such as Marq, Bloom & Dell, Sun & Sanctum, 66, and Shibui. 'Strategic land acquisition has always been fundamental to our development approach, laying the groundwork well before execution begins. In the past two years alone, we have secured a pipeline of 17 million square feet across 19 projects with the potential to deliver 9,000 homes. With 10 launches this year, we are committed to delivering homes that offer long-term value to our buyers and communities alike,' said Sunil Pareek, executive director, Assetz. In July, Motilal Oswal Alternates closed its sixth real estate fund with a corpus of ₹2,000 crore. Anand Lakhotia, managing director and co-head (real estate) at Motilal Oswal Alternates, commented, 'We are well-positioned to support quality land acquisitions. This association reflects our belief in Assetz's vision of a professional residential platform with established execution capabilities. Their emphasis on good governance, supported by a steady track record, is in line with our strategy of investing in top-performing developers.' Since 2006, Assetz has delivered 20 residential and commercial projects totalling approximately 15 million square feet. In the residential segment, the company has continued to scale, building a portfolio of 46 projects — delivered, launched, and under approval — with a cumulative development potential of 45 million square feet.
Mint
7 minutes ago
- Mint
India-UK trade deal: India's seafood exports to rise threefold; fisherfolk to get better price as export duty scrapped
Seafood exports from India to the United Kingdom (UK) are poised for a significant boost, with industry leaders predicting a threefold jump in the coming years. This surge is expected to be a direct result of a new trade agreement between the two nations, which will eliminate the current 8.9 per cent export duty on fisheries products, PTI reported. The UK is a major importer of seafood from across the world, with a market valued at $5.4 billion annually. Gujarat-based exporter Jagdish Fofandi, the former vice president of Marine Products Export Development Authority (MPEDA), said the relief in export duty would take India's seafood export to the UK from current levels of ₹ 1,000 crore to nearly ₹ 3,000 crore in three years. India's current share in this basket is just 2.2 per cent, which comes to around ₹ 1,000 crore at present. 'With the removal of the export duty, Indian seafood items will become cheaper by nearly 8 to 9 per cent for the buyers in the UK, making Indian products more competitive in comparison to other countries," Fofandi told PTI. "We are assuming that in the next three years, there is a potential growth of 300 per cent. Thus, I am seeing that our export will go up from the current level of ₹ 1,000 crore to ₹ 3,000 crore,' he said. Gujarat, with its extensive coastline of nearly 2,300 kilometres, is considered one of the key states contributing to India's seafood exports. Industry leaders believe that the increase in India's exports will also help Gujarat-based fishermen, exporters and the entire ecosystem attached with this industry: Shrimp makes up 70 per cent of India's total seafood export basket. However, it is facing challenges from US and other markets at present, said Fofandi. He further added that the new UK market will absorb some of the shock, particularly helping the shrimp farming industry of South Gujarat. While South Gujarat is more into shrimp farming, the coastline of Saurashtra region is known for its sea fish exports. Certain varieties of fish exported from that region have already become popular among Indians and Chinese settled in the UK. 'This trade agreement will eventually help fishermen in getting better prices for the catch,' said Ketan Suyani, Gujarat-based regional president of SEAI. At present, Gujarat's fisheries export is roughly around ₹ 5,000 crore. Of these, entire Europe accounts for nearly 40 per cent while the remaining 60 per cent goes to the Gulf, China and other Far-east countries, said Suyani. "This trade agreement will eventually benefit Gujarat fishermen because the demand for Indian seafood products will increase after the duty reduction. Fishermen will get better prices with the increase in export quantity," he said. In July 2025, India and the United Kingdom signed the Comprehensive Economic and Trade Agreement (CETA), a bilateral free trade agreement, said a news report. CETA provides duty-free access to 99 per cent of India's exports to the UK, which covers nearly 100 per cent of the trade value. This includes labour-intensive sectors such as textiles, leather, marine products, gems and jewellery, and toys as well as high-growth sectors like engineering goods, chemicals, and auto components.
