With the Reserve Bank of India (RBI) setting a June 30, 2025, deadline for IndusInd Bank to name its new Managing Director and Chief Executive Officer (MD & CEO), the bank’s board has shortlisted three seasoned candidates: Rajiv Anand from Axis Bank, Rahul Shukla from HDFC Bank, and Anup Saha from Bajaj Finance. This follows the resignation of former CEO Sumant Kathpalia in April 2025, prompted by accounting discrepancies in the bank’s derivatives portfolio. Rajiv Anand, a veteran with over 35 years of banking experience, is considered the frontrunner. This article delves into the selection process, candidate profiles, industry implications, and expert perspectives on this critical leadership transition.
Background and Context
IndusInd Bank, one of India’s leading private sector banks, has been navigating a turbulent period since Kathpalia’s exit, which was linked to a derivatives accounting controversy that impacted the bank’s net worth by approximately ₹1,979 crore, or 2.27%, as of December 2024. A forensic review by Grant Thornton identified “incorrect accounting of internal derivative trades, especially in early termination,” as the primary issue, leading to notional profits being recorded. The RBI, while granting Kathpalia a one-year extension instead of the requested three years, approved a Committee of Executives—comprising Soumitra Sen (Head of Consumer Banking) and Anil Rao (Chief Administrative Officer)—to manage operations during the transition.
The RBI’s directive to submit a final list of CEO candidates by June 30 underscores its emphasis on robust governance in private banks. IndusInd Bank’s Chairman, Sunil Mehta, assured analysts that the board would submit recommendations “well ahead of the deadline,” signaling a proactive approach to stabilizing leadership.
Candidate Profiles
Rajiv Anand
Rajiv Anand, 59, emerges as the leading contender, bringing a wealth of experience from Axis Bank, where he serves as Deputy Managing Director until his retirement in August 2025. A chartered accountant, Anand has over 35 years of expertise in asset management, retail banking, wholesale banking, and treasury operations. He joined the Axis Group in 2009 as the founding MD of Axis Asset Management Co., later leading retail banking in 2013 and wholesale banking in 2018. Post-retirement, Anand will serve as Non-Executive Chairperson of Axis Max Life Insurance, indicating his continued influence in the financial sector. Industry sources highlight his retail banking acumen and treasury expertise as ideal for IndusInd Bank, given its significant exposure to vehicle finance (28% of its loan book) and microfinance (12%).
Rahul Shukla
Rahul Shukla, 55, is currently on sabbatical from HDFC Bank, where he heads the Commercial and Rural Banking division. With a focus on corporate lending, Shukla’s experience aligns with IndusInd Bank’s commercial banking portfolio, which constitutes 30% of its advances. His leadership in rural banking could bolster IndusInd’s outreach in underserved markets, a priority for the bank’s growth strategy. However, his sabbatical status raises questions about his immediate availability.
Anup Saha
Anup Saha, recently appointed Managing Director of Bajaj Finance in March 2025, brings over 25 years of experience in mortgages, credit cards, auto loans, and structured finance. His tenure at Bajaj Finance, a leading NBFC, showcases his ability to manage diverse financial products, which could complement IndusInd’s retail and consumer finance focus. However, his recent appointment at Bajaj Finance may complicate his candidacy, as transitioning to a bank CEO role so soon could pose continuity challenges.
Industry and Market Implications
The CEO selection comes at a critical juncture for IndusInd Bank, which saw its stock plummet 26% in a single day in March 2025 following the derivatives issue but has since recovered, gaining nearly 7% in the past month. Despite this, the stock remains down 10% year-to-date, reflecting investor caution. The new CEO will need to restore confidence, strengthen governance, and address the bank’s ₹1.17 lakh crore loan book, which includes significant retail and microfinance exposure.
Industry experts emphasize the need for a leader with retail banking expertise. “IndusInd Bank’s portfolio, with high exposure to vehicle finance and microloans, requires a CEO with strong retail experience. Rajiv Anand’s track record makes him a strong fit,” said a senior official at a private bank. The bank’s focus on digital transformation, with 40% of retail loans disbursed digitally in FY24, also demands a leader adept at integrating technology with traditional banking.
Industry Leader Perspectives
Banking leaders have weighed in on the significance of this transition. Anil Gupta, Partner at EY India, commented, “IndusInd Bank needs a leader who can navigate regulatory scrutiny and rebuild trust post the derivatives issue. Anand’s experience in retail and treasury operations positions him well.” Shalini Warrier, former Executive Director at Federal Bank, noted, “The RBI’s emphasis on governance means the new CEO must prioritize compliance and risk management, alongside growth.” Meanwhile, a senior banker anonymously cautioned, “While Anand is a frontrunner, Shukla’s rural banking expertise could align with India’s financial inclusion goals, and Saha’s NBFC background brings a fresh perspective.”
Social Media Reactions from Industry Leaders
The candidate shortlist has sparked discussions on X:
@BankingInsightsIN: “Rajiv Anand leading the race for IndusInd Bank CEO is big news! His Axis Bank experience could stabilize the bank. #IndusIndBank #Banking”
@FinMarketsGuru: “IndusInd’s CEO shortlist—Anand, Shukla, Saha—shows depth in talent. RBI’s deadline adds urgency. Who’s your pick? #Banking #CEO”
@EconObserverIN: “Anand’s retail expertise makes him a strong fit for IndusInd, but Shukla’s rural banking focus is intriguing. #IndusIndBank #RBI”
Challenges and Future Outlook
The new CEO will face multiple challenges: addressing the fallout from the derivatives controversy, strengthening risk management, and sustaining growth in a competitive banking landscape. IndusInd Bank’s net interest margin (NIM) of 4.2% in Q4 FY24 remains strong, but rising compliance costs and potential regulatory fines could pressure profitability. The bank’s digital banking initiatives, including its IndusMobile app with 2.5 million active users, will require further investment to compete with fintechs.
The RBI’s oversight ensures the selection process prioritizes governance. With the board expected to submit its recommendations soon, the chosen candidate will likely assume the role by Q3 FY25, pending RBI approval. The leadership transition will be pivotal in shaping IndusInd Bank’s trajectory, especially as it aims to expand its ₹2.2 lakh crore asset base and deepen financial inclusion.
Conclusion
IndusInd Bank’s shortlisting of Rajiv Anand, Rahul Shukla, and Anup Saha for the CEO role reflects a strategic approach to balancing experience, expertise, and regulatory compliance. As the RBI’s June 30 deadline approaches, the bank’s choice will signal its commitment to restoring stability and driving growth. With Anand as the frontrunner, the industry awaits a leader who can navigate challenges and position IndusInd as a resilient player in India’s banking sector.
