With the Reserve Bank of India (RBI) mandating a June 30, 2025 deadline for IndusInd Bank to appoint its new Managing Director and Chief Executive Officer (MD & CEO), the bank’s board has shortlisted three seasoned leaders: Rajiv Anand from Axis Bank, Rahul Shukla from HDFC Bank, and Anup Saha from Bajaj Finance. This development follows the resignation of former CEO Sumant Kathpalia in April 2025, triggered by a derivatives portfolio accounting controversy that shook the bank’s financial standing. Rajiv Anand, with over 35 years of banking experience, is widely regarded as the frontrunner. This article explores the candidate profiles, the selection process, the broader industry impact, and expert opinions on this crucial leadership change.
Background and Context
IndusInd Bank, one of India’s leading private sector banks, has been navigating a challenging phase since the departure of Sumant Kathpalia. The resignation was precipitated by the discovery of accounting irregularities in the derivatives portfolio, which affected the bank’s net worth by approximately ₹1,979 crore (2.27%) as of December 2024. A forensic audit conducted by Grant Thornton revealed “incorrect accounting of internal derivative trades, especially related to early termination,” which led to the recognition of notional profits that were not backed by real cash flows.
The RBI, while granting Kathpalia only a one-year extension instead of the requested three years, appointed a Committee of Executives led by Soumitra Sen (Head of Consumer Banking) and Anil Rao (Chief Administrative Officer) to manage the bank’s day-to-day operations during the transition. The RBI’s firm directive to finalize CEO candidates by June 30 underscores its focus on strengthening governance and oversight in private banks.
IndusInd Bank Chairman Sunil Mehta assured stakeholders that the board would act proactively, submitting recommendations well ahead of the deadline to restore confidence and operational stability.
Candidate Profiles
Rajiv Anand
Rajiv Anand, aged 59, is seen as the leading contender. He is Deputy Managing Director at Axis Bank and is set to retire in August 2025. A qualified chartered accountant, Anand brings more than 35 years of experience across asset management, retail banking, wholesale banking, and treasury functions. Since joining the Axis Group in 2009 as founding MD of Axis Asset Management, Anand has helmed retail banking since 2013 and wholesale banking since 2018. Post-retirement, he will take on the role of Non-Executive Chairperson at Axis Max Life Insurance. His expertise in retail banking and treasury operations aligns well with IndusInd Bank’s significant exposure to vehicle finance (28% of its loan book) and microfinance (12%).
Rahul Shukla
Rahul Shukla, 55, currently on sabbatical from HDFC Bank, heads the Commercial and Rural Banking division. His experience in corporate lending dovetails with IndusInd Bank’s commercial banking segment, which constitutes about 30% of its advances. His rural banking expertise could help IndusInd deepen its penetration in underserved markets, a key growth area for the bank. However, his sabbatical status may affect his immediate availability.
Anup Saha
Anup Saha was appointed Managing Director of Bajaj Finance in March 2025. With over 25 years of experience in mortgages, credit cards, auto loans, and structured finance, he has strong credentials managing diverse financial products. His tenure at Bajaj Finance, a leading non-banking financial company (NBFC), could bring a fresh perspective to IndusInd’s retail and consumer finance verticals. However, his recent appointment may pose continuity challenges if he transitions quickly to a banking role.
Industry and Market Implications
The CEO selection is critical for IndusInd Bank, which witnessed a dramatic 26% stock price decline in March 2025 following the derivatives scandal. Though the stock has rebounded nearly 7% in the last month, it remains down 10% year-to-date, reflecting lingering investor caution.
The incoming CEO faces the daunting task of restoring trust, strengthening governance frameworks, and managing a ₹1.17 lakh crore loan book heavily weighted towards retail and microfinance portfolios. The bank’s focus on digital transformation—where 40% of retail loans were digitally disbursed in FY24—also demands a leader adept in technology integration and customer-centric innovation.
Industry observers highlight the necessity of retail banking expertise to navigate IndusInd’s portfolio risks and growth opportunities. A senior private banking official commented, “Given IndusInd’s sizable exposure to vehicle finance and microloans, Rajiv Anand’s retail and treasury experience makes him an ideal choice.”
Expert Views
CA Manish Kumar Mishra, notes:
“IndusInd Bank is at a crossroads. The derivatives accounting issue has dented investor confidence and regulatory trust. The new CEO must prioritize robust risk management practices while maintaining aggressive growth in retail and microfinance sectors. Rajiv Anand’s deep treasury and asset management background could help stabilize the bank’s core financial health.”
CA Manoj Singh, adds:
“The RBI’s stringent timeline reflects its zero tolerance for governance lapses. The new leadership will need to align risk and compliance frameworks with growth ambitions. A CEO with a strong governance mindset and retail banking acumen is essential. Rahul Shukla’s rural banking experience is valuable but his sabbatical status might delay immediate impact.”
Social Media Reactions from Industry Influencers
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@BankingInsightsIN: “Rajiv Anand leading the race for IndusInd Bank CEO is big news! His Axis Bank experience could stabilize the bank. #IndusIndBank #Banking”
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@FinMarketsGuru: “IndusInd’s CEO shortlist—Anand, Shukla, Saha—shows depth in talent. RBI’s deadline adds urgency. Who’s your pick? #Banking #CEO”
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@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 next CEO will need to handle multiple complex challenges:
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Resolving legacy accounting issues and rebuilding credibility.
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Strengthening risk management and regulatory compliance.
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Driving growth in a competitive environment, particularly in vehicle finance, microfinance, and retail lending.
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Scaling digital initiatives like the IndusMobile app, currently used by 2.5 million active customers.
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Managing rising compliance costs and potential regulatory penalties.
The RBI’s vigilant oversight ensures the final appointment will focus on governance, stability, and sustainable growth. The board is expected to submit recommendations soon, with the CEO likely to assume office by Q3 FY25, post RBI approval. This leadership transition will be pivotal in defining IndusInd Bank’s future trajectory, especially as it targets expanding its ₹2.2 lakh crore asset base and deepening financial inclusion efforts.
Conclusion
IndusInd Bank’s CEO shortlist of Rajiv Anand, Rahul Shukla, and Anup Saha reflects a careful balance of experience, sectoral expertise, and governance priorities. With the RBI’s June 30 deadline approaching, the bank’s leadership choice will send a strong signal about its commitment to stability and growth. Rajiv Anand appears well-positioned to lead IndusInd through this challenging phase, but all three candidates bring unique strengths that could shape the bank’s evolution in different ways.
