On Monday, the Board of Directors of IndusInd Bank Limited approved Rajiv Anand's appointment as Managing Director and Chief Executive Officer of the bank, effective August 25, 2025, for a three-year term.
The position had been vacant since May 1, when then-MD and CEO Sumant Kathpalia resigned following the discovery of unaccounted derivative losses at the bank.
Key Highlights
- IndusInd Bank appoints Rajiv Anand as MD & CEO for a three‑year term starting 25 August 2025.
- Rajiv Anand, veteran Axis Bank Deputy MD with 35+ years, chosen post $230M accounting lapse.
Rajiv Anand has over 35 years of experience in the banking and financial services industry. He most recently worked as Axis Bank Limited's Deputy Managing Director. He has a track record of successfully scaling retail and corporate banking operations, as well as extensive experience in capital markets, treasury, and asset management.
In a statement issued late Monday night, IndusInd Bank said Rajiv Anand's appointment demonstrates the bank's commitment to quickly identifying a leader with the necessary competencies and strong ethical foundation.
Sunil Mehta, Chairman of the Board of Directors, commented on the appointment, saying, "On behalf of the Board, I congratulate Rajiv Anand on his appointment as the Bank's MD and CEO. The Board is excited to collaborate closely with Rajiv and the management team to deliver strong and sustainable growth while maintaining the highest levels of governance."
He also thanked the Reserve Bank of India (RBI) for its invaluable assistance during the selection process.
Sumant Kathpalia, former MD & CEO, resigned after the banking regulator found irregularities in the bank's accounting practices, resulting in derivative losses of ₹1,960 crore.
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IndusInd Bank reportedly used accrual accounting for internal derivative transactions between its asset-liability management (ALM) desk and treasury, while marking to market trades with external counterparties. This mismatch allowed the bank to defer losses internally while prematurely booking gains externally, resulting in overstated earnings.
As the discrepancies grew in size in 2023, the RBI intervened and ordered the bank to conduct an internal review. By March 2024, the RBI will prohibit banks from engaging in internal derivative trading. Although it had hired EY and PwC to investigate the matter, neither firm made significant progress. It was not until February 2025 that an RBI investigation team discovered the full extent of the losses.
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