IndusInd Bank on Monday announced the appointment of Rajiv Anand, former deputy managing director of Axis Bank, as its new MD and CEO.

The board, based on approval of the Reserve Bank of India (RBI), have at its meeting held on August 4 approved the appointment of Rajiv Anand as ‘additional director’ in the category of managing director and CEO and key managerial personnel of the bank for three years.

The appointment is effective from August 25, 2025, up to August 24, 2028, subject to the approval of the shareholders of the bank, it said.

He would assume charge at a time the bank is reeling under a slew of issues stemming from alleged irregularities of the top management in recognising bad loans and trading reverses.

IndusInd Bank promoter Ashok Hinduja on Tuesday said the lender’s newly appointed chief executive and managing director, Rajiv Anand, will help realise the full potential of the bank.

The promoter grouping will offer “full support” to Anand, Hinduja said.

“As the promoter of IndusInd Bank, we offer full support and wish him all success,” he said in a statement.

The stock was the top gainer on the Nifty Bank and Nifty Private Bank indexes.

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.

Despite Tuesday’s gains, IndusInd Bank is the worst year-to-date performer on both the Nifty Bank and Private Bank indexes, down 14 per cent.

Anand retired as deputy managing director of Axis Bank on August 3 upon completion of his third term as a director on the bank’s board.

Last month, the RBI extended the tenure of the committee of executives of the bank for one month as IndusInd Bank expected the regulator’s clearance for its new MD and CEO by that time.

The situation arose following the resignation of MD and CEO Sumant Kathpalia in the wake of accounting lapses costing ₹1,960 crore to the lender in the 2024-25 fiscal year.