IndusInd Bank’s newly appointed CEO, Rajiv Anand, has outlined an ambitious restructuring plan aimed at repairing the lender’s performance and restoring investor confidence after a major governance scandal that forced out the previous leadership. In his first detailed interview since taking charge, Anand said the bank has accumulated “organisational cholesterol”—a buildup of inefficiencies and outdated processes—that must be eliminated immediately.
Speaking to Bloomberg, Anand said the bank will undertake a sweeping internal overhaul within days, focusing on strengthening core controls, improving profitability, and removing chronic underperformance. However, he clarified there will be no large-scale layoffs, stressing that routine exits of consistently low-performing staff will continue as in any organisation. The bank will simultaneously invest heavily in artificial intelligence and expand its retail lending portfolio to stabilise long-term earnings.
The overhaul comes after a turbulent period for the Hinduja-backed lender, which was hit by a probe into a massive ₹19,600 crore accounting discrepancy. The fallout triggered the exit of its former CEO and several senior executives. IndusInd Bank has since replaced key positions including its chief financial officer, internal auditor, and assurance leaders, with a new chief risk officer scheduled to join in January. The bank reported losses in the second quarter and increased its bad-loan write-offs amid the cleanup effort.
Anand has set a return-on-assets (ROA) target of 1% within 18 months, a critical milestone for the bank’s turnaround. Currently, IndusInd’s ROA stands at -0.33%, far below larger peers such as Kotak Mahindra Bank. Despite the challenges, Anand maintains the bank is “very well capitalised” and will not require fresh fundraising for at least two years. As part of its new growth strategy, IndusInd will expand into home loans, MSME financing, and wealth management, tapping into rising affluence in smaller cities. Analysts say the bank appears to be “on the road to recovery” as it tightens systems and governance under its new leadership.
