IndusInd Bank, reeling from one of the largest accounting scandals in India’s banking sector, has zeroed in on three seasoned executives to fill its top leadership positions. The shortlist includes Rajiv Anand of Axis Bank, Anup Saha of Bajaj Finance, and Rahul Shukla of HDFC Bank.
The bank has been without a permanent CEO since late April, when Sumant Kathpalia and deputy Arun Khurana resigned, citing moral responsibility for massive undisclosed losses in its forex derivatives trading book. Both former executives have also been barred by SEBI for insider trading, after allegedly profiting over ₹157 crore from selling the bank’s shares before the crisis came to light.
The Candidates
- Rajiv Anand, currently deputy managing director at Axis Bank, has over 35 years of experience across retail and wholesale banking. He is due to retire in August.
- Anup Saha, recently appointed MD of Bajaj Finance, brings more than three decades of experience and played a major role in scaling Bajaj Finance’s retail business.
- Rahul Shukla, on sabbatical from HDFC Bank, has headed corporate and business banking and previously held senior positions at Citibank across South Asia.
According to people familiar with the process, IndusInd’s board is expected to finalize and submit the list of candidates to the Reserve Bank of India (RBI) any day now, ahead of the regulatory deadline of June 30. The RBI has directed that candidates must be external to the bank to ensure fresh oversight.
What Triggered the Crisis
IndusInd’s troubles began in early March, when it disclosed that years of accounting errors in its forex derivatives book had been discovered. Initially estimating the impact at ₹1,600 crore, the bank later revealed total losses of ₹2,329 crore—erasing nearly all profits for the March quarter. Net interest income also slumped 43% year-on-year to ₹3,048 crore.
The crisis didn’t stop there. An internal audit subsequently found:
- ₹674 crore wrongly booked as interest income from the microfinance business
- ₹595 crore of unsubstantiated balances under “other assets” on the balance sheet
These revelations raised serious concerns about corporate governance and internal controls. The bank’s shares have been under pressure ever since, trading about 42% below their 52-week high as of June.
Interim Management
Since the resignations of Kathpalia and Khurana in late April, IndusInd Bank has been managed by an RBI-approved executive committee led by Soumitra Sen (head of consumer banking) and Anil Rao (chief administrative officer).
Looking Ahead
The leadership overhaul is seen as critical for restoring confidence among investors, regulators, and customers. IndusInd’s chairman Sunil Mehta has assured stakeholders that the new leadership team will be announced in time to stabilize operations and rebuild trust.
As the bank prepares to turn the page, the shortlisted candidates—each with decades of experience—will face the task of tightening controls, repairing credibility, and steering the lender back to growth.
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