The Board of Directors of IndusInd Bank Limited on Monday approved the appointment of Rajiv Anand as the Managing Director and Chief Executive Officer of the bank, effective August 25, 2025, for a tenure of three years.
The position had been lying vacant since 1 May, when then MD & CEO Sumant Kathpalia resigned following the detection of unaccounted derivative losses at the bank.
Rajiv Anand brings with him over 35 years of experience in the banking and financial services industry. In his most recent role, he served as Deputy Managing Director at Axis Bank Limited. He has a proven track record in scaling retail and corporate banking operations, and possesses deep expertise in capital markets, treasury, and asset management.
In a statement issued late Monday night, IndusInd Bank said that Anand’s appointment marks the bank’s fulfillment of its commitment to swiftly identify a leader with the right competencies and strong ethical grounding.
Commenting on the appointment, Sunil Mehta, Chairman of the Board of Directors, said, “On behalf of the Board, I congratulate Rajiv Anand on his appointment as the MD & CEO of the Bank. The Board looks forward to working closely with Rajiv and the management team to deliver strong and sustainable growth, while upholding the highest standards of governance.”
He also thanked the Reserve Bank of India (RBI) for its invaluable support throughout the selection process.
Former MD & CEO Sumant Kathpalia stepped down after the banking regulator flagged irregularities in the bank’s accounting practices, which led to derivative losses amounting to ₹1,960 crore.
IndusInd Bank had reportedly been using accrual accounting for internal derivative transactions between its asset-liability management (ALM) desk and treasury, while marking to market the trades with external counterparties. This mismatch enabled the bank to defer losses internally while prematurely booking gains externally, thereby overstating earnings.
As the discrepancies grew in scale during 2023, the RBI intervened and directed the bank to conduct an internal review. By March 2024, the RBI banned internal derivative trading by banks. Although it had engaged EY and PwC to probe the matter, both firms failed to make significant progress. It was only in February 2025 that an RBI investigation team uncovered the full extent of the losses.