Can IndusInd’s new chief, Rajiv Anand, lead a turnaround after a 42% stock decline? Experts weigh in

One of the most significant recent developments at IndusInd Bank is the appointment of Rajiv Anand as the new Managing Director and CEO, marking a critical turning point for the bank. According to Deven Choksey research, “This marks a pivotal moment for IndusInd Bank, coming at a time of significant transition and scrutiny. His selection by the board and approval by the RBI signal a concerted effort to restore confidence.”

Choksey added that Anand's experience in navigating complex environments, especially during crises, is “precisely what IndusInd Bank needs right now.”

Investor sentiment has taken a hit over the past year. On August 5, 2025, IndusInd Bank's share price closed at Rs 803.90 — down sharply from Rs 1,389.45 a year ago. This represents a one-year decline of 42.1%, highlighting deep concerns around the bank’s performance. Its latest market cap stood at Rs 63,300 crore.

According to a recent report by Elara Capital, IndusInd Bank’s Q1 FY26 results show early signs of recovery after a difficult Q4 FY25. For the first time in several quarters, earnings were free from one-offs or irregularities. However, operational performance remained weak.

Loans and deposits both declined by 3% quarter-on-quarter, and Net Interest Margin (NIM) softened, though supported by a one-time income tax refund and a large recovery. Elara Capital noted, “Q1 marked the first signs of some stabilization with no irregularities, but core profitability was still soft.”

On the cost side, the bank managed to keep operating expenses under control, which helped cushion the impact on earnings. IndusInd aims to further limit cost growth over the next two years. Despite this, Elara cautioned that “FY26 may see further pressure, and earnings downgrades cannot be ruled out.”

According to Elara, Asset quality continues to be a concern. Slippages were elevated at Rs 2,570 crore, or 2.9% of loans, with the microfinance and vehicle finance segments contributing over 65% of the stress. Gross Non-Performing Loans (GNPLs) rose across most retail categories.

Deven Choksey noted, Rajiv Anand brings over 35 years of experience in financial services, having worked across asset management, retail banking, and wholesale banking. Most recently, he served as Deputy MD at Axis Bank, where he led the wholesale banking division and played a key role in the bank’s digital transformation.

“His strategic and operational capabilities, particularly in wholesale banking and digital initiatives, are highly relevant for IndusInd Bank,” said Choksey.

Vinit Bolinjkar, Head of Research at Ventura, says “Q1 FY26 reflects a challenging quarter, with declines in Net Interest Income and NIM, along with degrowth in deposits and advances,” he said. However, he acknowledged that the quarter marks some recovery from earlier disruptions.

“The market will now focus on Rajiv Anand’s leadership, which will be critical in shaping the bank’s direction.”

Looking ahead, while domestic factors remain largely positive, the broader markets are expected to stay range bound. “This cautious outlook will likely persist until we get more clarity on the global trade deal landscape and see a stabilization of FII selling”, Bolinjkar added.