Rajiv Anand to Lead IndusInd Bank: Hinduja Support

Mumbai, Aug 5 (PTI) 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 that comes after the announcement of Anand as the candidate to lead the troubled lender.

Several senior executives in IndusInd Bank, including the CEO Sumant Kathpalia, resigned over the last few months, necessitating the new appointment. The bank, which is under an interim management, has owned up to fraud, under-reporting of non-performing assets and other drawbacks, which led it to post a Rs 2,329 crore loss for the March quarter.

After it swung back to black in the June quarter, the interim management has assured that there are no problems from the past which are yet to be recognized, and added that the new CEO will come out with a detailed strategy on the medium to long term strategies once he or she joins.

"I compliment the regulator for the expeditious approval of the appointment of Rajiv Anand as the MD and CEO at Indusind Bank," Hinduja said.

The IndusInd board, basis approval of the Reserve Bank of India (RBI), 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, IndusInd Bank said in a late evening regulatory filing on Monday.

Anand's appointment is for three years, and will be taking over the reins at the troubled lender on August 25.

It can be noted that a few years ago, the bank's promoter had received the RBI nod to raise its stake in the bank to 26 per cent from the present level of around 15 per cent.

The bank scrip closed 1.90 per cent up at Rs 819.20 a shares on the BSE on Tuesday, as against a 0.38 per cent correction on the benchmark.