India's IndusInd Bank jumps on naming Rajiv Anand as CEO, raising hopes of a turnaround
The stock was the top gainer on the Nifty Bank (.NSEBANK), opens new tab and Nifty Private Bank (.NIFPVTBNK), opens new tab indexes, which were trading 0.3% and 0.1% lower, respectively.
It was also the biggest gainer on the benchmark Nifty 50 (.NSEI), opens new tab, which was down 0.5%.
The lender named Anand as CEO following approval by the Reserve Bank of India, which has final authority on senior banking appointments.
Anand, a veteran banker, is currently deputy managing director at Axis Bank (AXBK.NS), opens new tab and has held key management positions at leading global financial institutions.
IndusInd Bank took a $230 million hit in the year ended March 31 due to misaccounting in internal derivative trades, prompting the resignations of CEO Sumant Kathpalia and deputy Arun Khurana in April.
In the interim, the bank has been steered by the board and two senior officials.
The stock, which has lost 8.5% of its value since the disclosure of the accounting discrepancies in March, was last trading 2.5% higher at 823.15 rupees.
Citi analysts said Anand's 35-plus years of banking experience and track record in scaling retail and corporate businesses are key positives.
The appointment of a seasoned private banker has raised hopes of an early turnaround, said Emkay Global.
Reorganising the bank's top management may be among Anand's initial top priorities, Jefferies analysts said, reiterating a "buy" rating on the stock.
The stock carries an average "sell" rating, with a median price target of 750 rupees, per data compiled by LSEG.
Despite Tuesday's gains, IndusInd Bank is the worst year-to-date performer on both the Nifty Bank and Private Bank indexes, down 14%.
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