Latest news with #RajivAnand
Time of India
4 days ago
- Business
- Time of India
Mumbai Police launches probe into IndusInd accounting lapses
Mumbai Police initiated a preliminary enquiry into IndusInd Bank following allegations of financial irregularities by former key managerial personnel. The investigation, handled by the Economic Offences Wing, focuses on wrongly booked profits and potential insider trading before the disclosure of accounting lapses in the derivatives portfolio. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: The Mumbai Police have launched a preliminary enquiry (PE) on a complaint filed by private sector lender IndusInd Bank alleging financial irregularities by some of its former key managerial personnel, people in the know told first information report has been registered as yet and the enquiry is at the assessment stage, the people said. A PE is conducted to determine if a cognisable offence has occurred. An FIR is filed if an offence is prima facie established, or the case is closed for want of Economic Offences Wing of the city police, which is handling the case, has recorded statements from staffers linked to a former chief financial officer of the bank and members of the accounts department, the people bank did not respond to ET's queries until press time Tuesday. IndusInd Bank in March disclosed a ₹1,979 crore accounting lapse in its derivatives portfolio . An internal audit later found ₹674 crore wrongly booked as interest from the microfinance business and ₹595 crore in "unsubstantiated balances" under "other assets".According to a senior police officer, the investigation is focused on two key questions: why notional profits were reflected in the bank's balance sheet, and whether certain senior executives offloaded shares before the lapses were made public, making illegal gains. "If required, these former KMPs will be called in for questioning," the officer said. A PE allows the police to summon people linked to a the Securities and Exchange Board of India is also probing the matter for possible securities law violations, the police enquiry is over possible criminal offences, including wilfully causing a loss to the lender."The enquiry commenced after the bank wrote to us about the alleged irregularities. The statements of those recorded so far, along with key digital data, are being scrutinised," the officer Bank, India's sixth largest lender, is working on restoring investor confidence in it after the derivatives fiasco. Earlier this month, the Hinduja Group-promoted bank appointed veteran banker Rajiv Anand as its managing director and chief executive. His appointment followed the sudden exits of CEO Sumant Kathpalia and deputy CEO Arun Khurana in April after the derivative miscalculation came to light, which led to a 25% slide in the bank's stock price, eroding about ₹15,000 crore of its market bank's internal audit department in May submitted a report, which said Rs. 172.58 crore was incorrectly recorded as fee income in the microfinance business over the first three quarters of fiscal 2025. These were reversed in the fourth quarter ended March 31, 2025, the bank said in an exchange filing.
Time of India
06-08-2025
- Business
- Time of India
Top stocks to buy or sell: Stock market recommendations for August 6, 2025
Jefferies has put a buy recommendation on IndusInd Bank with the target price at Rs 920. Analysts said the bank has appointed Rajiv Anand as next MD & CEO for three years. Given his long standing stint at Axis Bank, where he was a deputy managing director, analysts see this as a key positive for the lender. A reorganization of the top management of the team may be the key initial steps for Anand, analysts said. They would also watch out for joiners from Axis and other banks. The key expectations would be improved fee, assets and operating efficiency, besides restoration of the bank's credibility, they said. Nuvama has downgraded ABB India to hold from buy with the target price cut to Rs 5,400 from Rs 6,650 earlier. Analysts said the company reported weak large-ticket order inflows amid cyclical slowdown and margin pressure is expected to continue. They have cut the company's earnings per share (EPS) by 11% for CY25 and by 9% for CY26. Also price-to-earnings (P/E) ratio has been revised to 55x from 65x. Analysts said profit after tax (PAT) margin guidance of 12-15% depends on quarterly order inflow of Rs 3,800 crore to Rs 4,000 crore. Private capex revival and order pipeline key to upside, they said. Macquarie maintained an outperform rating on AB Capital with the target price at Rs 335. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo Analysts said the company was on a strong footing with the NBFC reporting PAT that was in line with estimates, while its operating leverage drove return on assets (ROA) expansion. The company's credit costs were stable but stress increased in the unsecured SME space. UBS has a buy rating on MCX with the target price at Rs 10,000. Analysts said there were three main takeaways from the company's recent concall. For one, MCX wants to focus on launching new products, including cash-settled index options; increase retail participation, particularly in bullion, and it's making efforts to enhance liquidity in electricity derivatives. The company's board recently approved a stock split (1:5 ratio). Goldman Sachs maintained buy rating on Marico with the target price hiked to Rs 800 from Rs 780. Analysts said that the company reported a strong broad based volume growth acceleration to 9%, which was highest among the FMCG peers. The company's turnaround in its value-added hair oil business was a key positive, and new businesses surpassed growth metric expectations. The company has set aggressive targets for FY28 growth and profitability. However, unprecedented inflation in copra has pushed out margin recovery to FY27. Stay informed with the latest business news, updates on bank holidays and public holidays .
Entrepreneur
05-08-2025
- Business
- Entrepreneur
IndusInd Bank Appoints Rajiv Anand as CEO for Three-Year Term
Anand's tenure will begin on August 25, 2025, and conclude on August 24, 2028, the bank said in a regulatory filing. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. IndusInd Bank on Monday announced the appointment of veteran banker Rajiv Anand as its chief executive officer for a three-year term. His tenure will begin on August 25, 2025, and conclude on August 24, 2028, the bank said in a regulatory filing. The appointment comes after the Reserve Bank of India approved Anand's candidature. The lender had been operating without a full-time CEO since April, when Sumant Kathpalia stepped down, taking moral responsibility for the derivatives accounting controversy. During the interim period, the bank's operations were overseen by a committee of senior executives, including Soumitra Sen, head of consumer banking, and Anil Rao, chief administrative officer. Anand, aged 59, retired as deputy managing director of Axis Bank on August 3 after completing his third term as a board director. According to reports, he was among three shortlisted candidates for the role, alongside Rahul Shukla and Anup Saha. A chartered accountant by qualification, Anand brings more than 35 years of experience in asset management, retail banking, and wholesale banking. He began his journey with Axis Group in 2009 as the founding managing director of Axis Asset Management Co. In 2013, he moved to Axis Bank as president of retail banking, later taking charge of wholesale banking in 2018. IndusInd Bank has been under close watch following an INR 1,960-crore loss tied to misaccounted internal derivative trades. The bank has stated that the losses stemmed from errors in accounting, particularly in cases where derivative contracts were terminated early. These mistakes led to inflated notional profits that masked the true condition of the derivatives portfolio over several reporting periods. With Anand's appointment, the bank is expected to focus on restoring stakeholder confidence and addressing operational challenges.
Economic Times
05-08-2025
- Business
- Economic Times
Rajiv Anand to help realise full potential of IndusInd Bank, says promoter Ashok Hinduja
Synopsis IndusInd Bank promoter Ashok Hinduja has extended full support to newly appointed CEO Rajiv Anand, who will assume charge on August 25. Anand's appointment follows leadership exits and financial setbacks, including a ₹2,329 crore loss in Q4. Hinduja praised the RBI for its swift approval. The bank expects Anand to unveil a long-term strategy as it moves past past issues. Agencies 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. PTI
Mint
05-08-2025
- Business
- Mint
Why Rajiv Anand might just be what the doctor ordered for IndusInd Bank
Shayan Ghosh Rajiv Anand, known for his long-term vision and steady leadership, has been appointed managing director and chief executive of IndusInd Bank, filling a post vacant since end-April after past accounting discrepancies triggered a trust crisis. Rajiv Anand, IndusInd Bank's new MD and CEO. (S. Kumar/Mint) Gift this article Lamba socho (thing long-term). This is what senior banker Rajiv Anand offered as his advice to youngsters during a podcast. 'Careers, lives are a marathon, not a hundred-meter dash. Therefore, you will get the full benefits of your career, your life in the long term." Lamba socho (thing long-term). This is what senior banker Rajiv Anand offered as his advice to youngsters during a podcast. 'Careers, lives are a marathon, not a hundred-meter dash. Therefore, you will get the full benefits of your career, your life in the long term." Anand, who was deputy managing director at Axis Bank Ltd, was speaking with Sameer Shetty, group executive, digital banking and transformation, Axis Bank, in a podcast episode uploaded to YouTube on 1 August. Three days later, Anand was named as the next managing director and chief executive of IndusInd Bank Ltd, a role that had two more contenders. In a late-evening filing to the stock exchanges on Monday, the private sector lender that's been in the news since March for all the wrong reasons, said Anand's three-year term will begin on 25 August. For IndusInd Bank, Anand's appointment fills up a position lying vacant since end-April when erstwhile CEO Sumant Kathpalia quit taking 'moral responsibility". On 10 March, the private sector lender acknowledged discrepancies in its derivatives portfolio in the October quarter, sparking a 27% crash in its shares the next day. The incorrect accounting of derivative trades led to a ₹ 1,959-crore hole in the bank's books. Anand's colleagues described him as a cool-headed individual who can lighten the mood with his humour. A former colleague of Anand said he is clear about what he wants but does not micromanage his team. 'As a leader he delegates tasks and would let you fail, instead of dictating what you should do." IndusInd Bank had reportedly submitted the names of three CEO candidates to the Reserve Bank of India. The other two were Rahul Shukla, who is 'taking personal time off" from his role at HDFC Bank Ltd, and former Bajaj Finance Ltd managing director Anup Saha, who stepped down on 21 July citing personal reasons. After the crisis: IndusInd Bank begins aggressive hunt for brand-new leadership 'A steady hand' What is likely to have worked in Anand's favour as RBI looked to speed up the CEO approval process is his breadth of experience. Per his LinkedIn profile, Anand began his career at HSBC in 1990 as a trader in government and corporate bonds. This was followed by stints at ANZ Grindlays Bank, IDFC Asset Management Company, Standard Chartered Bank, and Axis Asset Management, before moving to Axis Bank in 2013, climbing to the role of deputy managing director in December 2021. Anand's experience across debt, equity, treasury, retail, and corporate banking should work well for IndusInd Bank. The lender has been grappling with trust issues ever since it disclosed the discrepancies in its derivatives accounting practices. There were subsequent disclosures, including troubles in the microfinance book as well. 'IndusInd Bank needs someone with a steady hand and Rajiv is just the right guy," said another of Anand's former colleagues. 'I cannot think of anyone with that kind of experience across teams." The market cheered the news of IndusInd Bank's new CEO, with the stock moving up as much as 5.5% in intraday trade on NSE Tuesday. At 2pm, the shares were up 1.62% at ₹ 817.10 each, while the Nifty Bank index was down 0.62%. For the three months through June, IndusInd Bank reported a muted net profit of ₹ 604 crore, down from ₹ 2,171 crore in the year-ago first quarter because of lower income and higher provisions. While disappointed with the bank's asset quality, analysts had pegged their hopes on the CEO appointment. 'While near-term profitability is likely to remain low, the potential for a 1% RoA (return on assets) in the medium term, the potential appointment of a new CEO and lack of any carryover from last quarter's cleanup exercise can drive potential upside, given the sub-book valuation," analysts at Sanford C Bernstein (India) Pvt. Ltd said in a note on 28 July. No shortcuts Another positive for Anand would be the confidence reposed by RBI on not just him but also on the bank. RBI governor Sanjay Malhotra has publicly said that on the whole, 'the bank is doing well". Those who have worked with Anand, also painted a picture of someone who does not take shortcuts. According to another former colleague from Axis Bank, Anand follows regulations to a tee. That is exactly something IndusInd Bank would need him to do, ensuring teams stay guarded against any potential discrepancies. 'Rajiv is also quite focussed on building a brand and will be a good fit when it comes to restoring confidence in a brand," said this person. The second former colleague quoted earlier described Anand as a follower of cricket and a golfer, but not someone who would see everything from the lens of cutthroat competition. This colleague said he has always seen a poster of former Indian cricketing great and leg spinner Anil Kumble's poster in Anand's cabin. Known for his persistence and resilience, Kumble's 10-wicket haul against Pakistan in 1999 is etched in the memories of fans of the game. With a herculean task ahead of him at IndusInd Bank, perhaps Anand needs a performance equal to the legend he followed so closely. Topics You May Be Interested In
