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Axis Bank Deputy CEO Rajiv Anand is likely to be the frontrunner for the position of IndusInd Bank's Managing Director and CEO, The Hindu Business Line reported citing people familiar with the matter. This comes after the lender's former CEO Sumant Kathpalia resigned in late April, taking moral responsibility for the discrepancies found in the bank’s derivatives portfolio.

According to a source cited by the publication, Anand is one of the obvious choices for the vacant CEO position at IndusInd Bank.

Moneycontrol couldn't independently verify the report.

Axis Bank on April 25 had announced that its Deputy Managing Director Rajiv Anand will retire from his services on August 3 with the completion of his third term as a Director on the lender's board. After his retirement, Anand will continue to be associated with the Axis Group as a Non-Executive Chairperson of Axis Max Life Insurance Limited, the bank had said.

After the announcement, the Axis Bank executive took to X to say, "What an amazing run it’s been! Am ever grateful for the opportunities I got over the years! Now let’s see what the future holds!"

IndusInd Bank on April 29 had announced that its CEO and Managing Director Sumant Kathpalia has resigned from his role. "I undertake moral responsibility, given the various acts of commission/ omission that have been brought to my notice," Kathpalia said in his resignation letter. This comes after RBI granted only a one-year extension to Kathpalia's tenure as the bank's CEO, despite the lender asking for a three-year term.

The bank had sought RBI's approval to constitute a committee of executives to discharge the duties, roles and responsibilities of the Chief Executive Officer (CEO) of the Bank, for an interim period until a permanent CEO is appointed by the bank.

RBI later formally approved the establishment of a "Committee of Executives" to oversee operations during the leadership transition period. As per an exchange filing released by the bank, the newly formed committee will comprise two senior leaders — Soumitra Sen, who currently heads the Consumer Banking division, and Anil Rao, the bank's Chief Administrative Officer.

In March, IndusInd Bank had announced that there were certain accounting lapses in the derivative portfolio which could have a negative impact of 2.35 percent of the bank’s net worth, as of December 2024.

This sent the shares of the lender to a tail spin, with the stock falling 26 percent in a single day and wiping off major sums of investors' wealth. However, external auditor PwC later estimated the discrepancies to have a negative impact of Rs 1,979 crore on the bank’s net worth. The bank accordingly assessed an adverse impact of 2.27 per cent to its net worth as of December 2024.

The bank also engaged Grant Thorton to conduct a forensic review into the accounting lapses. The report submitted on April 26, 2025, said that "incorrect accounting of internal derivative trades, especially in case of early termination, which resulted in recording of notional profits, as the principal root cause for accounting discrepancy".

Notably, the bank's deputy CEO Arun Khurana has also resigned. Khurana, in his resignation letter, wrote, "Considering the recent unfortunate developments, wherein the Bank determined an adverse accounting impact on P&L, on account of incorrect accounting for internal derivative trades, I having oversight of the Treasury Front office function, as the Whole Time Director, Deputy CEO and a part of senior management of the bank, hereby resign, effective immediately."

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