In Rajiv Anand’s first interaction with a few business head of IndusInd Bank, his message was loud and clear – compliance first, anything else can come later.
The meeting, which is said to have happened earlier this month, was his first formal interaction with business heads, said a source aware of the matter who didn’t want to be named because the meeting behind closed doors.
Rajiv Anand took charge as MD & CEO of IndusInd Bank on August 25, after superannuating from Axis Bank as its deputy managing director. It is gathered that he has given the business heads a 45-days deadline to make a presentation on the steps and efforts needed to be taken to improve business compliance, processes which need to be tightened and the financial impact of these measures on each of the businesses.
No fancy presentations please
“When Rajiv called for a meeting with businesses heads, he said he didn’t want elaborate powerpoint presentations on the business and plans for growth. Instead, he directed to the teams to make a simple but detailed excel sheet working on the weaknesses in the business, processes that need tightening and how much impact or loss can result if these changes are implemented,” said a senior executive who spoke on conditions of anonymity.
The key takeaway, another source said, was focusing on cleaning up the books and “ensuring that there are no skeletons in the cupboard”.
Stick to the rule book
It is gathered that Anand was also clear that under his watch the bank should not be pulled up by the Reserve Bank of India for any deficiencies in compliance. Everything should be as per the rulebook and no deviations will be tolerated; is the message he is said to have left with the business heads.
Industry sources say Anand’s message to employees is on the lines of what R Subramaniakumar told his teams when he took over as MD & CEO of RBL Bank in July 2022.
Growth cannot be at the cost of compliance, is something Anand reiterated multiples times in the meeting, say people aware of the matter.
“This is a natural strategy to adopt when the bank has come out from a very tough period. Efforts are concentrated on cleaning up the financials, rather than prioritizing growth in the near term,” said a senior executive of a private bank who did not want to be named.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
