Shares of troubled private lender IndusInd Bank Ltd rallied on the bourses on Tuesday, August 5, after the Reserve Bank of India approved the appointment of Rajiv Anand as the new managing director and CEO.
The three-year appointment will run until August 24, 2028, pending shareholder approval at the bank's upcoming general meeting.
At 9.25 a.m., shares of the bank were quoting Rs 842.2, higher by 4.7 percent on the NSE.
Earlier, during the Q1 FY26 investor call, IndusInd Bank Chairman Sunil Mehta had said that the bank was working to strengthen its senior management bench by identifying top-quality leadership talent, both internally and externally.
Domestic brokerage Emkay Global noted, "We believe Anand brings on board an extensive experience across wholesale/retail banking, digital transformation, and capital markets, having worked across global financial institutions including StanC, ANZ Grindlays, HSBC, and lastly at Axis Bank across various functions."
A key overhang on the bank was the possible appointment of a public banker. However, Emkay said, "We view the appointment of a seasoned private banker, versus rumors about the risk of hiring a PSB banker, as a positive development for the bank in the long run."
Regardless, the brokerage believes that the new MD& CEO will have the tough task of rebuilding a leadership team, reorienting the bank’s asset/liability mix, reinforcing governance standards, and restoring stakeholders’ confidence, before setting off a turnaround for the bank once again.
"We believe clarity on the long-term strategic direction may take some more time. In the interim, the stock performance is likely to be driven by near-term outcome on margin and asset quality, with the risk of kitchen sinking remaining a niggling concern," Emkay noted.
The brokerage reaffirmed its 'reduce' call, with a price target of Rs 700 per share.
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