Hinduja Group-Backed IndusInd Bank Plans for Sweeping Overhaul Post-Probe

As per Economic Times report, IndusInd Bank, backed by the Hinduja Group, is undergoing significant restructuring following governance challenges and a probe into a ₹1,960 crore accounting gap. New CEO Rajiv Anand is driving this revamp to enhance operational efficiency, profitability, and digital transformation. 

IndusInd Bank's Turnaround Strategy Led by New CEO 

Rajiv Anand, recently appointed as CEO, outlined a series of internal reforms targeting improved performance and asset returns. The bank faced losses in Q2 and reported a return on assets of -0.33% compared to 1.88% from peer Kotak Mahindra Bank. Anand aims to achieve at least 1% return on assets in the next 18 months as a benchmark of institutional recovery. 

The revamp involves trimming inefficiencies, introducing performance-based exits, and bringing in fresh leadership for key roles such as CFO, internal auditor and risk officer. While low-performing staff may be asked to leave, no mass layoffs are planned. The bank intends to remain lean and agile going forward. 

Focus on AI Integration and Retail Expansion 

In a bid to modernise and stabilise earnings, IndusInd will heavily invest in artificial intelligence and broaden its retail lending focus. The bank, traditionally known for commercial vehicle and microfinance lending, will now focus on home loans and loans to micro, small and medium enterprises (MSMEs). This is expected to enhance predictability and balance sheet resilience. 

IndusInd also sees opportunities in wealth management by tapping into rising affluence in tier 2 and 3 cities. Anand described the current state of the organisation as clogged with "organisational cholesterol" and in need of simplification and digital transformation for faster execution. 

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Governance Repairs Following ₹1,960 Crore Accounting Gap 

The current restructuring follows a governance shakeup stemming from a ₹1,960 crore discrepancy unearthed in the accounts during a recent probe. This led to the resignation of the previous CEO and senior members in control functions. The bank responded swiftly by onboarding fresh compliance and risk leadership. 

Despite recent losses, the bank is “very well capitalised” and does not intend to seek fresh capital over the next 2 years. Anand has denied any discussions with global private equity firms regarding capital infusion, signalling internal confidence in its recovery path. 

IndusInd Bank Share Price Performance 

As of November 21, 2025, at 11:01 AM, IndusInd Bank share price was trading at ₹840.00 up by 1.28% from the previous closing price. 

Conclusion 

IndusInd Bank has embarked on a comprehensive restructuring under new leadership to tackle governance issues and operational inefficiencies. The strategic emphasis on AI, retail expansion, and internal clean-up suggests a roadmap aimed at restoring profitability and trust. 

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