IndusInd Bank share price jumped nearly 5% today, snapping a recent downward trend. The stock, which has been under pressure for the past few months, saw renewed interest from investors following a key regulatory approval and leadership update.
Here is what moved the stock.
RBI clears new CEO appointment
The Reserve Bank of India has approved the appointment of Rajiv Anand as the new Managing Director and CEO of IndusInd Bank. His three-year term begins on August 25, pending shareholder approval.
Anand, who earlier served as Deputy Managing Director at Axis Bank, brings decades of experience in banking and finance.
The leadership change comes at a time when the bank has been looking to enhance its management structure, something the chairman had flagged during the recent Q1 investor call.
Management reshuffle
The new appointment is being seen as part of a broader reset within the bank’s top leadership.
Sunil Mehta, the Chairman of the Board of Directors, IndusInd Bank said: “On behalf of the Board, I congratulate Rajiv Anand on his appointment as the MD & CEO of the Bank. The Board looks forward to working closely with Rajiv and the management team to deliver strong and robust growth while prioritizing highest standards of governance. The Board would like to express its gratitude to the Reserve Bank of India for its invaluable support throughout the process. The Board, the Management team and all employees look forward to welcoming Rajiv to the IndusInd family and growing this franchise to it’s full potential.”
Jefferies on IndusInd Bank
Global brokerage firm Jefferies has reiterated its ‘Buy’ rating on the stock. The firm has set a target price of Rs 783.70, implying an upside potential of around 17% from current levels.
According to Jefferies, the bank’s move to appoint Rajiv Anand as Managing Director and CEO for a three-year term starting August 25, 2025, is a significant development.
“Given his longstanding stint at Axis Bank, where he was the DMD, we see this as a key positive for IIB,” the report said.
The brokerage expects Anand’s appointment to trigger reorganisation at the top management level, which could include fresh hires. “Reorganisation of IIB’s top mgt team may be the key initial steps; we will watch out for joiners from Axis/other banks,” the report noted.
According to Jefferies, the next leg of growth for IndusInd Bank will depend on multiple factors, especially its ability to boost fee income, asset quality, and operational efficiency.
IndusInd Bank share performance
Despite the day’s gains, the stock remains under pressure on a longer timeframe. It is still down 15% so far in 2025 and has fallen 22% in the last six months. The one-month return stands at negative 4%.
As of now, IndusInd Bank’s market capitalisation is around RS 64,130 crore. The stock hit a day’s high of Rs 837 on the BSE and was last seen trading at Rs 842.20 on the NSE. Its 52-week range spans from Rs 1,498, the high to Rs 606, the low.