IndusInd Bank , after facing governance and accounting challenges, has outlined a strategic three-year plan to regain its market position and restore investor confidence. The bank, which recently experienced significant leadership changes and financial setbacks, is now focusing on a phased approach to growth and recovery.

Key Developments

• CEO Changes: Sumant Kathpalia and deputy Arun Khurana exited, with Rajiv Anand taking over as the new CEO.
• Financial Impact: The bank took a $230 million hit to accounts and reported its largest-ever loss in the March quarter.
• Recent Performance: Under new leadership, IndusInd Bank reported a net loss in the September quarter, with shrinking loan and deposit portfolios.

Three-Year Turnaround Strategy

Rajiv Anand, the new CEO, has laid out a comprehensive plan for the bank's recovery:

Financial Targets and Focus Areas

1. Return on Assets (ROA): The bank aims to achieve a 1.00% ROA within 12-18 months, down from previous levels before the governance issues.

2. Stock Performance: IndusInd's stock has dropped 18.00% in 2025, compared to an 8.00% rise in the Nifty 50.

3. Business Focus:

   • Grow commercial vehicle financing business (currently worth 358.80 billion rupees)
   • Reduce microloan portfolio market share from over 10.00% to 6.00-8.00%

4. New Opportunities: The bank plans to explore wealth management and acquisition financing.

5. Capital Position: Anand stated that the bank has adequate capital for the next couple of years.

Outlook

IndusInd Bank expects to grow in line with India's banking sector in the coming year, following its organizational overhaul. The bank's focus on specific business segments and its phased growth strategy indicate a cautious yet determined approach to recovery and future growth.

As IndusInd Bank implements its turnaround plan, investors and market watchers will be keenly observing its progress in achieving the set targets and regaining its market position in the Indian banking sector.

In a significant development for IndusInd Bank , Arun Khurana, the bank's deputy chief, has deposited 50% of the alleged insider trading gains with the Securities and Exchange Board of India (SEBI), India's market regulator. This action has resulted in the lifting of restrictions on Khurana's bank accounts.

Background of the Case

IndusInd Bank has been grappling with a crisis involving governance and accounting irregularities. This situation led to the departures of CEO Sumant Kathpalia and deputy Arun Khurana. SEBI launched an investigation into insider trading allegations against six bank officials, including Khurana.

SEBI's Actions and Tribunal's Order

As part of its investigation, SEBI:

• Barred six bank officials from securities markets
• Ordered the deposit of alleged illegal gains totaling 197.80 million rupees

The Securities Appellate Tribunal (SAT) provided partial relief to Khurana in a September 25 order. The order required Khurana to deposit half of the alleged gains with SEBI.

Current Status

Following the SAT order, Khurana has complied by depositing 50% of the alleged insider trading gains. This action has led to the removal of restrictions on his bank accounts.

Impact on IndusInd Bank

This development is part of a larger crisis at IndusInd Bank, which has seen:

1. Governance issues
2. Accounting irregularities
3. Departure of key executives
4. Regulatory scrutiny

The ongoing investigation and its outcomes may have significant implications for the bank's reputation and operations.

Insider Trading Investigation Details

This case underscores the importance of corporate governance and regulatory compliance in the banking sector. As the investigation continues, it remains to be seen how this will affect IndusInd Bank's operations and reputation in the long term.