IndusInd Bank to cut ‘low performers’ as new CEO begins turnaround plan

Private-sector lender IndusInd Bank plans to lay off “low performers” as part of a restructuring exercise to boost profitability under its new Chief Executive Officer, Rajiv Anand. According to a Bloomberg report, Anand said the bank is prepared for a cleanup and expects to take action in the coming days. The layoffs will target underperformers without reducing the overall headcount, he added.

IndusInd Bank employs more than 44,000 people and operates across over 3,000 branches in India.

The lender also plans to sharpen its focus on artificial intelligence-driven operations and expand its retail business to strengthen its balance sheet.

Backed by the Hinduja Group, IndusInd Bank has faced a turbulent phase, including a probe into a ₹1,960-crore accounting discrepancy that led to the exit of its former CEO and other senior executives.

In Q2, the bank reported a consolidated net loss of ₹437 crore, compared to a net profit of ₹1,331 crore in the same period last year. Its net interest income fell 18% year-on-year to ₹4,409 crore from ₹5,347 crore, as its net interest margin declined to 3.32% from 4.08%.

Anand said the lender had accumulated “organizational cholesterol,” referring to inefficiencies and legacy processes affecting execution. He has set a target of achieving a 1% return on assets within 18 months, calling it the first milestone in the bank’s turnaround strategy.

Historically known for commercial vehicle financing and microfinance, IndusInd now plans to broaden its retail asset portfolio, including home loans and MSME lending. Wealth management will also be a key long-term focus, Anand said.

Before joining IndusInd, Anand served as Deputy Managing Director at Axis Bank.