InduInd Bank is planning an overhaul with the aim of boosting profitability and cleaning up underperformance, as per Bloomberg News.
The bank’s new Chief Executive Officer (CEO), Rajiv Anand, told Bloomberg News that the restructuring at IndusInd Bank will “clean up” the organisation and lead to exits for low performers, without affecting headcount. Additionally, he claimed that the bank will invest more in AI and retail business expansion to strengthen its balance sheet.
Recently, IndusInd Bank investigated accounting discrepancies worth ₹1,960 crore, which led to the exit of its former CEO alongside many key senior executives. The bank has replaced several executives in core control functions, including its chief financial officer, and added a new internal auditor and a strengthened assurance team, Anand said. A new chief risk officer will join by January as the current one retires.
A few days back, IndusInd Bank even started the process of clawing back salary and bonuses from its former CEO, Sumant Kathpalia, and deputy CEO, Arun Khurana.
When talking about the scandals that IndusInd Bank found itself at the centre of in the recent past, Anand claimed that the bank has accumulated “organisational cholesterol” that has slowed execution.
“In every organisation, there is regular restructuring where employees who are not performing as expected are let go. That happens everywhere, and it will continue to happen at IndusInd,” said Anand. He also assured that this does not mean that there will be any large-scale layoffs.
The new CEO has aims on reaching 1% return on assets within 18 months, calling it the first milestone in the bank’s turnaround. This, he believes, will show that the bank “is on the mend. Then we can reset ambitions.”
