30 August, Saturday: The Annual General Meeting (AGM) of IndusInd Bank caused a pragmatic shift in the organization's roles and governance. A new step by the promoter, IndusInd International Holdings Ltd (IIHL), to transfer the bank's articles of association and add two of their own nominees to the executives was firmly resisted by shareholders in a crucial vote. 54.04% of the voting shareholders declined the proposal, posing a strong stance for a strong independent futuristic plan and improved corporate governance, even though it had earlier been passed by the board and the Reserve Bank of India (RBI).
Contribution of IIHL
IIHL, a longtime investor and founding supporter of the bank, said it was disappointed with the result. The promoters contended that their dedication and investment, as evidenced by their premium subscription of warrants worth Rs 2,683 crore and the significant decline in their stake over time, showed that they were in line with the interests of shareholders. To better support the bank, IIHL also cited adherence to the RBI's changing ownership guidelines, which caused them to reduce their stake from over 90% in 1994 to roughly 15% at this time. The group is now requesting regulatory approval to increase this to 26%. IIHL added that concerns by proxy advisors may have been based on misinterpretation and that ongoing dialogue would be initiated to address matters of transparency and governance.
Rajiv Anand as director
The appointment of Rajiv Anand as Managing Director and CEO was unanimously approved by shareholders, even though the promoter's board representation suffered a setback.
Anand, a seasoned leader in retail and wholesale banking who had previously worked for Axis Bank, assumed leadership of the bank on August 25, 2025, for a three-year term. As IndusInd Bank attempts to bounce back from recent financial setbacks, including record-breaking derivative losses and a leadership change, the endorsement, which received nearly 99 percent of the vote, comes at the right time.
