Mumbai: After weathering a storm of controversies, IndusInd Bank has laid out its roadmap for the coming years. The lender plans to match the Indian banking industry’s pace by fiscal 2026-27.
Rajiv Anand, the newly appointed chief executive who previously worked at Axis Bank, is now focused on strengthening the balance sheet. Building up deposits will be his immediate priority.
The bank, controlled by the UK-based Hinduja family, went through considerable turmoil earlier this year. Financial record-keeping errors emerged, forcing then-CEO Sumant Kathpalia to step down. Deputy chief Arun Khurana also departed around the same time.
Troubles surfaced when irregularities worth nearly two thousand crore rupees came to light in the derivatives portfolio. The March quarter witnessed the bank’s worst-ever losses.
Recent September quarter results weren’t encouraging either. Losses exceeded four hundred crore rupees. Total earnings dropped by over ten percent. Both lending and deposit collections contracted.
Yet Anand maintains confidence about the future. He projects that returns on assets will reach the one percent mark within eighteen months. This indicator reflects how effectively the bank utilizes its resources.
What’s noteworthy is the bank’s stance on external funding. Several rival banks recently attracted foreign investments to restore market confidence, but IndusInd won’t pursue that route.
Our current capital position is solid. We won’t require additional funds for at least two years,” Anand clarified.
The bank is eyeing fresh business areas too. Serving wealthy clients, financing company acquisitions, and offering loans backed by equity holdings are potential new ventures. Regulatory approvals will naturally be necessary.
The bank’s footprint now extends beyond three thousand branches. Customer count has crossed four crore.
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Stock market performance has been disappointing though. Share prices declined substantially over the year, even as broader markets stayed positive.
Anand’s team is now concentrating on commercial vehicle financing. Meanwhile, the microfinance business is being gradually scaled back. A three-year revival plan is underway.
Chairman Sunil Mehta has admitted the lapses and assured stakeholders that thorough investigations were conducted. The board examined all issues carefully and reflected them in financial statements.
The bank continues serving customers in western and southern India through its subsidiary operations. Despite recent setbacks, it remains among India’s prominent private sector lenders.
Anand believes regulatory changes around liquidity norms will help. He also expects demand to pick up once festive seasons approach and rural consumption improves.
The strategy emphasizes selective corporate lending, secured retail advances, and building the MSME portfolio. Retail deposits will get special attention as the bank aims to increase their share significantly.
Industry watchers will keenly observe whether this turnaround plan succeeds. The bank faces stiff competition from both established players and nimble fintech companies. Restoring investor trust after governance issues will take time and consistent performance.
For now, the focus remains on stabilizing operations, maintaining asset quality, and preparing for growth once market conditions improve. The bank hopes its three-decade legacy and customer relationships will help it bounce back stronger.
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