IndusInd Bank aims for 1% RoA by FY27-end; focus on growing retail book
The private-sector lender posted a consolidated net profit of ₹1,037 crore for the June quarter, up 72% on year and 75% on quarter, largely led by a decline in operating expenses and provisions.
IndusInd Bank aims to end the current financial year with a 1% return on assets (RoA) on the back of lower expenses, growth in retail loans and liabilities, and AI-led operational efficiencies, managing director and chief executive Rajiv Anand said during the bank’s post-earnings call on Wednesday.
Anand, who took over as head of the bank on 25 August 2025, replacing Sumant Kathpalia, said balance-sheet recalibration over the past year has led to improvements in the bank’s deposits, asset quality, profitability and capital position.
“We have been saying that we will grow in line with the market and look to deliver 1% exit ROA in FY27. We stand by that,” Anand said. RoA for the reporting quarter was 0.78%, 32 basis points higher sequentially and 33 bps higher from the previous year.
Quick answers to key questions
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QUESTIONS
IndusInd Bank aims to achieve a 1% return on assets (RoA) by the end of FY27.
The bank's management believes that lower expenses, growth in retail loans, and AI-led operational efficiencies will help achieve the target RoA.
IndusInd Bank's gross non-performing asset (GNPA) ratio improved to 3.25% as of June 30, 2026, down from 3.43% as of March 31, 2026.
IndusInd Bank is investing in technology and AI-led capabilities to improve customer experience and overall productivity.
IndusInd Bank focuses on disciplined growth, balance sheet resilience, and building a diversified portfolio across retail, SME, and rural businesses.
Anand was appointed chief executive of the bank after former DEO Kathpalia resigned effective 29 April 2025, taking "moral responsibility" for derivative accounting practices that resulted in an estimated loss of around ₹1,960 crore for the bank.
“Q1 marks a clear inflexion point for the bank,” Anand said on Wednesday, adding that the bank has entered the next phase of its journey. The lender is focused on “accelerating sustainable risk-adjusted growth” from a significantly stronger operating foundation which positions it to deliver stronger growth, improving profitability and better returns in the coming quarters, he added.
Q1 results
The private-sector lender posted a consolidated net profit of ₹1,037 crore for the quarter, up 72% on year and 75% on quarter, largely led by a decline in operating expenses and provisions, both annually and sequentially. Net interest income grew 1% on year and 7% on quarter to ₹4,685 crore, and net interest margin (NIM) was 3.57%, better than 3.39% in the previous quarter and 3.46% a year ago.
While margins have been supported by the increase in share of higher yielding wholesale loans, NIM is expected to be range bound for the full year, chief financial officer Viral Damnia said.
“We've seen a reduction both on cost of deposits and yield on advances. So some of that is offsetting each other,” Damania said, adding that as the bank starts growing other lines of retail business especially vehicle loans and microfinance, the lower yield impact will start reflecting in the margins again.
“NIM averages out over the course of the year. Intra-quarter, you could see some movements, but from an annual perspective, that is pretty much kind of the case,” he added.
“We are entering FY27 from a position of greater resilience with stronger fundamentals and improving business momentum,” Anand said. He added that the priority is to accelerate profitable growth across retail, small and medium enterprises, rural and wholesale banking; deepen the deposit franchise; scale transaction banking capabilities; and leverage digital and AI investments to enhance customer experience, productivity and risk management.
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Anshika Kayastha
Driven by a passion for news and commitment to accurate and ethical reporting, Anshika Kayastha has been covering the full spectrum of BFSI—from banks and NBFCs to fintechs, insurance, payments, regulators, personal finance and money markets for the past 13 years.
Based in Mumbai, her work at Mint spans comprehensive and insightful stories on sectoral trends, regulatory and policy shifts, corporate strategies, governance, and innovation. With a particular interest in fintech, she keeps a close watch on emerging players, disruptive business models, and the evolving regulatory landscape.
Prior to joining Mint in July 2024, Anshika honed her craft at The Hindu BusinessLine and Informist Media, to deliver incisive, well-sourced reporting on the forces shaping India's financial services. She holds a degree in media and communication from Symbiosis University.
When she's not tracking the latest RBI circular or tenaciously pursuing the next story, Anshika is most at home in the mountains of Himachal Pradesh. Warm, social, and endlessly curious, she's a self-confessed credit card enthusiast, and brings that same energy to offbeat TV series, puzzles, beach vacations, and competitive game nights.
Source: Livemint — Companies
