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Informist, Friday, Apr. 24, 2026

 

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--IndusInd Bk: If West Asia war prolongs, may see hit to portfolio in 2 qtrs 
--IndusInd Bk: Don't see material hit from W Asia war on asset quality as yet 
--CONTEXT: Comments by IndusInd Bank mgmt at analyst call post Q4 earnings 
--IndusInd Bk: Watchful of vehicle loan segment amid West Asia conflict 
--IndusInd Bk: Focused on scaling micro loan portfolio in calibrated manner 
--IndusInd Bk: Leadership transition complete, focus on execution now 
--IndusInd Bk: Aim to cut large cos' share in loan book, raise small cos' 
--IndusInd Bk: Aim to cut net NPA by 60 bps, but don't have timeline

 

By Krity Ambey and Shumaila Firoz

 

NEW DELHI – If the West Asia war prolongs, IndusInd Bank may see an impact on its loan portfolio in two quarters, the bank's management said Friday. However, as of now, the lender does not expect any material impact on its asset quality, the management added. 

 

The bank, half of whose loan book comprises retail loans, is watchful of its vehicle loan segment, the management said in a call with analysts after releasing earnings for the March quarter. Vehicle finance constitutes 32% of the bank's loan book. 

 

The bank is also looking to scale up its microfinance business but in a calibrated manner, the management said. The slippage in the bank's microfinance segment, which weighed on its performance in the last two consecutive quarters, fell 87% in the March quarter. The bank's provisions for bad loans also declined 39% on year and 29% on quarter to INR 14.84 billion in Jan-Mar. 

 

The bank reported a net profit of INR 5.33 billion in the March quarter, over three times higher than the bottom line seen in the December quarter. The bank had posted a loss of INR 22.36 billion in the March quarter last year due to incorrect accounting, for which it had entirely provisioned in the same quarter. 

 

Following the discovery of accounting discrepancies last year, the then managing director and chief executive officer, and the chief financial officer quit, and a new management has been appointed. The leadership transition at the bank is now complete, and the next step is execution of a fresh strategy to revert to growth mode, the management said.

 

The bank aims to raise the share of small and medium enterprises in its loan book and cut the share of large corporates, the management said without giving any estimate. Currently, large corporates constitute 15% of the loan book, while the share of loans to small and medium enterprises is 14%. 

 

IndusInd Bank also aims to improve its asset quality and cut its net non-performing asset ratio by 60 basis points, the management said without giving a timeline. The bank's net non-performing asset ratio fell to 1% as of Mar. 31 from 1.04% as of Dec. 31. Its gross non-performing asset ratio was 3.43% at the end of March quarter, compared to 3.56% at the end of December quarter. Shares of the bank closed at INR 847.95 on the National Stock Exchange Friday, down 1.4% from the previous close. It released its March quarter earnings post market hours.  End

 

Edited by Deepshikha Bhardwaj

 

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