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Informist, Wednesday, Jul. 22, 2026

 

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--IndusInd Bk: Resumed growth on wholesale loans; retail, SME remain stable 
--CONTEXT: Comments from IndusInd Bk mgmt in post earnings press conference 
--IndusInd Bk: Expect to use AI for risk management, customer engagement 
--IndusInd Bk: Well capitalised to support future growth 
--IndusInd Bk: We are seeing strong traction in FCNR (B) deposits 
--IndusInd Bk: Expect to garner 3.6% of total FCNR (B) flows into India 
--IndusInd Bk: Next move from RBI certainly not a rate cut 
--IndusInd Bk: Expect to see tighter system liquidity going forward 
--IndusInd Bk: Expect to grow balance sheet in line with market 
--IndusInd Bk: Will add to workforce, not looking to reduce it 
--IndusInd Bk: Expect microfin and credit card ops to grow Q2 onwards

 

MUMBAI – IndusInd Bank is seeing a strong traction in the foreign non-currency resident bank deposits, the bank's management said at a post-earnings press conference Wednesday. The private sector lender aims to garner flows under the FCNR (B) scheme through a mix of unleveraged money, its own leverage through the Gujarat International Finance Tec-City, and leverage through partner banks.

 

"Our overall market share on the NRI (non-resident Indian) side is actually higher than our domestic market share...our NRI market share is around 3.6%. We are reasonably confident that we should be able to garner at least 3.6% of the flows that come in through the FCNR (B) route, which we will know towards the end of September," a senior official at the bank said.

 

The next move from the Reserve Bank of India is not going to be a rate cut, the management said. "RBI has guided that we are certainly in a higher inflationary environment," the management said.

 

The lender expects tighter liquidity going forward and is unsure whether the FCNR (B) deposits will lead to an improvement in the liquidity. "...one, it (liquidity) will be dependent on how much money comes in. Two is what RBI will do with the dollars that come in, meaning that it could sterilise the entire amount, it could use some of these amounts to unwind some of the short positions it runs, in which case the rupees may not come into the system. Or it may use a combination of all these three, put some liquidity in the system, reduce short positions and sterilise some amounts," the management said.

 

 

The lender has taken a calibrated call to readjust its portfolio and will work toward ramping up the credit card volume. It expects the microfinance and vehicle finance segments to grow Jul-Sept onwards, the management said.

 

On the asset side, the lender said it has resumed growth on the wholesale book, while the small and medium-sized enterprises and retail portfolios remain broadly stable. IndusInd Bank is well positioned to deliver sustainable growth on the back of strong capital, ample liquidity, and improving asset quality.

 

The bank expects its assets and liabilities to grow broadly in line with the market with an exit return on assets of 1%, the management said. The net interest margin is expected to average out through the year. However, the margin may move upwards or downwards within the quarters. For the June quarter, IndusInd Bank's net interest margin was 3.35%, down from 3.39% a quarter ago.

 

The on-year fall in operating expenses was primarily attributable to the improvement in operating efficiency, the management said. "It's not like we are degrowing or de-investing. It's simply operating efficiency digging in. At the same time, our employee costs and IT (information technology) expense is going up," a senior official at the bank said. IndusInd Bank has been adding more people to its workforce, particularly on the retail side, and does not envisage any reduction in its workforce, the management said.

 

The lender continues to scale up the adoption of artificial intelligence across the bank and is leveraging its digital and AI investments to enhance customer experience, productivity, and risk management.

 

IndusInd Bank posted a net profit of INR 10.03 billion for the June quarter and a total income of INR 130.95 billion. Wednesday, shares of the lender ended marginally higher at INR 1,069.30 apiece on the National Stock Exchange. The Mumbai-based private sector bank announced its results for the June quarter after market hours.  End

 

Reported by Nandini Sinha and Kabir Sharma

Edited by Akul Nishant Akhoury

 

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