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Informist, Friday, Jan. 23, 2026

--IndusInd Bank: Aim to bring down net NPA to well below 1% going ahead 

--CONTEXT: IndusInd Bank mgmt's comments at post-earnings analyst concall 

--IndusInd Bank: Aim to grow in line with industry average by end of FY27 

--IndusInd Bank: See impact of 1.5-1.7% of loan book from ECL norms 

By Shubham Rana and Shruti Nair

NEW DELHI – IndusInd Bank aims to grow in line with the industry average by the end 2026-27 (Apr-Mar), the lender's management said Friday. The bank is looking to grow in line with the market in FY27 and will then look to gain share in the following year, the lender's Managing Director and Chief Executive Officer Rajiv Anand said. 

"The way I am thinking about this is basically year one, which is (20)26-27 we grow in line with market, (20)27-28 start to gain market share, and (20)28-29 start to dominate in some of the focus areas that we have built out," Anand said at a post-earnings conference call with analysts. The bank reported a net profit of INR 1.61 billion for the December quarter against a loss of INR 4.45 billion in the September quarter. 

The bank's advances fell 13% on year to INR 3.18 trillion as of Dec. 31. Retail loans, the largest segment in the loan book, fell 3% on year to INR 1.61 trillion as of Dec. 31 while wholesale loans were down 28% at INR 1.12 trillion. Consumer banking and vehicle finance were the only segements where loans rose year-on-year.

Anand said the bank will look to increase its market share in the vehicle finance business to around 9% going ahead from around 7.5% at present. The bank will also continue to gain market share in the micro finance business segment, and small and medium enterprise segment in the short to medium term, Anand said.

"The key to all this is to be able to improve both the quality and quantity on the liability side and as we all know there is a mad scramble for deposits in the banking system," Anand said. "Therefore, I am actually not very concerned about being able to gain market share on the asset side. I think the challenge for us will certainly be to be able to improve the quality and quantity of liabilities as we go forward." IndusInd Bank's deposits fell 4% on year to INR 3.94 trillion as of Dec. 31.

The private sector bank aims to bring down its net non-performing asset ratio to "well below 1%" going ahead to around 60-70 basis points, the bank's management said. The net NPA ratio rose 36 bps on year to 1.04% as of Dec. 31. The bank's net NPA ratio had risen to a high of 1.12% in the June quarter before improving to 1.04% in the September quarter. There are clear signs of slippages coming down in the next quarter which will lead to a lower level of credit provisioning and help bring down net NPA ratio, the management said.

Asked about the impact of Reserve Bank of India's draft expected credit loss norms, IndusInd Bank's management said it sees an impact of 1.5-1.7% of loan book. The RBI's draft norms on the expected credit loss framework mandate that banks set aside more funds for potential bad loans on implementation. It also mandates that banks classify non-performing financial assets into three categories based on the period for which the asset has remained non-performing and the "realisability of the dues", while continuing to apply existing rules for classifying non-performing assets. The norms are proposed to come into effect from Apr. 1, 2027.  End

Edited by Akul Nishant Akhoury

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