Following a challenging FY25 marked by accounting irregularities and a leadership reshuffle, IndusInd Bank is recalibrating for growth with a renewed focus on retail deposits, secured retail lending, MSME portfolios, and rural outreach. Chairman Sunil Mehta outlined these strategic priorities, positioning the bank for a turnaround grounded in governance and operational sustainability.
Background: A Year of Reckoning
FY25 proved tumultuous for IndusInd Bank. The bank posted a consolidated net loss of ₹2,329 crore in Q4, primarily due to a ₹1,979 crore derivative accounting lapse and related anomalies in its microfinance operations and balance sheet items. These issues prompted internal audits and forced a cultural shift toward transparency, accountability, and renewed governance. Despite the losses, the bank continues to maintain a robust balance sheet with healthy capital adequacy, strong provisions, and ample liquidity.
Strategic Priorities for FY26
IndusInd Bank’s growth framework for FY26 revolves around four pillars:
Retail Liabilities (Deposits):
The bank plans to strengthen its deposit base via high-volume, low-cost retail and CASA products.Secured Retail and MSME Loans:
Secured lending—particularly in home loans, loan against property (LAP), and MSME credit—is set to expand with risk-adjusted growth.Selective Corporate Lending:
The loan book will see a calibrated approach toward corporate exposures to maintain asset quality while seeking creditworthy opportunities.Rural Banking and Bharat Banking Initiatives:
Access to rural markets, with caution around the microfinance segment, will be expanded through targeted outreach and tailored offerings.Digital Innovation & Cross-Sell:
Key areas such as home loans, affluent banking, digital 2.0, merchant acquiring, and micro-market distribution will be scaled to drive synergies across products and channels.
Digital Push for MSMEs: INDIE for Business
IndusInd Bank is accelerating its digital transformation with the launch of ‘INDIE for Business’—a one-stop digital platform aimed at empowering over 60 million MSMEs. Featuring paperless onboarding, real-time account and loan tracking, bulk payments, tax remittances, and multi-role authorization, the platform was lauded at the Finnoviti Awards 2025 for its innovation.
Strategic Impact & Market Outlook
Restoring Confidence: The renewed focus on transparency and ethics seeks to rebuild stakeholder trust and stabilize financial performance.
Diversified Revenue Base: By deepening retail and MSME penetration, the bank aims to reduce dependence on volatile corporate lending.
Rural Inclusion: Bharat Banking initiatives can unlock long-term growth in underserved markets.
Leadership-led Transformation: Incoming MD & CEO Rajiv Anand (to assume office in August) will spearhead the implementation of this ‘One Bank’ strategy.
