IndusInd Bank aims for 1% RoA by FY27-end; focus on growing retail book
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
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 • 5 QUESTIONS 1 What is IndusInd Bank's target return on assets (RoA) for FY27?
⌵ IndusInd Bank aims to achieve a 1% return on assets (RoA) by the end of FY27. 2 Why does IndusInd Bank expect to reach a 1% RoA by FY27? ⌵ The bank's management believes that lower expenses, growth in retail loans, and AI-led operational efficiencies will help achieve the target RoA. 3 How has IndusInd Bank's asset quality changed recently? ⌵ 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. 4 How does IndusInd Bank plan to enhance its customer experience? ⌵ IndusInd Bank is investing in technology and AI-led capabilities to improve customer experience and overall productivity. 5 What strategic priorities does IndusInd Bank focus on for growth? ⌵ IndusInd Bank focuses on disciplined growth, balance sheet resilience, and building a diversified portfolio across retail, SME, and rural businesses. Also Read | Bancassurance slowdown hits HDFC Life, ICICI Pru 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.
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