IndusInd Bank MD and CEO Rajiv Anand has set out a plan to bring the bank’s performance back in line with system-level growth by FY27, with the lender aiming to achieve a 1% return on assets within the next 12 to 18 months. The strategy will be driven by the bank’s established commercial vehicle financing franchise and a push into newer areas such as wealth management, acquisition financing and loans against shares, ToI reported.
In an inerview to ToI, Anand said the bank is undertaking changes across governance, controls and culture as part of this effort. Responding to questions on governance and cultural shifts, he said the bank has brought in a new chief financial officer, a new internal audit head, a new general counsel and will add a new chief risk officer by the end of January. According to him, steps are also being taken to strengthen assurance functions and rework internal processes to reduce manual intervention or put in place stronger controls.
“The most important change is tone from the top—we want world-class governance, not just industry-standard governance,” he said, adding that the bank is rebuilding teams with “high-integrity professionals” from both within and outside the financial sector to reinforce culture across the organisation.
Regarding treasury and derivatives operations, Anand said that control gaps had been identified earlier, and a project team was formed to address them. He said most controls have now been put in place, with a few still being implemented. These fixes are being externally validated. He said the bank is also reviewing other parts of its operations to identify any further gaps.
On the question of raising capital, Anand said the bank is well-positioned and does not require new capital at present. He said the bank’s overall capital adequacy ratio stands at around 17%, while its common equity tier-1 ratio is well above 15%, which he said would be sufficient for the next two years.
“We are very comfortable on capital. Even after the reorganisation and transformation work, we don’t have to worry about capital,” he said. Anand said he sees FY26-27 as the first year of renewed growth for the bank, with the second half of that period providing visibility on whether growth can accelerate further. He added, “There is no need for confidence capital. Investors can clearly see we don’t need capital. And considering that stock is trading below book value. Raising money now would be inappropriate. I’d rather raise capital when growth momentum returns.”
Anand highlighted three business segments that differentiate IndusInd from other new-generation banks. The first is the commercial vehicle segment, including construction equipment and passenger vehicles, where he said the bank has a market share of around 6–7%. He said the loan book in this segment recently crossed ₹1 lakh crore and is diversified, profitable and stable.
The second is the gems and jewellery financing business. He said the bank has long-standing relationships with the top 10–15 firms in the industry. While the sector has faced pressure due to tariff changes and a slowdown in the United States, Anand said the bank has continued understanding of the segment.
The third is microfinance, where IndusInd has historically held a significant presence. A new chief executive has joined Bharat Financial, the microfinance subsidiary, this month. Anand said the bank is working to strengthen operating and risk controls while using credit guarantee schemes to manage volatility, and expects around 7–8% of its assets to remain in microfinance.
On the retail segment, Anand said the bank has around 3,000 branches, though many do not currently distribute retail loans. He said the bank will use technology to enable branches to originate retail assets while keeping underwriting centralised using scorecards. Collection processes are also being reviewed. He said the bank will shift or add branches depending on gaps, while keeping the total branch count steady.
In an inerview to ToI, Anand said the bank is undertaking changes across governance, controls and culture as part of this effort. Responding to questions on governance and cultural shifts, he said the bank has brought in a new chief financial officer, a new internal audit head, a new general counsel and will add a new chief risk officer by the end of January. According to him, steps are also being taken to strengthen assurance functions and rework internal processes to reduce manual intervention or put in place stronger controls.
“The most important change is tone from the top—we want world-class governance, not just industry-standard governance,” he said, adding that the bank is rebuilding teams with “high-integrity professionals” from both within and outside the financial sector to reinforce culture across the organisation.
Regarding treasury and derivatives operations, Anand said that control gaps had been identified earlier, and a project team was formed to address them. He said most controls have now been put in place, with a few still being implemented. These fixes are being externally validated. He said the bank is also reviewing other parts of its operations to identify any further gaps.
On the question of raising capital, Anand said the bank is well-positioned and does not require new capital at present. He said the bank’s overall capital adequacy ratio stands at around 17%, while its common equity tier-1 ratio is well above 15%, which he said would be sufficient for the next two years.
“We are very comfortable on capital. Even after the reorganisation and transformation work, we don’t have to worry about capital,” he said. Anand said he sees FY26-27 as the first year of renewed growth for the bank, with the second half of that period providing visibility on whether growth can accelerate further. He added, “There is no need for confidence capital. Investors can clearly see we don’t need capital. And considering that stock is trading below book value. Raising money now would be inappropriate. I’d rather raise capital when growth momentum returns.”
Anand highlighted three business segments that differentiate IndusInd from other new-generation banks. The first is the commercial vehicle segment, including construction equipment and passenger vehicles, where he said the bank has a market share of around 6–7%. He said the loan book in this segment recently crossed ₹1 lakh crore and is diversified, profitable and stable.
The second is the gems and jewellery financing business. He said the bank has long-standing relationships with the top 10–15 firms in the industry. While the sector has faced pressure due to tariff changes and a slowdown in the United States, Anand said the bank has continued understanding of the segment.
The third is microfinance, where IndusInd has historically held a significant presence. A new chief executive has joined Bharat Financial, the microfinance subsidiary, this month. Anand said the bank is working to strengthen operating and risk controls while using credit guarantee schemes to manage volatility, and expects around 7–8% of its assets to remain in microfinance.
On the retail segment, Anand said the bank has around 3,000 branches, though many do not currently distribute retail loans. He said the bank will use technology to enable branches to originate retail assets while keeping underwriting centralised using scorecards. Collection processes are also being reviewed. He said the bank will shift or add branches depending on gaps, while keeping the total branch count steady.
