The bank expects to grow broadly in line with the market in FY27 and anticipates 16-17% credit growth with a 1% return on assets (RoA). “Therefore, broadly speaking, we should be in that vicinity with 1% ROA,” Anand said.
Anand said the bank’s $3.5 billion FCNR deposits raised through the RBI’s swap window are currently being used to repay certificates of deposit and other high-cost deposits, with the funds expected to be deployed towards lending over the next two quarters. He added that underlying credit demand continues to be strong.
On corporate lending, Anand said growth in corporate credit is returning after a prolonged period of muted expansion. While corporate loans may be somewhat NIM-dilutive, the business remains attractive from an RoA perspective because of additional fee, current account and foreign exchange opportunities.
“The growth is getting broad-based,” Anand said, adding that retail disbursements had already risen 16% quarter-on-quarter in the first quarter, although this had not yet translated into growth in the loan book.
On margins, Anand expects some near-term pressure from the FCNR deposits and said there could be a “little bit of a blip downwards” in the second quarter. However, he expects the bank to recoup this in the second half of the year. “I think there is upside to NIMs. Let’s wait and watch,” he said.
The bank does not expect a significant change in its loan mix this year, with corporate loans accounting for about 35% and retail 65%. Anand said traditional retail segments such as personal, home, gold and business loans should begin to grow faster in the second half of the year.
On profitability, Anand reiterated that the bank is targeting 1% RoA on an exit basis.On capital, he said IndusInd Bank’s CET1 ratio is comfortable at around 16.5%, and the lender is not under pressure to raise funds immediately. However, as growth returns and provisions are required under expected credit loss (ECL) norms, the bank could look at raising capital.
“We’re not in a situation where we are desperate for capital,” Anand said. “At some opportune time between in the next 6 to 12 months, as growth comes back for IndusInd Bank, we will look at a capital raise.”
Shares of IndusInd Bank were trading 1.6% down at ₹977.70 as of 12.57 pm on Friday. The stock has gained nearly 10% so far in 2026 and about 31% in the last one year.
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