IndusInd Bank Targets Retail, MSME, and Rural Growth in FY26

New Delhi, Aug 11 (KNN) IndusInd Bank is planning to strengthen its retail lending, expand MSME assets, and grow its rural banking presence in FY26 as part of its post-restructuring strategy.

The bank aims to focus on secured retail loans, home loans, affluent banking, merchant-acquiring, and micro-market distribution while integrating operations under its “One Bank” approach for greater efficiency.

Chairman Sunil Mehta described FY25 as a period of introspection for the bank following major accounting irregularities.

In the March quarter, IndusInd reported a consolidated net loss of Rs 2,329 crore, driven by a Rs 1,979 crore derivatives accounting lapse, Rs 674 crore wrongly recorded as microfinance interest, and Rs 595 crore in unsubstantiated “other assets” balances.

To address these setbacks, the bank has introduced stronger governance measures focused on ethics, transparency, and accountability.

The management has committed to long-term sustainable growth built on robust internal controls and prudent risk management.

Despite the recent financial impact, the bank’s fundamentals remain stable, with strong capital adequacy, high provision coverage, and sufficient liquidity.

This foundation is expected to support its renewed growth push in the coming fiscal year.

The bank will also scale up its rural operations under the Bharat Banking initiative, targeting deeper market penetration in underserved areas.

Corporate lending will remain selective, ensuring alignment with the bank’s revised focus on stability, trust, and sustainable expansion.

By rebalancing its portfolio towards retail and MSME lending, IndusInd Bank aims to position itself for steady growth while regaining investor and customer confidence in the aftermath of a challenging year.

(KNN Bureau)