25-Oct-2026 19:35:28
INDUSIND BANK Q2 CONCALL : TARGETS 1% EXIT ROA IN FY27, MEDIUM-TERM ROA OF 1.75–1.80% & NIM RECOVERY OVER NEXT TWO QUARTERS
• MANAGEMENT TARGETS 1% EXIT ROA BY MARCH 2027 VS 0.87% IN Q2 • MEDIUM-TERM ROA AMBITION MAINTAINED AT 1.75–1.80%, WITH NO SPECIFIC FY28 TARGET • MANAGEMENT EXPECTS NIM TO RECOVER OVER Q3–Q4 FY27 VS 3.23% IN Q2 • LOAN GROWTH EXPECTED TO MATCH BANKING SYSTEM GROWTH, WITH STRONGER RETAIL LENDING MOMENTUM IN H2 • MICROFINANCE PORTFOLIO RETURNS TO GROWTH AFTER EIGHT QUARTERS, UP 8% QOQ TO ₹17,571 CR • MICROFINANCE DISBURSEMENTS UP 25% QOQ TO ₹6,548 CR, WITH MANAGEMENT PLANNING CALIBRATED EXPANSION • VEHICLE FINANCE PORTFOLIO CROSSES ₹1 LAKH CR, WITH FESTIVE DEMAND EXPECTED TO SUPPORT H2 GROWTH • CREDIT CARD & PERSONAL LOAN PORTFOLIOS EXPECTED TO RETURN TO GROWTH OVER NEXT FEW QUARTERS • WHOLESALE BANKING LOANS UP 10% QOQ, WITH COMMERCIAL & MID-MARKET LENDING UP 13% • GROSS NPA IMPROVED TO 2.73% FROM 3.25% QOQ, WHILE NET NPA DECLINED TO 0.83% • FCNR-B DEPOSITS OF $3.51 BILLION EXPECTED TO SUPPORT FUNDING OPTIMIZATION, DESPITE TEMPORARY NIM PRESSURE • MANAGEMENT PLANS APPROXIMATELY 100 NEW BANK BRANCHES IN H2 FY27 TO STRENGTHEN DEPOSITS & LOAN ORIGINATION • ECL TRANSITION EXPECTED TO HAVE ONE-TIME PRETAX IMPACT OF APPROXIMATELY 1.1% OF LOANS, WITH ADDITIONAL RECURRING CREDIT COST OF 5–6 BPS • MANAGEMENT EXPECTS AI & DIGITAL AUTOMATION TO IMPROVE PRODUCTIVITY, WITH 12 ADDITIONAL CUSTOMER & EMPLOYEE JOURNEYS PLANNED • HIGHER DEPOSIT COSTS, DROUGHT-RELATED MICROFINANCE STRESS, INSURANCE COMMISSION CHANGES & ECL CAPITAL IMPACT REMAIN KEY RISKS
INDUSIND BANK LIMITED