IndusInd Bank expects credit growth to become more broad-based in FY27, targeting 16-17% growth and a 1% return on assets, its CEO said.

Managing Director and CEO Rajiv Anand shared this outlook at the Global Fintech Festival 2026, pointing to strong underlying demand across the bank’s loan book.

Anand said the bank plans to grow roughly in line with the broader market this year. He also spoke about how the $3.5 billion in FCNR deposits raised through the RBI’s swap window are currently being used.

Right now, that money is going toward repaying costlier deposits and certificates of deposit. Over the next two quarters, the bank plans to redirect these funds toward fresh lending.

Corporate lending is also showing signs of a turnaround after a long stretch of slow growth.

Anand noted that while corporate loans tend to weigh on net interest margins, this segment still makes sense for the bank because of the additional fee income, current account balances and foreign exchange business that come along with it.

On the retail side, disbursements rose 16% quarter on quarter in the first quarter, though this hasn’t yet shown up as growth in the overall loan book.

Anand expects that to change, with retail segments like personal, home, gold and business loans picking up pace in the second half of the year.

The bank’s loan mix is expected to stay largely steady, with corporate loans making up about 35% and retail the remaining 65%.

On margins, Anand flagged some near-term pressure tied to the FCNR deposits, saying there could be a slight dip in the second quarter before recovery sets in during the second half.

This update follows a strong first quarter for the bank, where consolidated net profit jumped 72% year on year to ₹1,037 crore, supported by an improved net interest margin of 3.57% and a gross NPA ratio that eased to 3.25%.

On capital, Anand said the bank’s CET1 ratio stands comfortably at around 16.5%, with a possible capital raise being considered sometime in the next six to 12 months as growth picks up.

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