Target 1% ROA by Q4 FY27
Bank expects to reach 1% ROA through 60% contribution from PPOP improvement and 40% from lower credit costs. This will be driven by balance sheet growth, operating leverage, and continued asset quality improvement.
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IndusInd Bank · forward-looking guidance across the available source record.
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Wholesale Banking Growth to Moderate
Corporate/wholesale growth is not expected to sustain 7%+ QoQ indefinitely; bank will selectively pick transactions with reciprocal business (transaction banking, current accounts) while optimizing risk-return profile.
Microfinance Disbursements to Accelerate from Q2
Q1 was seasonally weak with flat disbursements at Rs 5,200 crore; expect meaningful acceleration from Q2 onwards as business pivots from repair to growth phase.
NIM Pressure in Near Term, Recovery Expected
NIM declined 4bps to 3.35% this quarter due to mix shift toward wholesale; expects NIM to come back as high-yielding retail/businesses start growing, though NIM is a smaller contributor to the 1% ROA journey.
Industry-average loan growth by FY27
Management targets loan growth in line with the banking system (approx. 12-13%) by fiscal year 2026-27.
1% RoA by end-FY27
Target return on assets of 1% by the back end of fiscal year 2026-27, driven by credit cost normalization and margin improvement.
Vehicle finance market share target of 9%
Aims to increase vehicle finance market share from ~7.5% to 9% over the medium term.
Microfinance book to grow from Q4 FY26
Disbursements in Q3 exceeded repayments; book expected to start growing from Q4 onwards, with CGFMU coverage targeted at 100%.