IndusInd Bank Charts FY29 Growth Roadmap
Private sector lender IndusInd Bank has outlined a three-year strategy covering FY27 to FY29, aimed at restoring growth, strengthening its core businesses and ultimately outperforming the banking industry by FY29. The roadmap follows a period in which the bank prioritised balance-sheet strength, governance, risk management and asset quality over near-term business expansion.
Under the plan, FY27 will focus on returning the bank to industry-aligned growth and stability, with an exit Return on Assets (RoA) target of 1%. In FY28, the bank plans to scale up operations and accelerate growth, while FY29 is intended to mark the phase in which IndusInd Bank seeks to outperform the industry and establish leadership positions in selected business segments.
Managing Director and CEO Rajiv Anand, who took charge in August 2025, indicated that the bank is moving from an institutional rebuilding phase towards sustainable growth. During the previous year, IndusInd Bank tightened underwriting standards, reviewed its business and operating model and adopted a more risk-adjusted approach to capital deployment.
The strategy will be driven by the bank’s P.A.C.E. framework — Protect the Endowments, Accelerate Key Priorities, Customer Centricity and Execution Excellence. Under this framework, IndusInd Bank intends to strengthen established franchises in vehicle finance, rural banking and corporate banking, while expanding granular deposits and growing its retail and SME lending businesses.
The bank also expects micro-loan activity to return to calibrated growth during FY27, following the contraction and portfolio clean-up undertaken earlier. Management believes that stabilising asset quality, improving the funding profile, growing retail deposits and maintaining a sound capital position should support progressively stronger returns over the medium term.
Technology is another pillar of the strategy. IndusInd Bank plans to increase the use of artificial intelligence, data architecture and digital capabilities to enhance customer experience and improve operating efficiency. At the same time, the bank has emphasised that AI deployment will remain subject to human oversight, data privacy, model governance, cybersecurity and regulatory compliance requirements.
Governance and risk controls will continue to remain central to the transformation. The bank has refreshed parts of its leadership structure, strengthened oversight and reinforced its risk and compliance practices. Management believes these measures, together with increased emphasis on capital, liquidity, asset quality and customer trust, will provide the foundation for sustainable growth over the three-year period.
The roadmap therefore represents a shift from FY26’s consolidation and rebuilding phase to a staged growth strategy: stabilisation in FY27, acceleration in FY28 and targeted industry outperformance in FY29.
