According to reports from The Economic Times, PTI, and Rediff Moneynews, IndusInd Bank MD and CEO Rajiv Anand stated that the difficult phase for the microfinance business is now behind the bank. The bank had faced a severe governance and accounting crisis in 2025 centred around its microfinance subsidiary, Bharat Financial Inclusion Ltd (BFIL). The bank reversed ₹674 crore of cumulative interest income recognised incorrectly across FY25, while a further ₹172 crore was disclosed as fraud where employees falsely reported the sum as fee income in the microfinance business. As reported by PTI and Rediff Moneynews, Anand emphasized that "we have had a fairly difficult time on our microfinance business. But it is all now behind us. Risk is playing out quite well at this point in time and Q2 onwards we should see growth come back in our microfinance businesses."
As reported by The Economic Times, PTI, and Rediff Moneynews, Anand expressed confidence that growth in the microfinance segment will return from the second quarter onwards. The microfinance arm operates a successful business called Bharat Superstore, which lends to kirana stores, small restaurants and other businesses. The bank has successfully scaled up its disbursements and expects the microfinance business to grow 15-20% in FY27. Anand noted that the entire microfinance and rural banking business should show strong growth as they move into the second quarter and beyond, stating "that business is also doing well and continues to perform strongly. So, the entire microfinance and rural banking business that we have should show strong growth as we move into the second quarter and beyond."
According to The Economic Times, PTI, and Rediff Moneynews, Anand indicated that overall asset growth will be broadly in line with the market for the current financial year. With the market currently around 17-18%, the bank believes it will be in that vicinity. The bank's net worth is more than adequate to absorb the impact of regulatory changes, including the new Expected Credit Loss (ECL) guidelines coming into force from April 1, 2027.
As reported by The Economic Times, PTI, and Rediff Moneynews, regarding the impact of Expected Credit Loss (ECL) guidelines, Anand estimated the bank would require around 1-1.5% of assets. The net worth is more than adequate to absorb this impact, with the guidelines having an impact of about 1% on Common Equity Tier 1 (CET1), which was 16.1% at the end of June 2026. Anand stated that "our net worth is more than adequate to absorb the impact" and emphasized the bank's confidence in managing the regulatory changes.
According to The Economic Times, PTI, and Rediff Moneynews, for the first quarter ended June 30, IndusInd Bank posted a 72% jump in consolidated profit after tax to ₹1,037.05 crore against a profit of ₹604.07 crore in the year-ago period. This strong quarterly performance demonstrates the bank's recovery momentum following the microfinance crisis resolution and supports management's confidence in the business outlook.
