In his first annual report message to shareholders since taking charge in August 2025, Rajiv Anand, MD & CEO, said the bank was entering its "next chapter with stronger foundations, clearer priorities, a leadership team aligned on execution, and a sound capital and liquidity position", signalling that the lender was now shifting its focus from institutional rebuilding to sustainable growth.
The roadmap comes after a year in which the lender deliberately prioritised strengthening its balance sheet, governance and risk management over chasing business growth. As part of the first phase of the roadmap, the bank has set itself the objective of restoring the franchise to industry-aligned growth while achieving an exit return on assets (RoA) of 1 per cent in FY27.
"The first year is centred on strengthening the bank's foundations, restoring the franchise to industry-aligned growth and achieving an exit return on assets (RoA) of 1 per cent in FY27. The second year will focus on scaling the business and accelerating growth momentum, while the third year is intended to deliver outperformance by building leadership positions across selected business segments," Anand said.
The bank also expects to return to calibrated growth in businesses that witnessed a slowdown during the clean-up phase. Anand said the lender had optimised its balance sheet by shedding inefficient assets, improving underwriting standards and adopting a risk-adjusted approach to capital allocation.
"With asset quality stabilising, FY27 will be a year of calibrated growth rather than a contraction in micro loans," he said. Anand added that trends in asset quality, retail deposits, operating leverage, funding profile and capital position gave the bank confidence of "progressively improving returns over the medium term".
The next phase of growth will be guided by what the bank has termed the P.A.C.E. framework — Protect the Endowments, Accelerate Key Priorities, Customer Centricity and Execution Excellence. Under the strategy, IndusInd Bank plans to strengthen its core vehicle finance, rural banking and corporate banking franchises, scale granular deposits and expand retail and SME lending while leveraging digital capabilities and artificial intelligence (AI) to improve customer experience and operational efficiency.
Anand said the bank's investments in artificial intelligence, data architecture and digital capabilities would complement — not replace — the fundamentals of banking.
"As these capabilities expand, responsible use is non-negotiable. Human oversight, data privacy, model governance, security, and regulatory compliance will remain integral to how we design and deploy AI. Technology must strengthen, not weaken, the relationships and trust at the heart of banking," he said.
"FY26 tested the bank's resilience, clarified its priorities, and created an opportunity to strengthen the institution for the long term," Anand said.
"We consciously prioritised balance sheet strength, asset quality, and long-term sustainability over near-term growth. We undertook a comprehensive review of our business and operating model. This included tightening underwriting standards, improving the quality and resilience of our portfolio mix, reinforcing risk management practices, and embedding greater operating rigour across the organisation. These choices moderated growth and impacted profitability in the near term, but they have enhanced the quality and durability of the franchise," he added.
According to Anand, the rebuilding exercise has focused as much on governance as on business fundamentals. "We have strengthened governance and oversight, refreshed leadership across the organisation, reinforced risk and compliance practices, and placed greater emphasis on asset quality, capital, liquidity, and customer trust. Together, these measures provide a stronger platform for sustainable performance and long-term value creation," he said.
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