IndusInd Bank Navigates Challenges Amid Leadership Changes and Asset Realignment

IndusInd Bank reported a 90% drop in its December quarter net profit due to higher stress in its microfinance book and loan de-growth. The bank is undergoing a 'right-sizing' of its balance sheet and plans to align growth with the system by FY27. Key personnel changes have been announced.

IndusInd Bank, a private sector lender, announced a significant 90% decline in its December quarter net profit to Rs 127.98 crore. The fall is attributed to heightened stress within its microfinance portfolio and a reduction in its loan book.

This decline comes amidst a period of restructuring for the Hinduja group-promoted bank, which has faced leadership changes following fraud discoveries. Efforts are underway to 'right-size' the balance sheet by eliminating costly liabilities.

Despite these challenges, the bank aims to align its growth trajectory with the system by FY27, while new management appointments seek to stabilize and propel future development.

(With inputs from agencies.)