• Quarter performance: Management described the quarter as an all-round performance, citing stronger vehicle-finance disbursements, microfinance growth of 8% Q-on-Q—the first growth in 8 quarters—and $3.51 billion raised through FCNR(B). It also credited broad-based fee income and treasury performance in a volatile environment.
• Growth guidance: IndusInd Bank’s priority this year is rebuilding and growing broadly in line with the industry on both assets and liabilities. Management said first-half growth was reasonably strong and reiterated an exit ROA of about 1%.
• Margins and costs: The cost-to-income ratio fell about 800 basis points year-on-year from about 66%. Management expects only a little NIM movement in Q3, with a larger portion of the recovery playing out from Q4 onwards as high-yielding disbursements grow and FCNR(B) funds are deployed.
• Credit and rural risks: The bank is not seeing concerning early delinquencies in vehicle finance or stress in its microfinance book, but will watch rural areas affected by drought and higher fuel prices. Management sees further room for credit costs to fall as the book grows and accelerated provisions come off.
• Deposits and fees: CASA was 28%, and new account openings rose 20% Q-on-Q; management said growing retail deposits, about 50% of the portfolio, and current accounts remains a priority. If insurance norms remain as proposed, the impact on bancassurance fees could be material, though the bank has other levers and is waiting for final guidelines.