'Have Control Over Business Not Market Movements,' Rajiv Anand of Indusind Bank Reacts To Stock Fall

🎥 Jul 23, 2026 📺 NDTV Profit ⏱ 9m

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About Rajiv Anand

Rajiv Anand, Managing Director and CEO of IndusInd Bank, described the first quarter of fiscal year 2027 as a "clear inflection point" for the bank, stating that it has "substantially completed the balance sheet and earnings calibration" undertaken over the past year. In media appearances following the bank's Q1 results, Anand said the bank is now focused on accelerating sustainable growth, noting that he expects the bank to "start to grow in line with market" this year and that the exit position at the end of 2027 will position the bank to "dominate in our focus areas from 28 onwards." He attributed Q1 growth to the corporate side, stating that while corporate loan growth may be net interest margin-dilutive, it is positive from an operating expense and credit cost perspective. Anand also said the bank's board passed an enabling resolution to raise both debt and equity, but emphasized that the bank's capital position remains strong with a total capital adequacy ratio in excess of 17% and a Common Equity Tier 1 ratio above 16%, and that there are no immediate plans to raise capital. When asked about a decline in the bank's stock price following the earnings announcement, Anand stated, "That's not a question for me to answer. What I have control on is how I manage my business. I leave it to the markets on how they want to react on a day-to-day basis." He also addressed expectations for net interest margins, saying he wanted to "put to rest that the FCNR(B) money is not that cheap" and acknowledged there could be some margin pressure in the second quarter due to incoming liquidity, but expressed confidence that the bank has "enough engines of high yielding growth" to protect margins over the remaining three quarters.

Source: AI-verified profile updated from Rajiv Anand's recent appearances. Browse all interviews →

Transcript (15 segments)

Nisha0:00

Let's focus on the earnings and coming in from the banking space. IndusInd Bank is in focus as the company announces its quarterly numbers with asset quality improvement seen in the quarter. In fact we are joined by Rajiv Anand, the MD and CEO of IndusInd Bank. Uh Rajie, always a pleasure to welcome you on NDTV Profit. Uh now my first question to you Rajie: what is it that the street does not seem to like? The stock has been punished in trade over 4% down.

Rajiv Anand0:30

Uh that's not a question for me to answer. What I have control on is how I manage my business. I leave it to the markets on how they want to react on a day-to-day basis.

Nisha0:45

Right. So even if the brokerage reports have really given an upgrade because you are at the cusp of a reversal and a turnaround with wholesale book also showing promising results. What is the trajectory and the guidance you want to give for the rest of this financial year, Rajie, for the stakeholders to have much more comfort in the valuations of the stock?

Rajiv Anand1:09

So Nisha, what we've been saying is that this is the year and in a sense this is the quarter of the inflection point for us. A lot of the repair work that we undertook last year is behind us and now we are really focused on growth. FY27 is all about getting back to market level growth and being able to deliver 1% ROA on an exit basis in the current year. And that's what we are really focused on.

Year-on-year comparisons, there's a lot of noise in the denominator currently, and so therefore if you look at it on a quarter-on-quarter basis, we've seen growth both on the assets and liabilities side. There's a lot of work that's already beginning to happen on some of the other engines of growth. The traditional retail assets, for example, disbursements are up 16% on a Q basis, which means that while the book is flat for the current quarter, we will see the book begin to grow, which is really credit cards, personal loans, business loans, home loans, gold loans, etc. I think that whole engine is now being refurbished and is ready for growth on the microfinance business.

Traditionally Q1 is a relatively weak quarter, but despite that we've been able to grow disbursements broadly in line with Q4, which means that we should see pretty strong growth on the microfinance business in its traditionally strong Q2, Q3, Q4. On the vehicle finance business, it's been a relatively weak quarter, somewhat by the fact that we have slowed significantly growth on the two-wheeler business because of some credit issues that we are dealing with. But otherwise, the rest of the portfolio is beginning to grow, and I do believe that there is enough momentum there for us to grow for the rest of the quarter. So we should see broad-based growth and broadly in line with market during the current year.

Nisha3:28

Right. So Rajie, a lot of momentum or at least expectation is building around IndusInd Bank after this particular quarterly result on the improvement trajectory beginning now. In your view and your in-house estimates and targets, when do you think that some meaningful results of this will come out? What's the timeline that we are really looking at for long-term shareholders in the company?

Rajiv Anand3:56

Like I said, Nisha, this is the year when we will start to grow in line with market. We've begun to see that momentum in Q1. You've also seen, even after taking off the one-off, that ROA has improved on a quarter-on-quarter basis. So clearly you can see that the momentum is beginning to build within the franchise. There are enough engines for us to grow. From an asset perspective, there's a lot of fee income that we are currently either under-delivering or not delivering at all, and I think some of those, there is work that is happening around that as well, and there is continued cost optimization that we are working on. So really it's across the entire ROA tree that work is happening, and superimpose market level growth. I do believe that the exit position that IndusInd Bank will have at the end of 2027 will then position us to be able to dominate in our focus areas from 2028 onwards.

Nisha5:10

Right. So Rajiv, of course ROA target of 1% for this fiscal is something to watch out for, and also a lot of retailization of your book is what I hear in your commentary. But your NIMs are down by four bips, and also you have given an outlook that you'll see pressure in Q2. Can you elaborate and what will push up the NIMs? Because I think that is something that the market is most sensitive about from the banking space now.

Rajiv Anand5:38

So I think let me break this into two parts. The short term, we have said that we will get about 3.6% of the total inflows on the FNRB side. And so therefore to that extent, it does take a little bit of time before we deploy this large pool of savings that will come in. And so therefore to that extent, we do believe that there potentially could be a little bit of margin pressure in Q2. But we do believe that there is some upside to margins from there on as the higher yielding businesses, which is our vehicle finance business, microfinance, and the core retail businesses, begin to show growth. We do believe that Q3 onwards we should expect NIMs to improve.

Nisha6:34

Right.

Rajiv Anand6:34

But I do believe that, and if I can just add, I think the focus that we have really is on ROA, meaning that we are optimizing for ROA. So there may be some businesses which are relatively lower NIM businesses, but if they're coming to us at lower opex and lower credit costs such that it does not dilute ROA, we are quite happy to build those businesses as well.

Nisha7:04

All right. Your microfinance area book is also improving. So by Q3 there will be margin improvement that is being seen that you have guided. But funding is a raw material for any bank and financial institution, Rajie, and many of the midcap financial services as well as banks have really attracted a lot of deep-pocketed strategic players and financial investors. What we do gather from our market grapevine is also that IndusInd Bank has been in touch with several types of investors and explored that particular bit. Can you throw more light on the funding, foreign funding attracting that, and also recapitalizing the bank in the same way as many of your peers have done?

Rajiv Anand7:58

We have taken an enabling resolution in this board meeting to raise both debt and equity. But that's really just an enabling resolution. Our capital position continues to be very strong at an overall basis in excess of 17% and CET1 in excess of 16%. So at this point in time, we don't see any requirement for capital. At some appropriate time over the next, let's say, 12 months, as ECL begins to kick in and growth begins to kick in, we may contemplate a fund raise. But at this point in time, we have no plans to raise money.

Nisha8:53

Rajiv Anand, always a pleasure to chat with you. Thank you so much for joining in here.