IndusInd Bank Limited stands as India's 5th largest private sector bank, serving over 40 million customers nationwide. Incorporated in 1994 as a commercial bank under the Banking Regulation Act, 1949, the bank was established by S.P. Hinduja along with hundreds of NRI and other shareholders, named after the Indus Valley Civilisation, and began operations on 17 April 1994.
The Bank is publicly held and provides a wide range of banking products and financial services to corporate and retail clients besides undertaking treasury operations. The bank operates through a comprehensive network, with approximately 42 million customers through 3063 branches/banking outlets and 2993 ATMs, reaching 1,60,000 lacs villages across India as of December 31, 2024.
IndusInd Bank has established itself as a significant player in the microfinance segment, being India's 2nd largest microfinance lender, operating through its subsidiary Bharat Financial Inclusion Limited (BFIL), serving over 13 million customers. The bank also maintains international presence with representative offices in London, Dubai, and Abu Dhabi.
IndusInd Bank has a market cap of ₹66,707 crore as of recent data, though it has experienced significant volatility. The bank's financial performance has been under scrutiny due to recent accounting irregularities.
For Q3 FY25 (ended December 31, 2024):
- Net Interest Income (NII) at ₹5,228 crores in Q3 FY25 from ₹5,296 crores in Q3 FY24
- NIM at 3.93% for Q3 FY25 as compared to 4.29% for Q3 FY24 and 4.08% for Q2 FY25
- Net Profit at ₹1,402 crores for Q3 FY25 as compared to ₹1,331 crores in Q2 FY25
- Deposits grew by 11% YoY to ₹4,09,438 crores from ₹3,68,793 crores
For FY24 (ended March 31, 2024):
- Net Profit at ₹8,977 crores for the year ended March 31, 2024 up by 21% over the previous year at ₹7,443 crores
- Balance sheet footage crosses 5 trillion mark at ₹5,15,094 crores
Recent financial health indicators include:
- NIM at 3.93%, Net NPA at 0.68%, Provision Coverage Ratio at 70%, Capital Adequacy Ratio (CRAR) at 16.46% CASA at 35% and Liquidity Coverage Ratio at 118%
- Gross NPA at 3.13% of gross advances as on March 31, 2025 as against 2.25% as on December 31, 2024. Net Non-Performing Assets at 0.95% of net advances as on March 31, 2025
The Bank's product offerings include microfinance, personal loans, debit/credit cards, SME loans, advanced digital banking facilities, affluent and NRI banking services, vehicle financing, and innovative ESG-linked financial products. The bank operates across multiple segments including corporate banking, retail banking, and treasury operations.
IndusInd Bank has positioned itself as a technology-forward institution. The bank leverages technology through its 'Digital 2.0' strategy, ensuring multi-channel delivery and a robust digital infrastructure. A key innovation is INDIE, introduced as a hyper-personalized financial super-app that offers a completely differentiated experience to customers who are digitally savvy.
INDIE offers personalized experience and ultra flexible products that users can personalize as per their unique needs. Customers can get instant access to funds through a flexible line of credit, returns of upto 7.85% on fixed deposits with the flexibility of paying through FD when balance runs low.
The bank has faced significant challenges with accounting irregularities related to its foreign exchange derivative transactions following a September 2023 RBI directive for mark-to-market valuation. An internal review revealed discrepancies in the valuation of certain legacy derivative contracts. Initial estimates placed the potential financial impact at ₹1,572 crore, later revised to ₹2,361 crore by May 2024.
IndusInd Bank's Managing Director and CEO, Sumant Kathpalia, resigned in April 2025, taking moral responsibility for accounting irregularities in the bank's derivatives portfolio.
The bank continues to focus on digital transformation and customer-centric services. IndusInd Bank launched 'INDIE for Business' digital platform targeting 60M+ MSMEs, aiming to double MSME revenue. The bank is also involved in innovative financial solutions, including piloting the Reserve Bank of India's programmable Central Bank Digital Currency (CBDC) in collaboration with Circularity Innovation Hub.
IndusInd Bank's shares have been a part of the NIFTY 50 index since 1 April 2013, reflecting its significance in the Indian banking sector. The bank also enjoys clearing bank status for both major stock exchanges BSE and NSE and settlement bank status for NCDEX, and is an empaneled banker for MCX.
Despite recent challenges, IndusInd Bank continues to maintain its position as a significant player in India's private banking sector, with a focus on digital innovation and comprehensive financial services across diverse customer segments.
