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IndusInd Bank targets 1% RoA by FY27 after turnaround push
The bank said annualized return on assets was 0.78% at June-end, as it works to improve business momentum and lower credit costs following a governance crisis.
IndusInd Bank is targeting a return on assets of 1% by the end of fiscal year 2027, according to a Mint Premium analysis, as the lender tries to turn a repaired balance sheet into sustainable profitability after earlier governance and microfinance setbacks.
The article says annualized RoA stood at 0.78% at June-end, or 0.63% after adjusting for interest on tax refunds. It also notes the bank will ultimately need to lift return on equity above its cost of equity to support any re-rating.
Mint reports that the bank’s near-term priorities include improving business momentum, lowering credit costs and continuing operating leverage, following pressures from margin and asset quality.
The turnaround comes after a sharp reversal in fortunes: the article recalls that a March 2025 disclosure about discrepancies in the bank’s derivatives portfolio led the stock to fall 27% in a day to ₹655.95 on the National Stock Exchange, and that it was followed by regulatory investigations, forensic reviews, senior-management exits and insider trading allegations.