IndusInd Bank has reported a significant fall in its loan book during the fourth quarter of the financial year 2024-25. The bank’s net advances declined by 5.2% on a quarter-on-quarter basis to Rs. 3.48 lakh crore as of March 31, 2025. Despite this decline, the bank saw a 1.4% year-on-year growth in net advances.
Corporate Lending Faces a Setback
The decline in the loan book was primarily driven by a decrease in corporate lending, which saw a 4.9% year-on-year reduction and a significant 15.1% fall compared to the previous quarter.
Consumer Banking Offers a Silver Lining
Contrary to the corporate segment, the consumer banking sector showed resilience with a 6.3% year-on-year increase in net advances and a 3.4% rise from the last quarter. The growth was driven by robust demand for retail credit products, including personal and home loans, reflecting strong consumer confidence.
Deposits Witness Modest Growth
IndusInd Bank’s deposit base grew by 6.8% on a year-on-year basis, reaching Rs. 4.11 lakh crore. However, the sequential growth was limited to just 0.4%. The bank reported a slight dip in retail deposits and small business contributions, declining from Rs. 1.89 lakh crore in December 2024 to Rs. 1.85 lakh crore in March 2025.
Strategic Adjustments and Future Outlook
Against the backdrop of loan book decline, IndusInd Bank is placing greater emphasis on retail and consumer banking and cautiously growing corporate lending. Offloading corporate loans is considered by the bank to be a positive risk management initiative. Experts opine that with continued focus on retail growth, the bank could arrest the loan book decline in the coming quarters.
Even though the fall in corporate lending would be a challenging situation, the growth in IndusInd Bank’s consumer banking and stable deposits provide a hedge against possible financial stress. Analysts will follow the bank’s performance over the next few months to assess its strategic realignment effectiveness.
Also Read: Ashok Hinduja Addresses IndusInd Bank’s Stability and Transparency Concerns
