IndusInd Bank’s Corporate Loan Book Raises Concerns for the Lender’s Financials

IndusInd Bank posted a net loss of ₹2,328 crore in the March quarter on May 21, the first quarterly net loss in over two decades. However, the Mumbai-based private lender is grappling with its poor corporate loan book.

The large ticket size of corporate loans enables banks to generate substantial revenue through these transactions.

As companies are looking forward to alternative routes like equity and debt markets to raise funds, instead of the usual bank loans, lenders across the board have seen a slowdown in their corporate loan book growth.

Surprisingly, IndusInd Bank reported a decline in its corporate loan book on a year-on-year as well as quarter-on-quarter basis. Otherwise, the corporate loan book at State Bank of India grew 5.5% in Q4FY25.

IndusInd Bank posted a decline of 15.7% on a QoQ basis.

IndusInd Bank opened with a 5% gap down today before rebounding to gain 3% from the day’s lows