IndusInd Bank’s corporate loan book poses big strain

22 May 2025 , 01:04 PM

In the quarter ended March 2025, IndusInd Bank posted a net loss of ₹2,328 Crore, being the first net loss in over two decades. However, there is a bigger headache that the private lender may be strained to deal with; the corporate loan book.

The reason that a bank’s corporate loan is so important is because most corporate loan books have a large ticket size and they also aid banks in generating steady income streams through these transactions.

On the other hand, corporates transacting with a particular bank comes across as a sign of trust within the lender.

As corporates have made their way to alternative routes like equity and debt markets to meet their fund requirements, in place of the usual bank loans has led to a slowdown in bank’s corporate loan book growth.

However, as reported, IndusInd bank was the only bank to report a slowdown in its corporate loan book both on a sequential and year-on-year basis. 

In the quarter ended March 2025, the business posted a 15.70% Q-o-Q decline in its corporate loan book. This was at levels never seen before.

At around 12.59 PM, IndusInd Bank was trading almost flat at ₹770.90 per piece, against the previous close of ₹769.95 on NSE. The counter touched an intraday high and low of ₹796.70, and ₹725.80, respectively.

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