Expect to grow at 25% CAGR: IndusInd Bank

IndusInd Bank expects to grow its balance sheet at 25% CAGR. It has no plan to launch its own home loan product in the next three years. However, it has been selling HDFC home loan products to generate substantial fee income. It has recently acquired Deutsche Bank’s credit card portfolio. The small business is running well. In the next one year, it would make a profit before tax of Rs 50 crore.

IndusInd Bank is a classic case of management change scripting a turnaround in fortunes. It was December 31, 2008 when the bank’s market capitalization stood at Rs 1,337 crore (Sensex at 9,647 points) and Romesh Sobti, the MD & CEO of the bank, had assumed charge at the helm. This was followed by a series of management level recruits in the next two months.

Today the bank’s market cap stands at around Rs 11,400 crore, an eight-fold jump since 2008 and the broader index is trading above 15,000 points. Unlike the past, the private sector lender now commands respect among market participants.

For full interview of Mr Romesh Sobti, MD of IndusInd Bank with Mr Saikat Das of Moneycontrol, Click here