IndusInd Bank to keep selective exposure to large corporate loans, says management

The search for the new CEO started after bank’s CEO Managing Director Sumant Kathpalia resigned on April 29, a day after the bank's deputy CEO Arun Khurana resigned.

Private lender IndusInd Bank will keep a selective exposure to the large corporate loans going forward and will scale up granular and small corporates exposure, said bank’s management during the earning conference call on May 21.

Currently, the bank has Rs 76,702 crore exposure to the large corporate accounts, which is 22 percent of the total loan book of Rs 3.45 lakh crore as on March 31.

Mid and small corporate loans account for 15 percent and 5 percent of the total loan book. The overall corporate loan book of the bank is 42 percent of the total loan book, according to the investor presentation of the bank.

In the reporting quarter, the bank has let go some corporate accounts for balance sheet management and liquidity management. This has led to fall in corporate loan growth, lender said.

The corporate loan book of the reduced 16 percent on a quarterly basis, and 6 percent on a yearly basis. It stood at Rs 1.70 lakh crore in a quarter ago period and Rs 1.52 lakh crore in a year ago period.
“This was only a tactical decision keeping in mind the short-term objectives of the bank,” management of the bank said during the call.

The added that bank is closely monitoring the developments and comfortable with the exposures as of now.

The bank has reported Rs 220 crore of fresh corporate slippages in the reporting quarter, which was lower than Rs 280 crore in a quarter ago period.

The gross slippages of the corporate book was mainly contributed by one restructured real estate amount accounting to Rs 140 crores. The full gross slippages for corporate book improved from 0.44 percent, as compared to 0.54 percent in a year ago period.