IndusInd Bank is one of the leading private sector banks in India. It offers a wide range of banking products and financial services to retail, corporate and institutional customers. IndusInd Bank has its headquarters in Mumbai and operates over 2000 branches across the country. The bank has witnessed remarkable growth since its inception in 1994 and has established itself as a technology-driven bank backed by excellent service delivery.
History of IndusInd Bank – Origins & Establishment
IndusInd Bank was incorporated in 1994 by a group of Non-Resident Indians from the Hinduja Group. The bank commenced operations in 1995 with an aim to serve the financial needs of Indian citizens from all walks of life. The origins of IndusInd Bank can be traced back to 1929 when it started off as a vehicle financing company called IndusInd Enterprises Limited.
In the 1990s, the Reserve Bank of India permitted private players to establish commercial banks. This led the Hinduja Group to seek a banking license and establish IndusInd Bank in 1994. The bank received its banking license from RBI in 1995 and opened its first branch in Pune. Within a year, the bank expanded to 8 more branches across Gujarat, Maharashtra and Tamil Nadu.
Right from the beginning, IndusInd positioned itself as a tech-savvy bank offering innovative products and superior services. In 2000, the bank became the first Indian bank to launch an independent credit card business. Over the years, it has maintained its technology-driven approach and customer-centric focus.
Overview of key Milestones and Achievements
Some of the key milestones and achievements of IndusInd Bank over the years:
- In 2002, IndusInd expanded nationally and established its presence across 530 centers in India.
- In 2004, the bank became the first Indian bank to implement core banking solutions to integrate its branches.
- In 2007, IndusInd merged with Ashok Leyland Finance and this helped expand its vehicle finance business.
- In 2010, Hinduja Group increased its stake in the bank to over 25% making it the largest shareholder.
- In 2015, IndusInd Bank inaugurated its 1000th branch, reflecting its rapid growth over two decades.
- In 2021, the bank reported total business of over ₹3.1 lakh crore. Its customer base increased to over 26 million.
- IndusInd Bank has received multiple awards over the years – ‘Best Bank Award‘ by Business Today, ‘Best Small Bank‘ by Businessworld, ‘Best Digital Bank of the Year‘ at IBA Banking Awards etc.
- It has consistently maintained healthy capital adequacy ratio and low NPA levels demonstrating its operational efficiency.
Retail Banking Products & Services
IndusInd Bank offers a variety of retail banking products and services to meet the needs of individual customers. Here is an overview of their key offerings:
Types of Savings & Current Accounts
IndusInd Bank offers savings accounts, salary accounts, premium salary accounts, and current accounts for retail customers.
Features, interest rates, fees of accounts
The regular savings account offers an interest rate of 4% p.a. and requires a minimum balance of Rs. 10,000. The premium salary account offers higher interest rates up to 7% p.a. but requires a minimum balance of Rs. 100,000. There are no minimum balance requirements for salary accounts. All accounts have zero balance facility available.
Account maintenance charges are applicable if minimum average balance requirements are not met. There are no charges for online transactions. Additional services like debit cards, cheque books, SMS alerts etc. have additional fees.
IndusInd Bank Loans
IndusInd Bank offers various consumer loans such as home loans, personal loans, auto loans, education loans etc.
IndusInd Home Loan:
Home loans are available for purchase of ready possession or under-construction property, home extension or renovation etc. Interest rates start at 8.5% p.a. and maximum loan amount can go up to Rs. 5 crores. Loan tenures up to 30 years are available. Eligibility criteria includes minimum age of 21 years and minimum income requirements. Documents required include KYC, income proof, property documents etc.
IndusInd Personal Loan:
Personal loans are unsecured loans available for any personal need. Interest rates start at 11.99% p.a. and maximum loan amount is Rs. 40 lakhs. Loan tenures up to 5 years are available. Eligibility and documents required are similar to home loans.
IndusInd Auto Loan:
Auto loans are available for purchase of new or used two-wheelers and cars. Interest rates start at 10.5% p.a. Maximum loan amount is Rs. 1 crore for cars and Rs. 20 lakhs for two-wheelers. Loan tenure of up to 7 years is available. One needs to provide KYC, income proof and vehicle documents.
IndusInd Education Loan:
Education loans help pay course fees and expenses for studies in India or abroad. Interest rates start at 11.5% p.a. and maximum loan amount is Rs. 1.5 crores. Course duration + 1 year is the maximum repayment period. Eligibility criteria includes admission to professional/technical courses from accredited institutes. KYC and admission proof documents are required.
IndusInd Bank Credit Cards
IndusInd Bank offers an array of credit cards catering to different user needs.
Cards for all types of users, Features and Charges
Cards are available for travel, shopping, rewards, lifestyle needs etc. Popular cards include Pioneer, Iconia and Platinum Aura cards. They come enabled with EMV chip and pin technology.
Joining and annual fees range from Rs. 500 – Rs. 5000 based on card type. Interest charges of upto 3.5% per month are applicable on unpaid dues. Cash advance charges are also applicable.
Rewards, deals and offers
Cardholders can enjoy reward points on transactions which can be redeemed for shopping, travel, dining and other vouchers. Additional offers are available on dining, travel, shopping, health, fitness and so on.
IndusInd Bank Net Banking & Mobile Banking
IndusNet and IndusMobile are the netbanking and mobile banking platforms offered.
Features, mobile apps, security protocols
IndusNet offers features like bill pay, fund transfer, opening deposits, pay taxes, shop online and so on. It has multi-factor authentication and SMS/email alerts for security. IndusMobile apps for iOS and Android offer similar features on mobile. Apps use app passwords, MPINs and device binding for enhanced security.
IndusInd Bank offers a technology-packed banking experience through credit cards, net banking and mobile banking suited for the digital age.
Business & Corporate Banking
IndusInd Bank offers a wide range of banking services for businesses and corporations. These services are designed to meet the financial needs of companies of all sizes.
Accounts like current, overdraft for businesses
IndusInd Bank provides specialized business accounts to help companies manage their finances efficiently.
Current Account: Current accounts are everyday business accounts that allow frequent transactions. There are no restrictions on the number of transactions. Companies use current accounts to receive payments from customers and make payments for business expenses. Current accounts do not earn any interest.
Overdraft Account: Overdraft accounts allow businesses to withdraw more money than they have in their account, up to a certain limit. This provides flexibility when there are mismatches between payments coming in and going out of the business account. Businesses are charged interest only on the amount overdrawn, not on the full account balance.
Business loans & credit solutions
IndusInd Bank offers various loan and credit facilities to meet both short-term and long-term funding needs of businesses.
Term Loans: Term loans are given for longer durations like 5-10 years. They provide large amounts of funds for major business purposes like starting a new project, business expansion, buying machinery/equipment, etc.
Working Capital Loans: Working capital loans are short-term loans for 1-2 years. They fulfill the day-to-day financial needs of running a business like purchasing inventory, managing operating expenses, etc.
Business Credit Cards: Business credit cards allow employees of a company to make purchases on behalf of the business. The outstanding dues are billed to the company. Credit cards provide flexibility, short-term credit and convenience for business spending.
Trade finance, Cash management services
IndusInd Bank offers trade finance services to support import and export activities. It also provides customized cash management solutions.
Letter of Credit: This ensures timely payment to exporters. The bank pays the exporter on behalf of the importer.
Bank Guarantee: This provides guarantee to importers that the exporter will fulfill the contract. The bank stands as guarantor and pays the importer if the exporter defaults.
Cash Management Services: Services like collections, payments, liquidity management and forecasting help businesses effectively manage cash flows.
The wide range of corporate banking services offered by IndusInd Bank caters to companies across various industries and business life stages. The services are aimed at supporting business growth and efficiency.
Financial Analysis & Performance
Indusind Bank is one of the leading private sector banks in India. It has shown robust growth and performance over the years. Here is an analysis of the financial performance of Indusind Bank:
Growth analysis – Branches, Revenue, Profit, Deposits
- Branches – Indusind Bank has rapidly expanded its branch network across India. It had 2,014 branches as of March 2022, up from 1,911 branches in March 2021. This reflects a growth rate of 5.4% in its branch network.
- Revenue – The total income of Indusind Bank grew from Rs. 27,201 crores in FY 2020 to Rs. 30,881 crores in FY 2021. This reflects a year-on-year growth of 13.6% in total income.
- Profit – The net profit of Indusind Bank increased from Rs. 3,274 crores in FY 2020 to Rs. 4,024 crores in FY 2021. This indicates a strong 23% growth in net profit.
- Deposits – Total deposits of the bank grew from Rs. 2,09,497 crores as of March 2020 to Rs. 2,67,627 crores as of March 2021. This shows a healthy 27.7% growth in deposits.
Market share and competitiveness
- As per RBI data, Indusind Bank had a market share of 1.94% of the overall banking industry advances as of March 2021.
- It stood at 6th position among private sector banks in terms of market share in advances.
- In terms of deposits, it had a market share of 1.63% of the overall banking industry deposits.
- This shows that while Indusind Bank has demonstrated good growth, it has scope for further improving its market share and competitiveness among private banks.
Credit ratings over the years
- Indusind Bank has maintained a stable outlook in terms of credit ratings from agencies like CRISIL and ICRA.
- CRISIL has assigned it AAA/Stable/A1+ credit rating for the last many years.
- ICRA also assigned it AAA(Stable) rating on long term loans and A1+ rating on short term debt instruments in 2021.
- The stable credit ratings indicate the strong financial risk profile of Indusind Bank. Its capital adequacy, asset quality, profitability and liquidity position is considered adequate by the rating agencies.
Customer Service Channels
IndusInd Bank is one of the leading private sector banks in India with a large network of branches and customer service channels across the country. The bank aims to provide convenient and accessible banking services to customers through multiple channels.
Overview of branches across India
IndusInd Bank has a presence across Metro, Urban, Semi-Urban and Rural areas in India. As of March 2022, the bank has a network of 2,015 branches and outlets spread across 764 geographical locations in the country.
The bank has the highest density in Maharashtra, Delhi NCR, Tamil Nadu, Karnataka, Gujarat and Uttar Pradesh. However, it also has penetration in other states like Rajasthan, Punjab, Haryana, Madhya Pradesh, West Bengal, Andhra Pradesh, Telangana, Kerala and other North Eastern states.
IndusInd Bank aims to provide services in Tier 1 to Tier 6 cities covering metros, major cities as well as smaller towns and rural areas. This widespread presence allows the bank to cater to a diverse customer profile from individuals, businesses to corporations.
Customer service channels and how to reach
IndusInd Bank offers customers multiple channels to reach out and avail banking services:
Branches
IndusInd Bank branches provide full-service banking across account opening, transactions, lending, investments and more. Customers can visit their nearest branch for assistance and services.
ATMs
The bank has a network of over 2600 ATMs across India. Customers can use IndusInd Bank debit/credit cards to withdraw cash, check account balance, get mini statements, transfer funds and more.
Phone Banking
By calling the phone banking helpline 1860 500 5003 or 1860 267 7243, customers can avail services like balance inquiry, stop payment, address change request, cheque book request and more. This is available 24×7.
Net Banking
IndusNet is the online banking platform that allows customers to securely access their IndusInd Bank accounts online and avail services like funds transfer, opening FD/RD, pay bills, recharges, investments and more.
Mobile Banking App
The IndusMobile app allows customers to bank on-the-go using their mobile phones. It offers services like account balance check, view passbook, fund transfers, pay bills, locate ATMs/branches and more. Customers can download the app on their phones.
Video Banking
Customers can also connect with the bank’s staff remotely via video calling facility to address queries and avail services. This option is available between 9 AM – 9 PM.
Doorstep Banking
IndusInd Bank also provides the facility of doorstep banking where bank staff will visit a customer’s residence or office as per request to deliver banking services.
Social Media
Customers can also get in touch with the bank via social media channels like Facebook, Twitter, Instagram, YouTube, LinkedIn for assistance. The bank’s social media handles provide support and information.
IndusInd For NRIs & Expatriates
IndusInd Bank offers a range of banking services tailored specifically for Non-Resident Indians (NRIs) and expatriates. As an NRI or expatriate, choosing the right bank that understands your unique needs is important. IndusInd Bank aims to provide customized solutions to help NRIs and expatriates efficiently manage their finances in India.
Types of accounts – NRE/NRO
IndusInd Bank offers two main types of rupee accounts for NRIs and expatriates – Non-Resident External (NRE) accounts and Non-Resident Ordinary (NRO) accounts.
NRE accounts can be opened by NRIs and expatriates using funds received in foreign currency from outside India. This account allows free repatriation of funds outside India. Interest earned on NRE accounts is tax-free in India.
NRO accounts can be opened by NRIs and expatriates using funds received in rupees in India. While this account does allow repatriation of funds, it is subject to certain limits set by RBI. Interest earned on NRO accounts is taxable in India.
Choosing between an NRE and NRO account depends on your specific situation and repatriation needs. IndusInd Bank’s team can guide you on picking the right account based on your requirements.
Investments and wealth management options
IndusInd Bank offers NRI customers a wide array of investment and wealth management options to help grow their money.
Some investment options include:
- NRE/NRO Fixed Deposits – Get guaranteed returns by parking funds in fixed deposits across various tenures.
- Mutual Funds – Invest in equity or debt mutual funds to earn potentially higher returns in the long run.
- Government Bonds and Tax Saving Bonds – Invest in government-backed securities for stable returns.
- Demat Account – Open a Demat account to invest in shares, stocks and more.
In wealth management, IndusInd Bank provides personalized solutions like portfolio management services, investment advisory, and more. Their experts analyze your financial situation and craft tailored solutions to help you meet your long-term financial goals.
Leadership & Work Culture
IndusInd Bank was founded in 1994 by Hinduja Group along with some leading NRIs in London. The bank has built a strong leadership team and positive work culture over the years.
Founders, Board of Directors and management executives
The founders of IndusInd Bank include S.P. Hinduja, G.P. Hinduja and Ashok Hinduja from the Hinduja Group. They envisioned an Indian bank that provides excellent services while adhering to Indian ethos and values.
R. Seshasayee is the Non-Executive Chairman of the Board and has vast experience in finance, automotive and technology sectors. Romesh Sobti is the Managing Director and CEO of the bank since 2008. He has over 30 years of experience in the banking sector.
The bank’s management team includes experienced professionals like S.V. Zaregaonkar (Chief Financial Officer), Soumya Rajan (ED), and Anil Ramachandran (Head of Transaction Banking). The leadership fosters a collaborative environment and encourages innovation.
CSR activities & sustainability vision
IndusInd Bank engages in various CSR and sustainability initiatives through IndusInd Foundation and IndusInd ForSight Foundation.
Some of their key CSR initiatives include:
- Supporting education for underprivileged children through grants and scholarships. Over 18,000 students have benefitted so far.
- Healthcare programs like mobile health vans and medical camps providing diagnosis and medicines in rural areas.
- Financial literacy programs that have educated over 100,000 people on money management.
- Environmental protection through tree plantation drives and solar panel installations.
The bank aims to conduct business in a responsible manner through ethical practices, transparency and customer-centric policies. They strive to create positive social and environmental impact alongside financial value creation.
IndusInd Bank has built a strong leadership team focused on ethics, innovation and sustainability. Through various CSR initiatives, they aim to serve diverse stakeholders and local communities across India.
Comparing IndusInd Bank with Rivals
IndusInd Bank is one of the leading private sector banks in India. It competes with other major private players like HDFC Bank, ICICI Bank and Axis Bank. Here is a comparison of how IndusInd Bank stacks up against these rivals on key metrics:
How IndusInd compares to HDFC, ICICI, Axis on metrics
- Market Share – IndusInd Bank has a much smaller market share compared to the big 3 private banks. As of March 2022, HDFC Bank had a market share of 11% in terms of assets, ICICI Bank had 8.7% while Axis Bank controlled 7.6%. IndusInd Bank had a market share of just 2%.
- Branch Network – HDFC Bank has the largest branch network with 5,710 branches, followed by ICICI Bank (5,275), Axis Bank (4,594) and IndusInd Bank (1,908). So IndusInd lags behind significantly in terms of physical reach.
- Total Assets – HDFC Bank is the largest with total assets of ₹15.3 lakh crore as of March 2022. ICICI Bank had assets worth ₹14.8 lakh crore while Axis Bank had ₹10.1 lakh crore. IndusInd Bank is a distant fourth with total assets of ₹3.5 lakh crore.
- Deposits – Similar trend is seen in deposits. HDFC Bank leads with deposits of ₹13.2 lakh crore followed by ICICI Bank (₹10.7 lakh crore) and Axis Bank (₹7.4 lakh crore). IndusInd lags with total deposits of ₹3.3 lakh crore.
- Advances – In terms of total advances too, IndusInd Bank trails behind with ₹2.4 lakh crore, compared to HDFC (₹12.3 lakh crore), ICICI (₹8.6 lakh crore) and Axis (₹7.1 lakh crore).
- Net Profit – HDFC Bank remains the most profitable with FY22 net profit of ₹36,961 crore versus ICICI (₹23,339 crore), Axis (₹13,025 crore) and IndusInd (₹4,809 crore).
- NPA Ratios – This is an area where IndusInd Bank scores better. Its gross NPA is at 2.35% and net NPA 1.17% versus HDFC (1.32% gross, 0.4% net), ICICI (3.6%, 0.76%) and Axis (2.54%, 0.64%).
- Capital Adequacy – IndusInd comfortably meets capital adequacy requirements. Its CAR is 18.9% versus Axis (17.5%), ICICI (16.7%) and HDFC (18%).
Digital transformation strategy and innovation
A key pillar of IndusInd Bank’s strategy is to accelerate its digital transformation. The bank aims to leverage technology to improve customer experience, increase operational efficiency and develop new revenue streams.
Some key digital initiatives include:
- Launching ‘IndusInd For You’ – a personalized AI-powered wealth management platform providing customized investment solutions.
- Implementing advanced analytics and AI to get a 360-degree customer view and offer contextual services.
- Building a modern core banking system with microservices architecture enabling faster product development.
- Introducing innovative products like video branch, biometric and paperless account opening to provide digital-first experience.
- Using APIs and building an ecosystem of partners to distribute its banking services across digital channels.
- Investing in cybersecurity and building a resilient technology infrastructure.
IndusInd Bank has also set up ‘Digital Innovation Center’ to nurture a culture of innovation. The bank incubates new ideas, delivers proofs-of-concept and accelerates development of solutions that create differentiated customer experience.
Startup ecosystem partnerships
To stay at the forefront of innovation, IndusInd Bank actively partners with fintech startups and technology companies.
The bank has created a fintech partnership model to identify synergies and jointly develop solutions. It has already onboarded over 50 fintech across lending, payments, wealth management and other areas.
Some of the key partnerships include:
- Tie-up with Google to enable account holders make payments via Google Pay.
- Integration with Cleartax to offer personalized tax filing services to customers.
- Partnership with NiYO to provide digital banking services for the gig economy workforce including drivers, maids etc.
- TekSight platform to provide 360-degree customer view and predictive analytics capabilities.
The bank also engages with startups via ‘IndusEntrepreneurs’ – its accelerator program that provides access to capital, scale and regulatory capabilities. The startups can leverage the bank’s infrastructure to build proofs-of-concept.
Conclusion & Verdict on Banking with IndusInd
Summary of products, services, performance
- Savings Accounts – IndusInd offers regular savings accounts with zero balance requirements and several variants like premium savings accounts with higher interest rates. It has innovative offerings like video branch savings accounts opened digitally.
- Current Accounts – IndusInd has current accounts tailored for businesses of all sizes. Features include high transaction limits, overdraft facilities, zero balance accounts and more.
- Loans – IndusInd provides loans for purchasing home, car, commercial property, working capital needs and more. It has pre-approved instant loans, low interest rates and minimal documentation.
- Credit Cards – There are lifetime free credit cards for both premium and regular customers. Cards come enabled with features like rewards points, lounge access and insurance benefits.
- Digital Banking – IndusInd has an advanced digital platform called IndusNet for online banking. Customers can make payments, track expenses, invest and more.
- Performance – IndusInd Bank has shown steady growth over the years. In FY21, its total deposits grew by 28% while net profits increased by 36%. It has maintained strong capital adequacy and asset quality.
Reasons to choose IndusInd Bank
Here are some key reasons why IndusInd Bank may be a good choice for your banking needs:
- Wide range of banking products catering to retail, SMEs and corporates
- Presence across India with over 2000 branches
- Advanced digital banking platforms and paperless account opening
- Competitive interest rates on savings accounts and loans
- Fast processing and approval of loans
- Strong track record of growth and financial performance
- Excellent customer service and customer-centric approach
- Higher interest rates on fixed deposits compared to large PSU banks
- Recipient of multiple awards and recognition for banking excellence