The difficult phase for the microfinance business is now behind us, with risks playing out favourably, and growth in the segment is expected to return from the second quarter onwards, IndusInd Bank MD and CEO Rajiv Anand has said.
IndusInd Bank faced a severe governance and accounting crisis in 2025 centred around its microfinance subsidiary, Bharat Financial Inclusion Ltd (BFIL).
The bank reversed Rs 674 crore of cumulative interest income recognised incorrectly across FY25. A further Rs 172 crore was disclosed as fraud, where employees falsely reported the sum as fee income in the microfinance business.
“We have had a fairly difficult time on our microfinance business. But it is all now behind us. Risk is playing out quite well at this point in time and Q2 onwards we should see growth come back in our microfinance businesses,” Anand told PTI in an interview.
The microfinance arm has a very successful business called Bharat Superstore, where it lends to kirana stores, small …
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