IndusInd Bank , a leading private sector bank in India, has announced the launch of 'Indus Startup Banking', a comprehensive banking programme designed to support and empower early-stage startups in the country. This initiative marks the bank's strategic entry into specialized banking services for the burgeoning startup ecosystem in India, amidst significant internal changes and financial developments.

Empowering Entrepreneurs with 360-Degree Support

The 'Indus Startup Banking' programme offers a full stack of banking facilities, credit options, and beyond-banking services to support new-age ventures from inception to scale. Startups under 10 years of vintage can avail themselves of this tailored banking solution, which aims to simplify day-to-day operations and reduce financial friction for emerging businesses.

Key Features of Indus Startup Banking

IndusInd Bank has curated a range of offerings to address the unique needs of startups:

• Financial Benefits: Startup Current Accounts with a 3-year waiver on non-maintenance charges
• Tech Integration: Access to over 250 APIs via a developer portal
• Business Solutions: Payments and collections solutions, corporate salary accounts for employees
• Value-Added Services: Beyond-banking services including tax filing, legal advisory, HRMS, and ESOP management
• Networking Opportunities: Access to premium PIONEER lounges across eight major cities for client and investor meetings
• Exclusive Privileges: PIONEER personal banking privileges for founders

Targeting India's Growing Startup Ecosystem

With India boasting over 1.75 lakh DPIIT-recognised startups and ranking as the third-largest startup ecosystem globally, IndusInd Bank's initiative is timely and strategic. The bank aims to partner with founders, offering flexible and customized solutions that allow entrepreneurs to focus on building their core business.

Leadership Perspective and Internal Changes

Soumitra Sen, Head of Consumer Banking & Marketing at IndusInd Bank, commented on the initiative:

"With the Indus StartUp Banking programme, we aim to stand by the aspiring and innovative entrepreneurs of the country as not just a banking partner, but as a long-term partner in growth. Our offering is designed to simplify day-to-day operations, reduce financial friction, and provide startup founders a platform to scale confidently."

Meanwhile, the bank is undergoing significant internal changes. The total workforce decreased by 663 employees to 44,974, while the number of employees earning at least ₹1.02 crore annually increased by 16.20% to 122. This high-earning group has more than doubled from 58 in FY21, growing at an annual rate of 11.40% over five years, compared to 8.00% growth for the total headcount.

Financial Performance and Leadership Transition

IndusInd Bank reported a 70.50% decline in net profit to ₹2,643.00 crore, attributed to higher provisioning for discrepancies in derivatives portfolio accounts. Employee costs rose 10.42% to ₹4,301.00 crore, while the median fixed remuneration increased by 7.30%.

In a significant leadership change, Managing Director Sumant Kathpalia, who earned ₹7.50 crore in the fiscal year, resigned in April. Rajiv Anand is set to become the new MD and CEO from August 25, 2025 to August 24, 2028, taking charge amid issues related to alleged irregularities in bad loan recognition and trading reversals.

Broader Support for the Startup Ecosystem

In addition to the new banking programme, IndusInd Bank continues to bolster India's startup ecosystem through strategic partnerships with organizations such as AIC STPINEXT, DPIIT - Startup India, and IIM Lucknow EIC.

Conclusion

The launch of 'Indus Startup Banking' underscores IndusInd Bank's commitment to innovation and its recognition of the vital role startups play in driving economic growth. By offering tailored financial solutions and support services, the bank is positioning itself as a key enabler in India's entrepreneurial landscape, helping to nurture the next generation of business leaders and innovators. This initiative comes at a time of significant internal changes and challenges for the bank, highlighting its focus on future growth and adaptation to the evolving financial landscape.

IndusInd Bank , a prominent player in India's banking sector, has announced a strategic shift and leadership change following significant accounting lapses and financial setbacks. The bank's Chairman, Sunil Mehta, recently outlined the institution's strategy for fiscal year 2026, emphasizing a renewed focus on retail operations and prudent corporate lending.

Strategic Focus for FY26

Chairman Mehta detailed the bank's three-pronged approach for the coming fiscal year:

1. Ramping up retail liabilities
2. Scaling secured retail and MSME (Micro, Small, and Medium Enterprises) assets
3. Adopting a selective approach to corporate lending

This strategy aims to strengthen the bank's position in the retail sector while maintaining a cautious stance on corporate financing.

Financial Setbacks and Accounting Lapses

The announcement comes in the wake of significant financial challenges faced by IndusInd Bank. For the March quarter, the bank reported a consolidated net loss of Rs 2,329.00 crore. This loss was attributed to a series of accounting lapses totaling Rs 3,248.00 crore:

Chairman Mehta acknowledged that these lapses were "inappropriate for a bank of their stature," underlining the severity of the situation.

Leadership Transition

In light of these developments, the bank is undergoing a significant leadership change:

• MD and CEO Sumant Kathpalia resigned on April 29, 2025
• Rajiv Anand, former Deputy Managing Director of Axis Bank, has been appointed as the new MD and CEO
• Anand's tenure is set to begin on August 25, 2025

Commitment to Governance and Cultural Transformation

Chairman Mehta emphasized the board's commitment to:

1. Improving governance practices
2. Enhancing transparency
3. Initiating a cultural transformation rooted in ethics and accountability

These measures are aimed at restoring confidence in the bank's operations and preventing future lapses.

The coming months will be crucial for IndusInd Bank as it navigates through these challenges, implements its new strategy, and works towards regaining its financial footing under new leadership.