Indian Bank aims to conclude the current fiscal year with a robust credit growth of 10-12%, according to a statement by the Managing Director and CEO, S.L. Jain. Over the past nine months, the bank has exceeded expectations, witnessing a 10% growth in deposits and a 13% increase in advances, outperforming the targeted 8-10% and 10-12%, respectively.
Mr. Jain highlighted the bank’s strong performance across various parameters, stating, “The bank is in a favorable position with ample capitalization. We are optimistic about achieving a growth rate of 10-12% by the end of the fiscal year.”
In terms of recovery, Jain emphasized that the bank’s efforts have outpaced setbacks, setting an initial recovery target of ₹8,000 crore. So far, the bank has successfully recovered over ₹6,700 crore, surpassing the set target. Jain expressed confidence in exceeding the recovery goal by the end of the fiscal year.
Furthermore, Mr. Jain outlined the bank’s strategic focus on maintaining Gross and Net Non-Performing Assets below 5% and 1%, respectively, with the bank already achieving these benchmarks.
Looking ahead, Indian Bank plans to concentrate on three key areas: digitalization, human resources, and business growth. Jain revealed that digital transactions have surged from ₹23,000 crore in Q2 to ₹52,000 crore in Q3, with a target of reaching ₹70,000 crore by Q4. The bank is set to invest ₹220 crore over three years to enhance its cybersecurity infrastructure.
Additionally, Indian Bank has received approval from the Reserve Bank to establish a wholly-owned subsidiary, focusing on back-office processing, ATM reconciliation, collection, recovery, sales, marketing, and call center operations. The subsidiary will commence operations in the next fiscal year, with a capital infusion of ₹10 crore. The bank is currently in the process of recruiting top-level officials, including a CEO, COO, and CTO, for this venture.
