Indian Bank Boosts Growth Forecasts Significantly

Indian Bank has revised its financial year 2027 growth targets upwards, driven by robust performance in the first half of the fiscal year. The bank now projects advances growth between 13-14 percent and deposit growth between 11-12 percent, an increase from previous estimates. This optimistic outlook is supported by a 16 percent year-on-year increase in gross advances to Rs 7.22 trillion and a 12.5 percent rise in total deposits to Rs 8.7 trillion in the July-September quarter of FY27.

The institution is actively preparing for the upcoming expected credit loss (ECL) framework, which is set to be adopted from April 1, 2027. Indian Bank anticipates the transition will impact its provisions by approximately Rs 3,500 crore, having already set aside Rs 2,500 crore. An additional Rs 1,000 crore is planned over the next two quarters to ensure a smooth shift to this forward-looking provisioning model.

Growth strategies include a strong focus on acquiring salary accounts, with 2.5 lakh new accounts added in the first half of the fiscal year, contributing to a rise in average balances. Furthermore, the bank has attracted around Rs 5,000 crore in current and savings account deposits through its fintech solutions. Technology remains a priority, with a Rs 2,000 crore budget for the financial year, including Rs 65 crore dedicated to artificial intelligence initiatives.