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Indian Bank Eyes $2B Deposits Amid Growth Focus
11 Jul
Summary
- Bank targets $2 billion from FCNR(B) deposits and ECBs by September.
- Loan growth prioritizes profitability over aggressive expansion.
- Significant investment in technology and AI for customer service.
Indian Bank is focusing on key growth areas including MSME, retail, and agriculture sectors, while strongly emphasizing profitability. The bank plans to raise approximately $2 billion by the end of September through a combination of FCNR(B) deposits and external commercial borrowings (ECBs), utilizing its GIFT City and Singapore operations to attract Non-Resident Indians.
While maintaining a loan growth guidance of 11-13%, the bank prioritizes return on assets and net interest margin over aggressive expansion. Investments of around Rs 2,000 crore annually are allocated to technology and cybersecurity, with an aggressive push into AI initiatives, including a planned launch of conversational AI.
The bank is also enhancing its CASA ratio through relationship banking and expanding salary accounts. Looking ahead, Indian Bank intends to establish a dedicated wealth management vertical by the second half of FY27. Key priorities for the upcoming fiscal year include increasing CASA to over 40%, boosting digital business share, and driving cross-selling efforts.
