Latest news with #IndianBank
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Business Standard
3 days ago
- Business
- Business Standard
Indian Bank launches new savings accounts for NRIs with global access
Indian Bank, on Saturday, rolled out new Savings Account variants specifically tailored for Non-Resident Indian (NRI), the bank said in a press release. The Bank's new offerings aimed at a seamless combination of traditional trust and modern conveniences, reinforcing its position as a trusted banking partner for NRIs around the globe. Shri Binod Kumar, managing director and CEO, said, 'At Indian Bank, we are committed to providing our NRI customers with top-notch digital banking solutions that prioritise convenience, security, and value. Our latest offerings aim to enhance the relationship between the bank and our global Indian community, ensuring they feel connected to their roots while accessing smooth banking services.' The new product is designed specifically for the changing financial lifestyles and requirements of NRIs. 'These products are packaged with top-tier debit cards—IND D'Elite, IND Premium, and IND Plus—that offer a variety of exceptional advantages, including: Airport Lounge Access (Domestic & International), Personal Accident Cover and Exclusive Loyalty Offers,' the press release said.
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Business Standard
4 days ago
- Business
- Business Standard
Nifty PSU Bank index surges 3%; SBI, IOB, Canara, Union Bank rally up to 4%
Public Sector Banks price movement today Shares of public sector banks (PSBs) were in focus, with frontline stocks gaining up to 4 per cent on the National Stock Exchange (NSE) in Friday's intra-day trade in an otherwise subdued market. State Bank of India (SBI), Indian Bank, Indian Overseas Bank (IOB), Bank of Maharashtra, Union Bank of India, Uco Bank, Punjab & Sind Bank, Central Bank of India, Canara Bank, Bank of Baroda and Punjab National Bank were up in the range of 2 per cent to 4 per cent. At 01:37 PM; Nifty PSU Bank index, the top gainer among financial indices, was up 2.8 per cent, as compared to 0.25 per cent decline in Nifty 50. Nifty Financial Services and Nifty Private Bank were down 0.09 per cent and 0.22 per cent, respectively, while Nifty Bank was up 0.22 per cent. What's driving the rally in PSU Banks? According to a Times of India report, India's public sector banks have spearheaded a remarkable turnaround, driving the banking sector to record profits of ₹3.71 trillion. Fueled by increased lending income and reduced nonperforming assets (NPAs), PSU Banks saw a 26 per cent profit surge, nearing private bank's earnings. Meanwhile, according to analysts at YES Securities, PSU banks are relatively better placed to handle margin. The coverage PSU banks viz. SBI, BOB and India Bank will need a relatively smaller reduction in deposit rates compared with large cap private sector banks. The brokerage firm's exhaustive analysis reveals that the Q4FY26 net interest margin for SBI, BOB and Indian Bank would be 2, 13 and 22 bps lower than Q4FY25 levels if no further deposit rate cuts are effected. The primary aspect that protects the select PSU banks is their high share of MCLR, which ranges between 52-60 per cent. Some private sector banks have cut 1-year MCLR by 5-25 bps over Feb-May 2025, which is a smaller quantum compared with the 50 bps repo rate cut effected over this period. Secondly, this MCLR reduction will flow through MCLR (Marginal Cost of Funds based Lending Rate) book only over a period of time. Thirdly, coverage PSU banks are yet to cut 1-year MCLR during this period. MCLR is a discretionary metric although, on paper, it is said to be formulaic. The tenor premium allows management to exert material discretion over MCLR. Going forward, stable private sector banks will have limited room to cut SA rates unless PSU banks make a move first, the brokerage firm said in banking sector report. The Reserve Bank of India (RBI) has cut rates by 25 bps each in February and April 2025 and is expected to deliver 25 bps cuts each in June and August 2025. Ample banking system liquidity and subdued credit demand are expected to drive a sharp decline in deposit rates along with reduction in rates on EBLR loans. Banks with a strong deposit franchise and faster balance sheet growth will be better positioned to pass on rate cuts effectively, according to SBI Capital Markets. Furthermore, the anticipated relaxation of the Liquidity Coverage Ratio (LCR) norms, combined with currently elevated LCR buffers, could allow banks to reduce their excess liquidity by up to 6pp - unlocking additional capacity for credit expansion. Supported by trading gains, robust fee income, and historically low NPAs, banks are well-placed to sustain record profits in FY26, the brokerage firm said Indian Banking sector report. Overall, asset quality outlook is stable to positive for the sector, except for the unsecured retail loans and microfinance institution (MFI) segment. The brokerage firm Mirae Asset Sharekhan believes banks with a robust capital base, strong asset quality, and healthy retail deposit franchises are well-placed to capture growth opportunities. However, according to Motilal Oswal Financial Services, the latest channel check reaffirms its view that the systemic credit growth will sustain at 11-12 per cent YoY for FY26E (similar to FY25 levels) with lenders prioritizing asset quality amid tighter underwriting and higher risk aversion. Retail disbursals are flowing selectively into high-score, well-documented profiles, while unsecured and surrogate loans are facing elevated scrutiny. Corporate lending is being driven by demand for working capital and policy-linked sectors, even as borrowers increasingly favor low leverage and higher reliance on internal funding. The brokerage firm thus estimates corporate loan growth to remain modest during FY26E as well. PSU banks continue to lose ground due to tech and turnaround time (TAT) challenges, while private players leverage better execution and commission dynamics to win market share.
The Hindu
26-05-2025
- Business
- The Hindu
Optimistic about achieving 10-12% credit growth for FY26: Indian Bank MD Binod Kumar
Chennai-based Indian Bank is optimistic about achieving its credit growth target of 10-12% for the financial year 2026. 'Overall, at the industry level, there is a concern of a slowdown in credit growth,' Binod Kumar, Managing Director & CEO of Indian Bank said in an interview. 'Credit growth slowdown is on two or three counts. One is retail — where slowdown is primarily because of unsecured lending and credit cards, where we don't have much exposure,' 'We remain optimistic about achieving our 10-12% credit growth target for the financial year 2026, supported by an improving macro environment, expected policy rate cuts, and stronger retail and MSME credit demand,' he said. Our Retail and MSME book grew by 14% and 12% respectively last year, and we aim to sustain that momentum, Mr. Kumar said. He said Indian Bank is focusing on home loans, cluster-based MSME lending and supply chain financing which brought in ₹ 1,300 crore business last year. On the corporate side, we're focusing on champion sectors such as data centres, chemicals, engineering, electric vehicle, oil & gas, and renewable energy. With steady economic momentum and supportive regulations, we expect our growth to align well with industry trends, Mr. Kumar said. 'On the corporate side we are seeing demand for brownfield expansion and not much for greenfield expansion. Also big companies are meeting their funding needs from their internal accruals and in case of term loans the disbursement is only 20-30% when compared to the sanctioned amount. So firms have been conservative in taking loans from banks,' he said. Mr. Kumar said the bank will also focus on sectors like smart metering, city gas distribution. He said the two interest rate cuts by the Reserve Bank of India (RBI) and also expectations of further cuts is likely to spur credit demand. 'Many postponed their projects due to higher interest rates. Also the rate cuts will increase the credit demand from retail, especially in segments like home loans,' he said. On the deposits front, Mr. Kumar pointed out that current account and savings account (CASA) deposits have been a concern for all banks, with growth being flat. 'The term deposits of up to ₹ 3 crore is growing 9-10%. The rate difference between savings and term deposits is over 4.5%. With the rate cuts that differential benefit won't be there,' he said. 'We sustained a CASA ratio above 40% in the last financial year. To strengthen our deposit base further, we're increasing our Resource Acquisition Centres (RACS) with an additional 25 RACs planned in this fiscal. We're also introducing innovative deposit products like green deposits, floating-rate FDs, and auto-sweep facilities to attract diverse customer segments. Going forward, we believe personalized engagement through digital adoption will be key to sustaining CASA and driving deposit growth in a competitive landscape,' Mr. Kumar said. Additionally, recent tax measures in the Union Budget are expected to support deposit mobilisation, he added. On the Supreme Court verdict directing liquidation of Bhushan Power and Steel (BPSL) and terminating the earlier resolution plan of JSW Steel, Mr. Kumar said the bank is on a wait and watch mode and will take appropriate steps in co-ordination with Committee of Creditors to safeguard its interest and maximise recoveries. The bank had an exposure of ₹2,618.34 crore in BPSL as on December 31, 2020 and recovered ₹1,265.87 crore via resolution plan. He said RBI's liquidity measures have been helpful and the impact is visible on the bulk deposit side where there is a reduction in rate by 60-70 basis points.
Time of India
25-05-2025
- Business
- Time of India
Vigil over unsecured loans may weigh on credit growth: Binod Kumar, MD, Indian Bank
The global trade realignments following the tariff war as well as a cautious approach towards unsecured lending and difficulties in mobilising public deposits at home front are expected to temper the banking sector's growth momentum, Indian Bank managing director Binod Kumar told ET. In an exclusive interview with ET , Kumar, however, said that Indian Bank is targeting 12% credit growth and has laid down a strategy to achieve it. Edited excerpts : Several banks have lowered their loan growth projections for FY26. Credit ratings companies have also cautioned about slower credit expansion after two years of mid-teen growth. Why are these expectations subdued? A cautious approach towards unsecured lending, coupled with efforts to higher credit-deposit ratios amid sluggish deposit growth is moderating overall credit expansion. Additionally, household savings behaviour has shifted over the years, with rising inflation driving savers toward alternatives like capital markets, real estate and impact of proposed US tariffs on global trade is likely to hit India's real GDP growth. While the outlook for FY26 remains positive due to monetary easing and improved liquidity, these near-term challenges are expected to temper the banking sector's growth momentum. Has the retail credit market saturated? The Indian retail credit industry remains far from saturation due to several factors. The country continues to add many working-age citizens, particularly millennials and Gen Z, who have better incomes and changing spending habits. Increased global integration and upward social mobility have significantly influenced consumer behaviour, creating new demand for credit. Moreover, fintechs and NBFCs have successfully penetrated previously underserved customer segments, allowing individuals without credit history or collateral to access loans. The rise of digital lending platforms and improved credit evaluation processes have further lowered barriers to credit certain retail loan categories in FY25 have seen a moderation in growth rates, the market continues to evolve with new players and shifting consumer preferences, ensuring that the retail credit industry still has substantial room for expansion. Given these dynamics, we remain optimistic about sustaining our momentum and are targeting a 15% growth in retail credit this fiscal year. What is Indian Bank's overall growth guidance? We have projected an 8-12% deposit growth and 10-12% advances growth for FY26. Last year, we had given a projection of 8-12% deposits growth and 11-13% advances growth, while we grew deposits by 7.1% and advances by 10.1%. This year we expect to achieve the upper end of the growth target in advance. What makes you think you can achieve the target this time? Besides retail lending, we are focusing on corporate and MSME loans this year. In FY25, our corporate loan grew by merely 3% as we shed about ₹10,000 crore of low-yielding assets. This year, the target is to grow our corporate book by 10%. Last fiscal, the MSME book grew by 5-6%. This year we are targeting 15% are taking proactive steps to achieve this. Instead of waiting for customers to come to us, we are identifying good customers and reaching out to them. We are sending a team from the corporate office to large and MSME customers. What are your plans towards retail lending? We have set up Ind Bank Global Support Services last year to help us source retail clients and provide support services. The wholly-owned subsidiary will also offer call centre operations, back-end processing, and administrative services to the bank. At present, we are ramping it up-increasing its geographical presence while hiring is going on.I have also told my team to strengthen the credit card vertical and target HNI customers. The default in credit card business is mainly seen in the lower end of the customer segment. Our credit card portfolio is merely ₹500 crore. How are the bank's other subsidiaries and joint ventures doing? Is there any plan to monetise them? No, there is no plan to monetise them as they are creating good value for us, especially the JV Universal Sompo General Insurance. Meanwhile, the housing subsidiary is defunct, and we are in the process of closing it down.
New Indian Express
24-05-2025
- Business
- New Indian Express
Puducherry unveils annual credit plan 2025–26 with Rs 12,100 crore outlay
PUDUCHERRY: The Annual Credit Plan (ACP) for the Union Territory of Puducherry for the financial year 2025–26, with a projected credit outlay of Rs 12,100 crore, was released on Thursday by Indian Bank, the convenor of the State Level Bankers' Committee (SLBC). The plan, covering the four regions of Puducherry Puducherry, Karaikal, Mahe, and Yanam was jointly launched by Lok Sabha MP V. Vaithilingam, Rajya Sabha MP S. Selvaganabathy, Indian Bank Executive Director and SLBC Chairman Shiv Bajrang Singh, and Secretary to Government (Finance), Ashish Madhaorao More. The ACP has been framed based on the assessed potential of various sectors and the credit performance of the previous year. A significant thrust has been placed on priority sector lending, with Rs 7,255 crore (60%) earmarked for agriculture, Rs 4,325 crore (35.73%) for Micro, Small and Medium Enterprises (MSMEs), and Rs 520 crore (4.27%) for other priority sectors.
