- Indian Bank targets 16% credit growth driven by green energy and data centres
- Credit growth funded through CASA and bulk deposits, says MD Binod Kumar
- Bank achieved $2.4 billion FCNR-B deposits, exceeding $2 billion target
Indian Bank In Focus: Indian Bank is looking to step up credit growth to around 16%, with the lender seeing strong lending demand from emerging sectors such as green energy and data centres, Managing Director and CEO Binod Kumar said.
Kumar told NDTV Profit the bank expects credit growth to be funded through a combination of CASA and bulk deposits. He added that Indian Bank is seeing overall bank credit growth of around 18%, prompting it to revise its own credit growth expectations.
On the deposit side, Indian Bank had initially targeted FCNR-B flows of up to $2 billion but has already achieved flows of $2.4 billion. Around 40% of FCNR-B deposits are leveraged, Kumar said.
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Kumar also indicated that the higher credit growth and funding mix are unlikely to have much implication for the bank's net interest income or net interest margin.
That said, on the bourses, Indian Bank shares rose up to 3.21% to hit an intraday high of Rs 906.25 per share. At 12:33 pm, the stock was trading 1.92% higher at Rs 894.85 per share. In comparison, BSE Sensex was trading flat at 76,593 levels.
Financially, Indian Bank reported a 10% YoY increase in Q1FY27 net profit to Rs 3,273 crore. Net interest income rose 17% to Rs 7,435 crore, while operating profit increased 16.5% to Rs 5,557 crore.
Asset quality also improved during the quarter, with gross NPA declining to 1.86% from 1.98% sequentially, while net NPA remained at 0.15%.
With credit growth expectations being revised higher and demand emerging from green energy and data centres, the lender's ability to scale loans while protecting margins will be a key monitorable going ahead.
ALSO READ: Indian Bank Q1 Result: Net Profit Rises 10% To Rs 3,273 Crore, Gross NPA Drops To 1.86%
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