Indian Bank plans to recover ₹7,000 cr. bad debts in FY25

Indian Bank aims to recover ₹7,000 crore bad debts this fiscal, with plans for fund raising and branch expansion.

Indian Bank is planning to recover ₹7,000 crore of bad debts in this fiscal against ₹8,800 crore recovered in the year-earlier period, said MD & CEO Shanti Lal Jain.

“Last time, we recovered about ₹8,800 crore. But this number may come down. We will be making a recovery of about ₹7,000 crore,” Mr. Jain said at a press meet.

Asserting that the lender would recover about ₹1,750 per quarter, he said in the first quarter it had recovered ₹1,937 crore. Cash recovery was more than the slippages of ₹1,928 crore, the CEO said.

Elaborating further, he said MSMEs accounted for slippages of ₹900 crore, followed by agri (₹600 crore) and ₹400 crore from retail.

“We also recovered ₹300 crore. In Q1, we contained the slippage ratio from 1.57% to 1.5%,” Mr. Jain said.

On the fund raising, he said the bank was adequately capitalised. Besides, approvals had been obtained from the board and shareholders to raise ₹5,000 crore through equity, ₹2,000 crore through Tier II Bonds and ₹5,000 crore of infra bonds in FY25.

To a question on how much the lender was planning to recover through asset reconstruction company (ARC), he said last year the bank recovered ₹464 crore via ARC and plans to recover ₹400 crore in this fiscal.