Indian Bank to keep its FY25 guidance unchanged, says MD Shanti Lal Jain

Indian Bank's MD & CEO Shanti Lal Jain confirms steady growth path, unchanged guidance for FY25.

Indian Bank is on the right growth path and the guidance for FY25 remains unchanged, said its MD & CEO Shanti Lal Jain.

“We are on right track with respect to deposits, advances and recovery. Our guidance for the current fiscal remains unchanged,” he said during an interaction.

The public sector lender has set itself a credit growth target of 11-13% for the current fiscal and has achieved 12% in the first half. In the case of deposits, it set the target at 8-10% and achieved 8%. Besides, it raised an infrastructure bond of ₹10,000 crore, which is 1.5%. Along with 8% deposits growth, it now stands at 9.5%.

“We will continue to maintain the guidance in respect of deposits, advances and recovery,” he said adding that in the first half the bank had recovered ₹3,958 crore against the target of ₹7,000-7,500 crore for the whole year. Our recoveries are more than slippages and we are confident of maintaining it.”

Mr. Jain said that the asset quality of the bank has been improving since the amalgamation with the Allahabad Bank in March 2020. Gross non-performing asset has declined to 3.48% from 11.4% and net non-performing asset contracted to 0.27% from 4.20%. Provision coverage improved to 97.60%

“Asset quality is under control. Bank is adequately capitalised. We also have an enabling resolution to raise ₹5,000 crore,” he said.

Executive Director Mahesh Kumar Bajaj said that digital transactions at branch level has increased from 87% to 92%.