Good evening, ladies and gentlemen. I welcome you all to Indian Bank’s post-results
conference call for the second quarter of FY27, hosted by Nuvama Wealth Management
Ltd. From the top management, we have with us Shri Binod Kumar, Managing Director and
Chief Executive Officer, Shri Ashutosh Choudhury, Executive Director, Shri Shiv Bajrang
Singh, Executive Director and Ms. Mini T M, Executive Director. I request the MD Sir to
briefly summarize the key highlights of the Q2 FY27 results and provide strategic direction
on growth, margins and asset quality. We will then open the call for questions and answers.
Over to you, sir.
Shri Binod Kumar, MD & CEO
Good evening, and thank you all for participating. I will cover the key highlights, after which
we will move to the question-and-answer session.
Total business grew by 14.22%, and deposits grew by 12.50%. CASA grew well, by 13.77%.
The CASA ratio declined slightly on a sequential basis, mainly because of FCNR(B)
deposits, but on a year-on-year basis it improved from 38.87% to 39.36%. Bulk deposits
declined from Rs.1.62 lakh crore last quarter to Rs.1.52 lakh crore this quarter, a reduction
of around Rs.10,000 crore.
Advances grew by 16.39%. Corporate advances grew by 9.92%, almost in double digits,
while RAM advances grew by 17.74%. All segments are growing evenly: retail grew by
17.37%, agriculture by 17.18% and MSME by 19.06%. RAM constitutes around 67% of the
total loan book.
On profitability, I will give two sets of numbers, because our shareholding in NSE, which
was unlisted, has now been listed. On account of that, we booked a profit of Rs.252 crore,
and a gain of Rs.1,134 crore has been recognized through Mark-To-Market (MTM). Net
profit grew by 14.71% to Rs.3,462 crore.
Operating profit grew by 46.58% and crossed Rs.7,000 crore; excluding the NSE
contribution, it grew by 18%. Net interest income grew by 17.83%. Other income grew by
58.95%, driven mainly by the NSE gains.
NIM improved by 8 basis points on a year-on-year basis. Domestic NIM increased by 1 basis
point and global NIM by 2 basis points on Q-o-Q basis. We undertook some churning in the
overseas portfolio, and overseas NIM moved by 8 basis points as a result. Return on assets
was flat at 1.31% sequentially. Return on equity was 19.66%, an expansion of 18 basis
points.
Staff expenses were flat at 14.56% which is Rs.3,037 crore, while other expenses were
Rs.1,545 crore, a decline of 0.29%. The cost-to-income ratio was 44.59% including the NSE
gains and it was 39.30% excluding NSE gains. The provision coverage ratio stood at
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98.22%. Credit cost stood at 0.22%, which was declined by 1 basis point on Q-o-Q basis.
Earnings per share were Rs.102.82, and book value per share was Rs.535.
The cost of deposits increased by 9 basis points sequentially. The yield on advances
increased by 8 basis points sequentially, and the yield on investments increased by 2 basis
points sequentially. The capital adequacy ratio is 16.21%, of which CET1 is 15.18% and
Tier 2 is 1.03%.
Gross NPA declined to 1.61%, and net NPA stood at 0.14%. The slippage ratio was 0.69%,
a decline of 8 basis points from the previous quarter. The SMA book declined from 7.35% a
year ago to 4.19%, or Rs.29,748 crore in absolute terms. SMA-2 accounts above Rs.25
crore amount to only around Rs.400 crore. We are not seeing any major stress in any
account.
On guidance, I had guided for deposit growth of 9-11%, and I am revising that to 11-12%. I
had guided for advances growth of 11-13%, and I am revising that to 13-14%. I am not
revising the recovery guidance, but I believe we will do better than what we have guided.
Recoveries were almost equally distributed between larger and smaller accounts: Rs.756
crore came from accounts above Rs.1 crore and Rs.791 crore from accounts below Rs.1
crore.
The corporate credit pipeline stands at Rs.63,000 crore. Of this, Rs.30,000 crore has been
sanctioned and is yet to be disbursed, in-principle approval has been given for Rs.10,000
crore, and the remaining around Rs.23,000 crore is under discussion or at a preliminary
stage.
I will highlight two or three initiatives. Over the last few quarters, we have taken several
initiatives on CASA, including salary accounts, maintaining floats in various accounts and
providing fintech solutions to companies and government departments. These are delivering
good results. Through CRM, which was launched only in July, we have added business of
approximately Rs.1,500 crore during the quarter. We have provided fintech solutions to 223
companies and government departments taken together, adding around Rs.5,000 crore.
Similarly, through CMS, CASA balances are around Rs.7,000 crore. Our NGCC is being
used not only for query and grievance resolution but also for lead conversion; through it, we
converted around 5,000 leads amounting to around Rs.200 crore.
The MCLR-linked book constitutes 43.19% of advances, and the external benchmark-linked
book constitutes 49.65%. As you all know, the repo rate has been increased by 25 basis
points, so we should see NIM expansion of perhaps 5-6 basis points going forward. We will
see how the scenario unfolds. I will now request my colleague, Mr. Ashutosh Choudhury, to
talk about our digital initiatives.
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Shri Ashutosh Choudhury, Executive Director
Thank you, sir. Good evening, everyone. I will highlight a couple of initiatives we have taken
recently. In Q2, we launched AI conversational banking, which we have named TARA, or
Trusted AI Relationship Assistant. It enables voice-based transactions for ease of banking.
We expect it to improve customer engagement and experience, which will help us grow lowcost resources.
We have also introduced Smart Wealth, an AI-powered personal finance management tool.
In the first phase, launched in Q2, it provides analysis of expenditure and investments. In
the second phase, it will offer intelligent insights that guide customers on which expenses
they can reduce and which investments suit them. Along with these digital initiatives, digital
business has grown by 18% year-on-year. Thank you, sir.
Shri Binod Kumar, MD & CEO
Many of you will have questions about treasury, so I will explain it upfront, excluding NSE,
which I consider a one-time item. In H1 last year, we earned Rs.854 crore, and this H1 we
have earned around Rs.794 crore. In Q2 last year, we earned Rs.293 crore, and this year
Rs.290 crore. Other than NSE, there is a Mark-To-Market (MTM) loss of around Rs.11 crore
in the P&L.
Anant Dumbhare (Host, Nuvama Wealth)
Thank you, sir. We will now open the floor for Q&A session.
Ashok Ajmera, Analyst
Congratulations on a very good set of numbers, despite what is happening in the markets
and globally. I believe you are the third Public Sector Bank to declare results this quarter,
and yours is one of the best sets of results so far.
Provisions on standard assets have increased from Rs.733 crore to Rs.1,882 crore; but for
this, extra provisioning the profitability would have been much higher, although you have
benefited from the MTM profit of NSE listing gains. Is this increase due to ECL provisioning
or some other additional provisioning? Second, miscellaneous income increased to Rs.468
crore this quarter from Rs.157 crore in the previous quarter. Could you explain that?
Shri Binod Kumar, MD & CEO
You are right. We made an ECL provision of Rs.1,500 crore this quarter, and Rs.1,000 crore
in the previous quarter, taking the total ECL provision to Rs.2,500 crore. We expect the total
impact to be Rs.3,500 crore, so we are making the provision while times are good.
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On other income, it was also good last September, at around Rs.500 crore; it was lower in
June, and it is now around Rs.400 crore. This quarter it includes interest on an income tax
refund.
Shri Sunil Jain, General Manager – Chief Financial Officer
Rs.271 crore.
Shri Binod Kumar, MD & CEO
Yes, Rs.271 crore of interest on the income tax refund.
Ashok Ajmera, Analyst
So that may not be a recurring feature in the coming quarters.
Shri Binod Kumar, MD & CEO
Yes.
Ashok Ajmera, Analyst
On treasury front, every Bank is under pressure because of hardening yields, and you have
performed comparatively better than other Banks so far. Going forward, we will depend on
yield movements, although US yields have softened slightly over the last two days. Where
do you see treasury income coming from, whether trading or arbitrage opportunities, and
how do you see it unfolding in the coming quarters?
Shri Binod Kumar, MD & CEO
As I said at the last meeting, we have not been earning very high treasury income; that was
part of our strategy last year as well. Treasury income will be muted going forward, and I do
not expect very high profits from it. However, the impact in our case will not be severe,
because our numbers do not depend on high-yielding securities. We were also earning good
income from forex, and some guidelines have recently come from the RBI, so we will have
to see how that pans out. Overall, since I have not budgeted for very high treasury profit, it
will not affect our numbers.
Ashok Ajmera, Analyst
Deposits grew by almost 3.5% during the quarter, supporting credit growth. With the
FCNR(B) window now closed, will deposits continue to grow at the same pace, and will
credit growth of 5.5% this quarter continue over the next two quarters? Will you revise
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targets for both deposit and credit? Also, 43.19% of the book is MCLR-linked, and the benefit
of the 25-basis-point rate increase on the rest of the loan book must have started
immediately, while deposit repricing comes with a lag. Is that why you expect NIM to
increase by around 6-7 basis points?
Shri Binod Kumar, MD & CEO
On deposits, we managed the FCNR(B) inflows very well. Bulk deposits came down by
around Rs.10,000 crore, and we also went slow on retail deposits. Our deposit growth was
therefore not driven much by FCNR(B); last quarter, too, deposit growth was around 12%.
So, 12% deposit growth is expected and we will be able to maintain. Advances growth of
16.39% came primarily from loans against FCNR(B) deposits, which may not recur next
quarter. Even so, I expect advances growth of 14-15%, and I am comfortable with that; it
will not fall substantially.
On the MCLR question, the benefit on the external benchmark-linked book started accruing
the very next day after the repo rate increase. You are right on NIM: I think NIM will increase
by 6-7 basis points this quarter, and beyond that it will depend on how the repo rate moves.
Ashok Ajmera, Analyst
The corporate book is also growing well. What is the status of the sanctioned pipeline and
projects still under sanction? Since everybody is chasing RAM, what is your strategy for
growing the loan book through the corporate segment?
Shri Binod Kumar, MD & CEO
In corporate, I am targeting growth of 10-12%. Corporate growth is also a function of
capacity building; earlier, our corporate growth was only 1-2%. We have taken various
initiatives, including intensive credit training, and capacity building is gradually going up. I
expect corporate to grow in lower double digits. At the same time, risk is built up in good
times, so we must be mindful not to get carried away and build up risk in the book.
Ashok Ajmera, Analyst
Point well taken, sir. Thank you for the opportunity, and all the best.
Jayant Kharote, Analyst
Congratulations on a good set of numbers. Could you clarify the FCNR(B) numbers: how
much you raised in total, how much is on your own book, the leverage given against it, and
the status as of 30th September 2026? Have you utilized this liquidity completely, or is some
still on your books?
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Shri Binod Kumar, MD & CEO
We are still on the borrowing side, so we do not have surplus liquidity. We raised FCNR(B)
deposits of USD2.3 billion, or around Rs.21,000 crore. Bulk deposits came down by around
Rs.10,000 crore, from Rs.1.62 lakh crore to Rs.1.52 lakh crore. Our retail term deposit
growth is normally around Rs.10,000-11,000 crore a quarter, but this quarter we targeted
only around Rs.5,000-6,000 crore. The remaining Rs.5,000 crore has been utilized. There
is no surplus liquidity on account of FCNR(B).
Jayant Kharote, Analyst
So, of the Rs.21,000 crore raised, about Rs.15,000 crore replaced bulk deposits you did not
renew and retail deposits you did not raise?
Shri Binod Kumar, MD & CEO
Yes, it has been utilised already.
Jayant Kharote, Analyst
On the asset side, how much has been lent against these deposits?
Shri Binod Kumar, MD & CEO
Against deposits of USD2.3 billion, or Rs.21,000 crore, the loan book will be roughly USD2
billion. We have offered loans against FCNR(B) deposits at preferential rates, and
customers are borrowing up to 90-96% of the deposit value.
Jayant Kharote, Analyst
So, this is the churn in the international book you referred to, and nothing has been written
down?
Shri Binod Kumar, MD & CEO
Yes.
Jayant Kharote, Analyst
Looking at the next quarter, the growth in the international book should weigh on NIM, while
the rate hike should help. How should we think about yields next quarter? Also, CD rates
have hardened again over the last one or two weeks, so Banks are not waiting for quarterPage 6 of 16
end to raise funds. How do you see the wholesale market? I am trying to understand the
NIM construct for this quarter.
Shri Binod Kumar, MD & CEO
We will be very cautious in raising bulk deposits and may use other sources if needed. We
have taken approval to raise up to Rs.5,000 crore through Infrastructure Bonds, and we may
go for that. We are also exploring refinance opportunities; if we get a rate better than CD
and bulk deposit rates, we may use them. Otherwise, we remain very cautious on bulk
deposits. That is why I am not changing our growth view; growth of 12-13% is fine with me.
On NIM, I expect expansion of around 5-6 basis points this quarter, because deposits,
including bulk deposits, will reprice later. Some of this has already been accounted for.
Jayant Kharote, Analyst
So, after adjusting for the loans against FCNR(B), some tightening in bulk deposits and the
rate hike, you still expect NIM expansion in the third quarter?
Shri Binod Kumar, MD & CEO
Yes.
Jayant Kharote, Analyst
On ECL, you have disclosed the one-time impact and the provisions made. On the steadystate recurring impact on credit cost, you had guided for 12-15 basis points on the last call.
One of the Bank has said that hardening yields also have an impact. Would you revise your
estimate of the recurring impact on credit cost after ECL?
Shri Binod Kumar, MD & CEO
I am trying to understand how hardening yields would affect it. ECL is a function of
probability of default and loss given default. If interest rates harden, perhaps some Banks
expect higher default rates; I do not know. As per my calculation, I am not revising the
number. I expect default rates to remain under control, as reflected in our SMA book, which
has come down from 7.35% to 4.19%. There is hardly anything in accounts above Rs.25
crore. In smaller accounts, we are already factoring in an elevated default rate, which may
continue with some variation. I am not expecting any increase in defaults going forward, so
I am maintaining the 10-15 basis points.
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Jayant Kharote, Analyst
10-15 basis points. How will you manage that within the ROA construct? Will you pass it on
through pricing? Some Banks are affected and some are not, so it is unlikely that everyone
will pass it on uniformly.
Shri Binod Kumar, MD & CEO
I do not think Banks will be able to pass it on clearly, because some large loans are still
being priced at very fine rates; passing it on will be very difficult. I will wait and watch for one
year, because this is a new concept. It will take 1.5-2 years for the models to stabilize. They
will be challenged, there will be a lot of discussion, and the regulator may not accept all our
assumptions. After stabilization, the additional provision we make every quarter will
compensate for the 10-15 basis points.
Jayant Kharote, Analyst
Finally, for the LGD assumption under ECL, how many years of your book’s history have
you used?
Shri Binod Kumar, MD & CEO
Five years.
Jayant Kharote, Analyst
Is it a five-year window across products?
Shri Binod Kumar, MD & CEO
Yes, five years.
Jayant Kharote, Analyst
Thank you, sir, and congratulations again on a good set of numbers.
Mahrukh Adajania, Analyst
Congratulations, sir. Given the aggressive lending in SME, and even in agriculture and retail,
do you see any points of stress?
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Shri Binod Kumar, MD & CEO
Very candidly, nothing is reflecting so far. I cannot say what may emerge suddenly, but as
of now there is no stress.
Mahrukh Adajania, Analyst
How much have you disbursed under ECGLS so far?
Shri Binod Kumar, MD & CEO
Sanctions are Rs.8,000 crore, and disbursements of Rs.7,000 crore have already been
made across 31,000 accounts.
Mahrukh Adajania, Analyst
Do you see the scheme coming back given the drought? How will the banking sector deal
with the drought?
Shri Binod Kumar, MD & CEO
ECGLS will not come for the drought; instead, there will be a postponement of repayments.
Fortunately, our exposure in the states where drought has been declared is minimal. In the
agriculture book, it is not even Rs.1,000 crore.
Mahrukh Adajania, Analyst
Do you have any comments on banking-sector consolidation? Reports on Bank M&A keep
appearing from time to time.
Shri Binod Kumar, MD & CEO
I know only what I read in the newspapers and media. I have no additional information.
Jai Mundhra, Analyst
On the SMA book of around Rs.29,700 crore across all ticket sizes, could you give the SMA0, SMA-1 and SMA-2 amounts separately?
Shri Binod Kumar, MD & CEO
SMA-0 is Rs.15,683 crore, SMA-1 is Rs.7,222 crore and SMA-2 is Rs.6,843 crore.
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Jai Mundhra, Analyst
So, SMA-1 and SMA-2 are broadly unchanged and have improved only slightly?
Shri Binod Kumar, MD & CEO
Yes, they have improved only slightly.
Jai Mundhra, Analyst
And you continue to hold a 10% provision on both SMA-1 and SMA-2?
Shri Binod Kumar, MD & CEO
Yes.
Jai Mundhra, Analyst
Other Banks have now realized that they also need to factor in the Mark-To-Market (MTM)
impact on the HTM book. Is your Rs.3,500 crore impact only the loan-loss provision on
advances, or does it include an HTM provision?
Shri Binod Kumar, MD & CEO
It covers only the credit book. HTM will be over and above that, and we have to see. It is not
ECL; it relates to the valuation guidelines, which require a one-time Mark-To-Market (MTM)
of the HTM book on transition from 1st April. The 10-year yield is already at 7.41%. If that
happens, every Bank will have a huge impact, because the HTM book is around 60-74% of
the investment portfolio for every Bank. The guidelines stand as they are, so let us see.
Jai Mundhra, Analyst
This would apply to the entire G-Sec portfolio in HTM?
Shri Binod Kumar, MD & CEO
Yes.
Jai Mundhra, Analyst
Earlier, whenever there was such a sharp rise in yields, the RBI introduced measures such
as the AFS reserve and later said Banks need not provide further. Could it introduce some
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kind of HTM reserve in the meantime, since there are still six months to go, so that Banks
do not have to provide for the entire HTM book on one day? Or could the requirement be
diluted given the yield situation?
Shri Binod Kumar, MD & CEO
Banks would first have to take it up with the RBI; only then would the RBI respond. I will talk
with few Banks, and then we will see.
Jai Mundhra, Analyst
On gold loans, you have given the retail jewel-loan figure. What is the agricultural gold-loan
book, and how has it grown?
Shri Binod Kumar, MD & CEO
The agricultural gold-loan book has grown by around 22% year-on-year, to Rs.1.16 lakh
crore. So it has grown by around 11% on Q-o-Q basis sequentially, from Rs.1.04 lakh crore
to Rs.1.16 lakh crore, after being almost flat between March and June, at Rs.1.01-1.04 lakh
crore, because of the tightening of guidelines. It is now Rs.1.16 lakh crore. People have
since acclimatized to the new guidelines.
Jai Mundhra, Analyst
The Mark-To-Market (MTM) impact in the P&L is very small, at Rs.11 crore. What has been
the change in the AFS reserve?
Shri Binod Kumar, MD & CEO
In June, it was positive Rs.503 crore. It is now negative Rs.123 crore, a change of around
Rs.600 crore.
Jai Mundhra, Analyst
Borrowings have increased. Is this because you raised MTN Bonds overseas? How long
will these borrowings remain on the book, and will borrowing costs remain elevated?
Shri Binod Kumar, MD & CEO
We have not raised MTNs, as they are very costly. We have raised only USD400 million
through OFCB. That cost is there. In addition, we normally borrow through repo, TREPS
and similar instruments, and that has also increased.
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Jai Mundhra, Analyst
So these are not medium-term borrowings, apart from the OFCB, and they can come down?
Shri Binod Kumar, MD & CEO
I do not think they will decline, because this is a good source of funding at a good rate, at
around Rs.10,000-11,000 crore. Depending on the requirement, we borrow Rs.2,000 crore,
Rs.5,000 crore or Rs.7,000 crore at different times.
Jai Mundhra, Analyst
Finally, what was the LCR for the quarter?
Shri Binod Kumar, MD & CEO
116%.
Jai Mundhra, Analyst
Ideally, shouldn’t the LCR have gone up? Thank you; I will get back in the queue.
Sameer Bhise, Analyst
Thank you for the opportunity, and congratulations on a good quarter. Could you clarify the
update on the impact of unconditionally cancellable commitments (UCC) on CET1 and Tier
2 capital, and how it affects the Bank?
Shri Binod Kumar, MD & CEO
It is a one-time impact. We have been proactively making provisions for ECL and other
items, and we had included part of them in Tier 2 capital. The regulator’s view is that since
these provisions have been identified for a specific purpose, they are not free reserves and
should not form part of Tier 2. That is a one-time adjustment, and going forward we will not
include such provisions.
In addition, our loan documents state that limits can be cancelled at any time, so we were
not applying a credit conversion factor to the unavailed portion. The regulator has taken a
different view on whether limits can be cancelled at any time, so it is an interpretation issue.
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Sameer Bhise, Analyst
So you now have to compute credit RWA including the unutilized portion as well?
Shri Binod Kumar, MD & CEO
Yes, including the unutilized portion.
Sameer Bhise, Analyst
Does this affect capital planning or incremental business in any way?
Shri Binod Kumar, MD & CEO
No. The capital adequacy ratio is already 16.21%, and by March-end profits will be ploughed
back, taking it to around 17-17.5%.
Sameer Bhise, Analyst
That is very comfortable, sir.
Shri Binod Kumar, MD & CEO
Yes. Last year, AT1 Bonds of Rs.2,000 crore and Tier 2 Bonds of Rs.3,000 crore was retired,
and we have not raised capital again this year. In January, Tier 2 Bonds of Rs.1,000 crore
will mature, so we may raise Rs.1,000-2,000 crore of Tier 2 capital, depending on market
conditions.
Sameer Bhise, Analyst
Thank you, sir, and all the best.
Ashlesh, Analyst
Good evening, and congratulations. What was the yield on the gold-loan portfolio in the
September quarter, and what was it in the June quarter?
Shri Chandrasekaran V, General Manager - FI / RBD / SLBC / RRB
It is around 8.85%, as we charge one-year MCLR.
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Shri Binod Kumar, MD & CEO
It is 8.85%, as it was the same in June and now.
Ashlesh, Analyst
Are you seeing any change in competitive intensity across segments, such as corporate and
retail housing?
Shri Binod Kumar, MD & CEO
Competition is already very high in all segments. In housing loans, many Banks are lending
below 7%, so there is little scope to expect more than that. My comfort is that we are not
pursuing growth very aggressively. We are growing at around 16-17%, and I am fine with
that. I am not targeting 20-25%, because that would ultimately affect the bottom line and
underwriting quality. To give you one number, 92% of our book has a CIBIL score above
750. We are not compromising on quality in any way. Competition is there and will remain.
Ashlesh, Analyst
Does the 92% figure pertain to housing or the entire retail book?
Shri Binod Kumar, MD & CEO
The entire retail book.
Ashlesh, Analyst
In the housing portfolio, where are you originating the book? If you source Rs.100 of loans
in a quarter, what proportion comes from your own branches, co-lending, DSAs and so on?
Shri Binod Kumar, MD & CEO
Co-lending is zero, and we are not taking any pool assignments either. In housing loans,
around 40% is sourced through DSAs and 60% through branches. In vehicle loans, the DSA
share is higher.
Ashlesh, Analyst
Lastly, looking at drawdowns of limits in the corporate and MSME portfolios since FebruaryMarch, what proportion was driven by the Middle East crisis?
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Shri Binod Kumar, MD & CEO
I cannot give an exact number, but I can give you a sense. Our WCDL book is almost
stagnant; in fact, it has declined by Rs.1,000-2,000 crore. The cash-credit book has also
declined by Rs.1,000-2,000 crore, and MSME also around Rs.10,000 crore remains
undrawn. So, I do not see drawdowns increasing because of the crisis. I do not have the
exact number; I am interpreting from the broad numbers.
Ashlesh, Analyst
Over what period has this decline occurred?
Shri Binod Kumar, MD & CEO
Over the last two to three quarters. It is not going up.
Ashlesh, Analyst
Thank you, sir, and good luck.
Aman Singh, Analyst
You mentioned that the LCR for the quarter is 116%. With the FCNR(B) deposits, there was
a lot of stable retail deposit inflow this quarter, so the LCR should ideally have gone up.
Could you explain?
Shri Binod Kumar, MD & CEO
The LCR is being affected by borrowings, and we also have less excess SLR (HQLA). We
are not purchasing additional SLR securities because the LCR is comfortable. I had also
expected the LCR to go up, but for that we would have to buy more SLR securities.
Aman Singh, Analyst
Have corporate yields improved in the second quarter compared with the previous two
quarters?
Shri Binod Kumar, MD & CEO
The overall yield on advances has increased by 8 basis points. What is the corporate yield?
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Shri Sunil Jain, General Manager – Chief Financial Officer
The corporate yield is 8.49%, compared with 8.36% in June.
Shri Binod Kumar, MD & CEO
So, it has improved from 8.36% to 8.49%.
Aman Singh, Analyst
Thank you so much, sir.
Anant Dumbhare (Host, Nuvama Wealth)
We will take that as the last question. With this, we come to the end of Indian Bank’s postresults conference call for Q2 FY27. I now request the management to give their closing
remarks.
Shri Binod Kumar, MD & CEO
We have already discussed every point. We are trying to grow in a very balanced way,
keeping track of both growth and the bottom line. We remain cautious on NIM and on growth,
and we devise our strategy accordingly. We are pursuing neither very aggressive nor very
subdued growth; we will not be off the mark by more than 100-200 basis points relative to
the industry either way.
I will highlight two or three things on CASA. This year so far, we have added around 2.5 lakh
salary accounts, against a total addition of 3 lakh last year, and salary account balances
have increased by around Rs.1,400 crore. Through the fintech solutions we have provided,
we added around Rs.5,000 crore this quarter alone. The various CASA initiatives we have
taken over the last two to three quarters are yielding good results. We hope to maintain a
CASA ratio of around 40%. I had expected 40% this quarter as well, but the disproportionate
increase in FCNR(B) deposits kept it slightly below that. Thank you.
Anant Dumbhare (Host, Nuvama Wealth)
On behalf of Nuvama Wealth Management, I thank the management of Indian Bank and all
the participants for joining. Have a good evening.
Shri Binod Kumar, MD & CEO
Thank you all.
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