Indian Bank to Provide Rs 400 billion in Corporate Loans for FY25
ECONOMY & POLICY

Indian Bank to Provide Rs 400 billion in Corporate Loans for FY25

Indian Bank's Managing Director and CEO, S L Jain, announced that the bank has a corporate loan pipeline amounting to Rs 400 billion for the fiscal year FY25. The loans are distributed across various sectors, including iron and steel, road infrastructure, non-banking financial companies (NBFCs), renewable energy, and city gas distribution. During a press briefing, Jain revealed that approximately Rs 190 billion of the Rs 400 billion pipeline remains undisbursed in terms of working capital.

Jain elaborated that in addition to major corporate sectors such as road infrastructure, NBFCs, renewable energy, smart metering, and city gas distribution, the bank has also ventured into the metal sector. Corporate lending represents 38 per cent of the bank?s total loan portfolio, with the remaining portion allocated to retail, agriculture, and MSME (RAM) sectors. The bank?s total corporate outstanding loans are Rs 1.9 trillion, and the corporate collection efficiency stands at 99 per cent.

When asked about deposit challenges, Jain mentioned that attracting deposits is difficult due to alternative investment options like mutual funds and government securities that offer returns. He acknowledged the difficulty in obtaining low-cost deposits and noted that the bank has established around 100 resource acquisition centres to attract business from individual and institutional clients.

Regarding the Reserve Bank of India's draft guidelines on the Liquidity Coverage Ratio (LCR), Jain indicated that the bank's LCR would be impacted by 5 per cent on its current ratio of 120 per cent. The draft guidelines suggest that banks should maintain a higher stock of liquid securities as a buffer for deposits due to the risks associated with increased use of technology for fund transfers.

Additionally, Indian Bank aims to recover Rs 70 billion during the current fiscal year FY25.

Indian Bank's Managing Director and CEO, S L Jain, announced that the bank has a corporate loan pipeline amounting to Rs 400 billion for the fiscal year FY25. The loans are distributed across various sectors, including iron and steel, road infrastructure, non-banking financial companies (NBFCs), renewable energy, and city gas distribution. During a press briefing, Jain revealed that approximately Rs 190 billion of the Rs 400 billion pipeline remains undisbursed in terms of working capital. Jain elaborated that in addition to major corporate sectors such as road infrastructure, NBFCs, renewable energy, smart metering, and city gas distribution, the bank has also ventured into the metal sector. Corporate lending represents 38 per cent of the bank?s total loan portfolio, with the remaining portion allocated to retail, agriculture, and MSME (RAM) sectors. The bank?s total corporate outstanding loans are Rs 1.9 trillion, and the corporate collection efficiency stands at 99 per cent. When asked about deposit challenges, Jain mentioned that attracting deposits is difficult due to alternative investment options like mutual funds and government securities that offer returns. He acknowledged the difficulty in obtaining low-cost deposits and noted that the bank has established around 100 resource acquisition centres to attract business from individual and institutional clients. Regarding the Reserve Bank of India's draft guidelines on the Liquidity Coverage Ratio (LCR), Jain indicated that the bank's LCR would be impacted by 5 per cent on its current ratio of 120 per cent. The draft guidelines suggest that banks should maintain a higher stock of liquid securities as a buffer for deposits due to the risks associated with increased use of technology for fund transfers. Additionally, Indian Bank aims to recover Rs 70 billion during the current fiscal year FY25.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code