Indian Bank

- Board has approved a Qualified Institutional Placement (QIP) of up to Rs 5,000 crore for equity fundraising if good opportunities arise. - Currently, there is no immediate need for equity dilution as the capital adequacy is comfortable (16.58%, expected to cross 18% by March). - On the debt side, bulk deposits comprise around 18% of total deposits. Recent trends show a rise in bulk deposit rates by 20-30 bps post-December due to better credit growth and limited deposit inflows. - The bank is exploring alternative deposit-raising sources like bonds if needed in the future. - Incremental borrowing costs are around 6.70%-6.80%. - The bank remains cautious on growth and risk, focusing on maintaining healthy asset quality.

- The bank plans to spend around Rs 2,000 crore per annum on capex and opex related to enhancing digital efficiency and connectivity. - Investments focus on expanding digital stack, launching new products, improving systems like salary accounts, host-to-host platforms, and supply chain integration. - Approval for QIP (Qualified Institutional Placement) up to Rs 5,000 crore is in place to capitalize on good opportunities if they arise, though equity dilution is not currently needed due to a strong capital adequacy ratio. - Strategic focus remains on cautious growth in green finance with emphasis on clients having good track record and proven expertise. - The bank is also investing in digital initiatives such as virtual ATMs, AI-driven customer service, cloud migration, data projects, and robotic process automation for operational efficiency.

- The bank targets moderate growth of 12%-13% credit growth to avoid increasing NPAs, prioritizing asset quality over aggressive expansion. - Retail, MSME, agriculture, and RAM sectors show strong growth: Retail up 18%, MSME 16%, and agriculture 15%. - Corporate pipeline includes Rs 50,000 crore, with good demand in green finance (EV, solar), logistics, and warehouse development. - Digital business is growing robustly, with digital transactions reaching Rs 1,98,350 crore till December against a target of Rs 2,25,000 crore. - The bank maintains a strategic loan book ratio of 65% Retail Asset and Micro (RAM) to 35% Corporate. - Planned capex and opex for technology upgrades is around Rs 2,000 crore per annum to enhance efficiency and capture a bigger wallet share. - Focus on prudent growth balancing risk, with cautious entry into new opportunities, particularly in green finance.

- The bank expects to surpass its credit growth guidance, indicating robust future business expansion. - Net Interest Margin (NIM) is performing well, currently at 3.45%, above initial guidance of 3.1-3.3%; slight 1-2 bps dip possible due to repricing. - Return on Assets (ROA) is expected to remain around 1.30% for the year, outperforming previous guidance. - Operating profit crossed Rs 5,000 crore for the first time, showing strong earnings momentum. - Treasury income expected to moderate slightly but remain steady (~Rs 350 crore next quarter). - Credit cost guidance is to maintain below 1%, aiding stable profit levels. - Investment in digital infrastructure capped at Rs 2,000 crore annually to support growth and efficiency. - Equity dilution not presently needed, but Board approval for QIP up to Rs 5,000 crore is in place for future opportunities. - Pipeline of Rs 50,000 crore corporate loans signals strong future lending and earnings potential.

- The bank has a good sanctioned pipeline of around Rs 50,000 crore in the corporate credit segment. (Page 6) - Positive growth is seen across RAM (Retail, Agri, MSME) sectors: Retail up 18%, MSME 16%, Agriculture 15%. (Page 6) - Specific corporate sectors showing demand include green finance (EV, solar panel manufacturing, solar power plants) and logistics (warehouse development). (Page 6) - International segment also has a good pipeline, with green finance growing around 60%. The bank is cautious, focusing on clients with good background and proven history. (Page 22) - Digital business target was Rs 2.25 lakh crore, with Rs 1.98 lakh crore already achieved in nine months; the bank expects to surpass the target. (Page 5) - Overall, the bank is confident of surpassing targets given the strong pipeline and focus on multiple sectors. (Pages 6, 22)