Indian Bank Aims to Surpass Rs 1 Lakh Crore in Digital Transactions

Indian Bank has set an ambitious target to exceed Rs 1 lakh crore in business transactions through digital channels, according to Managing Director and CEO Shanti Lal Jain. The city-headquartered bank achieved Rs 81,000 crore in digital transactions last fiscal year, reflecting a significant growth trajectory.

Jain revealed that digital transactions rose from 85% in the previous financial year to 89% in FY23-24, marking a 4% increase. The bank’s focus on digital channels aligns with evolving customer preferences and technological advancements.

In financial performance, Indian Bank reported a notable 55% surge in net profit for the January-March 2024 quarter, reaching Rs 2,247 crore compared to Rs 1,447 crore in the previous year.

Looking ahead, Jain expressed confidence in surpassing the Rs 1 lakh crore digital transaction milestone, emphasizing the bank’s commitment to digital innovation and customer service. He clarified that despite the digital push, the bank continues to cater to diverse customer needs through multiple operational modes, including mobile banking, internet banking, website banking, and assisted journeys devoid of paperwork.

Addressing recovery targets, Jain projected a recovery range of Rs 7,000 to Rs 8,000 crore for the current financial year, building on the bank’s successful recovery efforts in the previous year.

On the deposit and credit fronts, Indian Bank achieved robust growth with a year-on-year increase of 11% in total deposits, reaching Rs 6,88,000 crore, and a 13% increase in gross advances to Rs 5,33,773 crore as of March 31, 2024.

Regarding fund raising, Jain assured that the bank is adequately capitalized, boasting a capital adequacy ratio of 16.44%. Discussions with the board are underway to determine future fundraising strategies.

Indian Bank remains committed to sustaining its growth trajectory, targeting an 8-10% growth in deposits and 11-13% growth in credit for the upcoming fiscal year, bolstered by its strategic focus on digital transformation and customer-centric banking services.