INDIAN BANK (NSE: INDIANB) Q3 2026 Earnings Call dated Jan. 22, 2026
Corporate Participants:
Unidentified Speaker
Binod Kumar — MD & CEO
Ashutosh Choudhury — Executive Director
Analysts:
Unidentified Participant
Anand Dama — Analyst
Ashok Ajmera — Analyst
Parth Gupta — Analyst
Jai Prakash Mundhra — Analyst
Sushil Choksey — Analyst
Presentation:
Anand Dama — Analyst
Sir, can we start with the call?
Binod Kumar — MD & CEO
Yes .
Anand Dama — Analyst
Sure. Yeah. Good evening ladies and gentlemen. I welcome you all to Indian Bank’s post results conference call for the third quarter of financial year 2026 hosted by MK Global. From the top management we have with us Sri Binod Kumarji, MD and CEO Shri Ashutosh Chaudhary Executive Director. Shri Shiv Bajrang Singh, Executive Director Shri Brajesh Kumar Singh, executive director and Ms. Mini TM executive director. First I would request the MD sir to briefly summarize the key highlights from the Q3 FY26 results and also provide some strategic direction on growth, margins and asset quality. Post which we have the Q and A session.
Over to you MD Sir.
Binod Kumar — MD & CEO
Good evening all. Thank you Anandji for hosting and all the participants for joining. We have just published our result and total business of the bank has grew by 13.34%. 14.30 trillion. Deposit reached 7.91 trillion with a yova growth of 12.62%. CASA also with a growth of 9.86% reached to 2.96 trillion. Advances also one thing I will highlight. My bulk has remained at the same level whatever it was. In the September overseas Advances grew by 14.24% and reached 6.39 trillion. Corporate grew by 8.16% and reached across 2 trillion 2.01. Ram grew by 16.65% and reached 3.90 trillion.
Retail grew by 18.54% and reached 1.36 trillion. Agriculture also grew by 15.14% and reached 1.49 trillion. MSME grew by 16.41% and reached 1.05 trillion. My CD ratio is 80.77%. Coming to P&L, net profit grew by 7.33% and reached 3,000:2061. Operating profit also grew by VIO by 3.87 5.79% and sequentially 3.87% and reached 5,024. First time we have crossed operating profit of 5,000 crore. Net income. Net interest income. YOY growth is we have seen 5. 7.5% and QoQ 5.27% and reached 6,896 NIM domestic it has improved from 3 point sequentially from 3.34 to 3.40. ROA also.
I mean there is marginal decline from 1.32 to 1.30. But that is well above the guidance. Whatever we have given of 1.20 1.32 is the for the nine month ROA provision coverage provision coverage ratio is at 98.28% cost to income ratio of 46.90 credit cost 0.21 capital we are well capitalized 16.5 to 58%. 2000 of tier 1 bond has retired but we have not gone for raising fresh tier 1 because we are still well capitalized. CET1 14 is 14.54%. Gross NPA has come down to 2.23% and net NPA 0.15%. Press slippage during the quarter has been 997 and recovery is 1453 recovery.
If I talk of the nine month recovery, nine month recovery is 5000 approximately 5205 to be precise 5153 against a guidance of 6 between 5500 to 6500. So we are on track of that slippage Ratio has come down from 0.79 to 0.69 which is within the guidance. Slippage in absolute number is also only 997. SMA SMA it has come down substantially. There is substantial improve in SMA from 11.88% it has come down to 5.05% SMA2 on top of it it seems that like it has gone up from 632 to 3689. But there are two PSU accounts which keep on oscillating between the SMA from at times it is in SMA 10 or 1 or 2.
So because of that if we take that number SMA 2 is also very much under control. My loan I mean MCLR linked loan book is 46.07% and out of that repricing in this quarter is also due of around 37% next quarter also on which because wherever quarterly reset or half early reset is there that reset so that is 20 deposit also repricing is due 18 in this quarter and 53% in next quarter. Many initiatives we have taken for CASA CASA like salary account as I have been discussing in previous quarters also we are focusing great hugely on CASA salary account also and this quarter we have provided fintech solution to around 22 different state government departments.
We have added non SNA account of more than thousand account and average balance in saving fund accounts has gone up from 2000 to 26,000 to 36,000. Similarly average balance in current account has also gone up from 2.12 to 2.44 lakh and we have launched five new products in July. So in that product we have opened five more than five lakh account and we have garnered business of 1500 crore in that account opening. Account opening also we are seeing good traction. Whatever we could have opened last year we have surpassed that in nine months itself saving fund also current account also and sanction also sanction Whatever we could have sanctioned in the Last entire financial year 2.
2.62 trillion so far in this nine month we have already sanctioned 2.95 lakh crore. And we are also focusing on non fund business. And that’s why there is improvement in the. If you see processing charges and LCBG commission there is improvement. We have seen in our traction AUC recovery. We have guidance given guidance of 2000 we have already reached that figure 2000 we have already reached NCLT recovery. One good account, one chunky account has been recovered during this quarter in that around 300 crore recovery has come. So recovery through NCLT is 338 crore. We are digital on digital front we are investing hugely and going forward I expect expect that benefit of that will has already started be accruing but not to the extent we desire.
So we are taking various measures for increasing our digital adoption so that benefit of that may come to us. Now I will request my colleague Mr. Asosh Chowdhury to discuss about the digital products and and thereafter we can proceed with and last point we have a good pipeline of around 50,000 in the corporate credit. Over to Ashutosh.
Ashutosh Choudhury — Executive Director
Good evening all. The bank’s digital business Footprint is at 1.98 lakh crore for Q3. Nine month ended FY26. That is a growth of 66% year on year and cumulative digital business has crossed 4.52 lakh crore. So our fintech partnership has gone up to 169. The digital transaction has grown by 12.54 crore. We have won 47 digital journeys now and the mobile app rating is 4.4. Like the digital transaction is 94% and the branch transaction is 6%. In the digital banking the mobile bank user and the transaction has grown 21% and 14% respectively. YoY the UPI users and transaction has increased by 21% and 28% YoYo so the users of Internet banking has grown by 5% and the debit card has grown by 7%.
So our mobile banking app has two features. One is for retail and one is for MSME. In the retail we have total number of 2.25 crore customers and having a financial transaction value of 50,000 plus crore during this quarter. The best part is that our MSME app which is launched last financial year in February 25 has a customer base of around 25,000 customers and the platform has a login of 2.42 lakh. And the transaction value, their financial transaction value is 14,000 plus crore. During this Q3 so the digital business against a target of 2.25,000 crore we have already achieved one 98,350 crore till nine month ended and we are pretty sure to surpass this particular target.
If you see the digital adoption, it has consistently increased year on year. The liability has increased from 37% to 43%. The retail asset has increased from 74 to 92% agree from 83% to 96%. MSME is from 86 to 94%. We have launched 10 new MSME journeys so that is yet to pick up. That is why the overall is showing a 73%. The EVG issuance has grown from 4% to 27%. So last quarter we launched a separate set of NIST customers I.e. virtual banking experience customers. In a single quarter we have reclassified 6.33 lakhs of customer into that segment.
Then with RBI ULI also we have sanctioned more than a lakh of loans amounting to 12,000 plus crore crore against a target of 9,000 crore. We have implemented 13 initiatives in the last quarter and the same kind of pipeline is there with us in the future. Also if you see the for the customer engagement we have launched a virtual atm. We have launched a lot of things but I’m only concentrating on virtual ATMs where we have through an aggregator we have tied up with 6 lakh plus merchants where the cash can be withdrawn. So we have also introduced the new fast system during Q3 and there are some ongoing project the CRM project two modules we have launched another three modules we are going to launch soon.
So employee assist it’s a new concept that we have introduced in our bank for our own employees to assist them about the process guidelines of the bank and banking industry. And there are we are also started using agentic AI and some of the use cases are in customer onboarding corporate ecosystem then lead nurturing and management personal finance management segment then grievance redesal system and tracking suspicious transactions. So these are the use cases where we are going to use and you are using also if you see in the operational efficiency parameters we have migrated to cloud for our optimum utilization of hardware then we are going for data Lake project and some of the process we are planning for robotic process automations.
So for well we are going very fast on digital and also swiftly moving towards our intelligent banking system. We have also we are planning to establish a resilience operation center in the near future. With that sir, the digital part is over. Thank you.
Binod Kumar — MD & CEO
Only before coming to QA and only one thing I will add. Last quarter I have made provision of 5% on SMA1. This quarter I have increased it up to 10%. So additional 380 crore provision we have made on SMA SMA1.
Questions and Answers:
Anand Dama
Sure sir. We will now open the floor for Q and A session. Anybody who wishes to ask a question shall raise their hands. I request a participant to limit their questions to two per participants. And for further questions please join back the queue. So any participant if you have a question please use the raise hand option. Yeah. We have first question coming from Ajmeraji. Ajmeraji, please unmute yourself.
Ashok Ajmera
Yeah. Thank you Anand for giving the opportunity first as usual. And compliments to you sir for the fantastic quarter. I think you not only according to me not only surpass the operating profit, the ISR operating part but even the net profit also. I think post tax provision also is the highest as I see in 8, 10 quarters. So it is probably maybe the highest ever even net profit also. So my compliments to you and the entire team of Indian Bank. Even on other parameters also you perform very well. Your asset quality also has improved and your net NPA now has gone to 0.15 15 basis point.
So below that there is hardly any scope for getting it down. So the provision may be not be required so much. But having said that sir, my first question is on the basically on the ECL that the provisioning will continuously still will be required to be made. And you said that you have made the additional provision on SMA1 even in this quarter also 380 crores and some other floating provisions. So where do we stand as far as the our preparations for the ECL implementation which is coming soon is there and how much I mean are you going to absorb everything before the April 2027 or you are going to take the benefit of those extended period allowed or permitted?
Binod Kumar
See we have assessed ECL requirement on various permutation in combination. So not giving that number because that will not make sense. Because we have also I mean that draft guidelines was open for discussion and for comments. So we have sent some comments to RBI and expect. I mean don’t know. But let us see what comes finally in the guidelines. So based on that. But as far as my preparedness is concerned my endeavor will not definitely to take five years. So first year itself we will. Whatever we have to do we will do. Quarter wise we’ll see.
Let us see how many quarters that will take. So. But definitely not more than one year. So that much I can tell you. And this philosophy will continue that wherever we can make some provision so that the quarter we shift to ECL impact is minimum.
Ashok Ajmera
Sir, in your initial remark you had covered some I think SMA2. But as I see the total overall number of SMA2 of this quarter is 4309 crores. As against the last quarter of 1448 crores. So I. I just couldn’t hear properly. I mean what is the explanation? You said you are comfortable on that.
Binod Kumar
Yeah. Yeah. There are two. Two PSU accounts where state government guarantee is available. So last quarter that was in SMA0. This quarter it has come to SMA2. So I mean chances of slipping these account are. I mean very less.
Ashok Ajmera
How much is that quantum of these two state government accounts?
Binod Kumar
3,000.
Ashok Ajmera
Okay. So basically we are only 1309. If you remove those state government accounts and there is no chance of slipping them in npa isn’t it f or that? Sir, this. As far as the overall business growth is concerned. Of course on annualized basis still we are at comfortable this thing. But if you see the nine months numbers on credit growth we are 8.62%. And on the deposit side we are 7.29%. So you have a strong pipeline you said. But at the same time you know on the capital adequacy wise we are at almost. I mean nowadays whatever the normal CRAR is there of the banks we are at the little lower side of say 16.58% of the CRAR. So considering. And CD ratio is 80.77.
So considering all this whether you will reach the target, you will surpass the target given and whether your pipeline and the other adequacy is available that you reach the target or cross that on the. Especially on the advances front.
Binod Kumar
Yeah. Whatever guidance we have given will surpass that. There is no doubt in that. Because see even in this quarter I have sold IBPC of 7000 crore. Yeah. Not sold. That will add to my growth only.
Ashok Ajmera
No, no that is there. But I mean where. Where is it coming from? Like your. Your corporate. I think you said 50000 crore.
Binod Kumar
Pipeline is there. Yeah. Ram, we are seeing good. Seeing good growth. Retail also if you see we have grown by 18 MSME also we are seeing good growth of 16%. Agriculture also 15. So good growth is coming through Ram sector And in few sector in corporate also we are seeing good demand like your green finance. There are various subsets of green finance like ev solar panel manufacturing, solar solar power plant itself so few sectors we are seeing good demand. And then one logistics sector is also coming up. So lot many proposals we are getting for the warehouse development.
So we are seeing. Good. Yeah.
Ashok Ajmera
The last question in this round sir, on the treasury front I think we are doing reasonably well. So what is the going forward in this remaining quarter of the FY26? Where do we stand as far as our treasury performance is concerned?
Binod Kumar
See treasury we should be able to maintain. I mean although if you see yield has hardened as compared to the last quarter. But still we have generated profit of around including forex around 500 crore. So treasury next quarter I am expecting somewhere around 350. So there will be. I am expecting some moderation in the treasury incomes around 350. I am expecting that.
Ashok Ajmera
Okay, so this will little bit.
Binod Kumar
But. But if you see Q2. Q2 also was only 330.
Ashok Ajmera
Yeah. But in this quarter it was even investment. If you see in the other income also it is 342 crores treasury. So I mean the estimate of 350 overall looks.
Binod Kumar
Y es, yes.
Ashok Ajmera
A little conservative. And then impact of this new labor code also will come sir, now I think so. There also the gratuity and the leave engagement. I mean all those factors are there. Has that been assessed for the calculating the profitability?
Binod Kumar
Yeah, I assessed. We have impact of only 56 lakhs. To be precise 55.86.
Ashok Ajmera
Thank you very much sir. And thank you Anand for giving me so much of time.
Binod Kumar
Thank you.
Anand Dama
Thank you again. Sure, sure. Next question will take from Kayuri. Kayuri, please unmute yourself.
Unidentified Participant
Hi. I just wanted to know whether the asset quality and loan growth will incrementally improve by qualifold finance.
Anand Dama
So were you able to listen to the question?
Binod Kumar
No. I mean her voice was breaking.
Unidentified Participant
So I just wanted to know whether the asset quality and the loan growth will incrementally improve for 2026.
Anand Dama
I think she’s asking whether the. She’s asking whether the asset quality and loan growth will improve from here on.
Binod Kumar
Got it. So. So asset quality we are already at very good level. Gross NPA 2.21. Net NPA 0.15. So what improvement? I mean we will maintain that. I have already given guidance of less than 2. We’ll maintain that net NPA 0.5 F we can do 0. But then after 0, what to do so we will maintain that and expecting a slippage ratio. I may also expecting that this level of slippage ratio will continue. Only aberration remains March in March because branches where people go for audit to the branches at that time some MOC is being passed by them.
So to that extent there will be some impact on the asset quality. But after that it remains std. Credit growth. Credit growth. I am hopeful that CC credit growth is also a function of the how economy is doing. If you see most of the estimates for credit growth is also coming around this calendar year. Also next calendar year also they are giving good guidance of between 6.5 to 7%. So my expectation is even next year credit growth, whatever we are doing, we are maintaining we will be able to sustain that.
Anand Dama
Sir, in that context, you know how do you expect the deposit to pan out? Right now we have scope to improve the LDR but. But deposit growth in the system certainly remains a challenge. So what is that you think like you know how deposits will mobilize, how CASA is going to come through and whether that’s going to be a challenge for you?
Binod Kumar
Yeah, see I am part of the industry so I cannot be aloof of them. So impact of that will come definitely on us. And already if you see after December already bulk rate has gone up by 2030 basis point mind because credit growth is good, deposit is not coming. And casa. Casa what I am feeling, CASA is a structural change behavior of the people is a structural change and they will shift to other modes of investment. Having said that we are taking so many measures on CASA and we are instead of relying on one or two bulk chunky deposits, we are trying to make it granular so that we can have float volume is there.
Then that’s why if you see a lot of efforts are being put on the technology side. QR code, salary account, cross sell. So because of that we will be able to I mean not increase casa but I mean we’ll be able to maintain or maybe marginal decline going forward. I may be not only in this quarter going forward I am seeing not immediate future, but going forward. I mean maybe may not require next year as a part of a strategy. But going forward. Maybe if deposit is not coming bulk is very high, then we have to see other sources of deposit raising.
Like we may go for some bond etc. So these sources will come into play going forward. So net to net impact will be. There will be some moderation, some impact on the NIM. Ultimately even if we are getting so many facility in the our Saving fund product or credit card. So ultimately these are adding to our cost only. So it is. It will happen. But it will happen gradually. It should not. It’s like overnight it will drastically change.
Anand Dama
Sure sir, sure. Next question we’ll take from Parth Gutka. Part please unmute yourself. And any other participants you have questions, please use the razor option now. Part please unmute yourself.
Parth Gupta
Yeah. Hi. Thanks. Thanks Anand. So sir, on slide 19, you know within the OPEX line items the insurance cost has gone up material during this quarter. Any specific reason for the same.
Binod Kumar
Yeah, yeah. Dic dicgc they have changed some formula. I mean a few accounts for which they were not asking earlier the premium they have added these accounts and they have also asked for the for ester years. So it DICGC cost itself has gone up by 128crore. Out of that 82.82crore relates to previous years remaining relate to this quarter which will also be going forward. That will continue around 60 crore increase in DICGC premium will continue.
Parth Gupta
Okay sir, thanks. And my second question is within the again within the opec within the employees benefit that line item has also gone up. You know as in the increase in the line item is much more than the overall opex cr. Anything to highlight there sir.
Binod Kumar
OAS 15 we have made. If you see last quarter from last quarter it has gone up by 102 crore. So that is based on the. Purely. Based on the actual valuation.
Parth Gupta
Okay sir, thanks. Thanks a lot.
Anand Dama
Next question we’ll take from Daril. Dar, please unmute yourself.
Unidentified Participant
Hello. Good evening sir. Thank you so much for taking my question. Hopefully I’m audible.
Binod Kumar
Yeah. Audible.
Unidentified Participant
Yeah. Hi sir. So sir, we’ve previously given you know, guidance in regards to NIM and you know roa. But we are already outperforming that guidance, you know. So are we. You can we. Is there a positive upgrade that you know you would like to issue? Because I think we were saying around 3.1 to 3.3 in NIMS and we already at 3.45. And similarly ROA is also, you know we are performing much better than what we’ve guided. So you know maybe for next year. And this year are we you know, upping the guidance?
Binod Kumar
I mean this year even if I don’t don’t upgrade already. I. I think we will surpass that both NIM and roa ROU also I expect for the year also it should remain around 1.3. It should remain because in nine months it is 1.32. But this quarter may be 1 or 2 basis point ROA impact negative. Sorry Nim. Negative impact may come because MCLR book is repricing around 37% in this quarter including three months, six month all out of that one year MCLR is around 19% is repricing and impact of 25 basis rate cut two month will come in this quarter.
So there may be some impact out of that. Part of that will be offset by deposit repricing which is 18% in this quarter. So maybe one or two basis point, maybe it may go down in this quarter.
Unidentified Participant
Okay, okay. But answer for FY27. So we can, you know, have the same levels or higher than this also like can we try to.
Binod Kumar
Let us see. Because see as I told after December already bulk rate has gone up by 2030 basis point. So let us see how this quarter pans pan also pan out. Then it will be better to give guidance for the next quarter. I mean next financial year.
Unidentified Participant
Okay, okay, okay. Fair. Fair enough sir. And sir, just wanted to understand like when you say that you know, there is, you know, some, you know, cost of funds is increasing for you. So structurally what you feel that, you know there’ll be more intensity like there’ll be pricing issues like from other banks also that will push this, you know, cost of funds higher. Or how do we see that? Because our reach and you know, network is there. We’ll be kind of, you know, shielded from that. How do you see that intensity, sir?
Binod Kumar
No, no, definitely see if because around 18% of my deposit is through bulk. Even if you see against a rate cut of 125 basis point, even term deposit rate cut has been around only 60, 70 basis point. So impact will come. We will also be impacted. If bulk rate goes up, then definitely we will also be impacted. Cost of fund will go up.
Unidentified Participant
Okay, okay, okay. So we can for next year maybe we can expect some cost of funds going up.
Binod Kumar
We will see because see many things come into play. So some strategy also evolve. We are also working very, I mean on how to at least maintain CASA share so many things we are working. So let us see. But I mean that will purely be the function of how deposit, I mean term deposit and this comes out term deposit and bulk deposit rate. How it comes out.
Unidentified Participant
Okay, okay, fair. And the last question from my like credit cost, what do we expect sir, going forward like for this year and next year, sir, .
Binod Kumar
Credit cost will maintain this level? I think we will be able to maintain. Although I have given guidance of less than 1. But I think at least next quarter I will be able to maintain this around 20. 20. Maybe little bit it may go up because as I told in last quarter through some MOC, some slippages increases. So maybe little bit 12 basis point here or there.
Unidentified Participant
Okay. Okay. Fair enough. So that’s it from my side. Thank you so much sir.
Anand Dama
Thank you. Next question we’ll take from Jay Mundra. Jay, please unmute yourself.
Jai Prakash Mundhra
Hello. Yeah, hi. Good evening sir, a couple of questions. Yeah. Sir, first is this IBPC transaction that we have done. Sorry I missed the amount. What was the amount?
Binod Kumar
This quarter we have done 7,000.
Jai Prakash Mundhra
Okay. So sir, this 7,000 crore you have sold. But you could have received some nii, right? Is there any positive. I mean there will be some positive impact on Nim quantifies her if. If possible. I mean how much you would have earned without being in a denominator thing.
Binod Kumar
240 crore percentage term. 240 crore. Absolute number.
Unidentified Speaker
So 3%. 3.25% for annual. So half yearly. It was half yearly. So 1.87% roughly on 7,000 that would be roughly 8.6 to 8. Roughly 8.1.6% on that.
Binod Kumar
So percentage you can calculate around say differential you can say around. You can take 2%. So on 7,002% means around 140.
Jai Prakash Mundhra
Right. So 140 is the additional interest earned on this.
Binod Kumar
Not interest on interest saved.
Jai Prakash Mundhra
Correct. Saved. Right. And there is no implication on the fee or other income, right?
Binod Kumar
No, no, no. No implication.
Jai Prakash Mundhra
Okay, sure. Then secondly sir, I was under the impression that you know some of the. Let us say you are mid sized to small size bank and there is a lot of news flow about M and A merger. So other smaller banks they are showing much faster growth. Right. To maybe to avoid any likely M and A. Right. And at the same time you are actually shedding 7,000 crore in this quarter and last quarter you also shed. So I was thinking that maybe you will show more base vs you are actually keeping yourself lean.
Binod Kumar
That that decision of amalgamation will not depend on the 1/4 growth. So that will get of of course depend on long term viability.
Jai Prakash Mundhra
Okay, sure. Secondly sir, if you can specify the total SMA. Now you have 10 provision on both SMA as well as SMA 2. And if you can specify sir what is the absolute amount of SMA1 and SMA2 and SMA0 if possible.
Binod Kumar
Yes. SMA0. Total SMA book is 3148 8. Out of that SMA0 is 12,000. SMA1 is 8,000. SMA2 is 10. Almost 11,000 okay. So 11,000, 8,000, 19,000. 10%.
Jai Prakash Mundhra
Right. Right. Okay. And sir, on ECL number. So assuming I mean do you intend. Do you have a number in mind which you want to reach or now you have 10 on both SMA 1, 2. You are. You are there?
Binod Kumar
No, no, not there. Of course. Because see that guidelines say simply one guidelines. They are saying LGD of 65. That itself is huge. Demand will regenerate. Then they are saying on restructure they said all 100 PD. So huge amount will be required. So many things. Let us see how it pans out. But yes of course I will be. I will working on to minimize the impact going forward as far as possible in the first quarter itself or in the second quarter so that we can absorb all these.
Jai Prakash Mundhra
Correct. Correct. So sir, what would be your assessment? Let’s say you have around 101900 crore. The standard assets provisioning. Where do you want to reach? I mean would it be like 5,000, 10,000. How much will be that amount?
Binod Kumar
See I don’t have. I mean you cannot reach unless you have a profit. So I have to worry of the ROA also. I have to see other parameters also. But any surplus whatever we are going to getting, maintaining ROA etc we will try to give Kushan to the balance sheet. Not any specific number in mind.
Jai Prakash Mundhra
Okay. So other banks have given like 1% of RWA number. So that is why I was just trying to benchmark. So let’s say your ROA number. I mean your RWA number would be around 4 lakh crore. Other banks have said around 1% of RWA.
Binod Kumar
That’s that I’m telling you scenario. Right. Say if they. If they are accepting to the request of the banks that restructured asset not 100%. They still may accept 50%. There will be huge impact. Right. They accept to the request of say LGD from 65 to 60. There will be huge impact. So I mean the banks we are giving their best case scenario. There is worst case scenario. So though who is talking what we don’t know.
Jai Prakash Mundhra
Okay, sure, sure. Sure.
Anand Dama
Jay, please fall back in the queue.
Jai Prakash Mundhra
Sure. Okay. Thank you. Thanks a lot. Sir.
Anand Dama
Next question we’ll take from Antrik Shantariksha. Please unmute yourself.
Unidentified Participant
Yeah, I’m audible.
Anand Dama
Yeah, yeah, yeah.
Unidentified Participant
Good evening sir. So just two questions. One is in the jewel loan or gold loan portfolio. Can you tell us what is the incremental LTV that you’re doing business in? Both in retail and in agri.
Binod Kumar
Somewhere around 65% on fresh load LTV mic on, in mic you can also tell.
Unidentified Speaker
Sir, in agriculture we are having 70% sir. Now as of now and other retail and Ms. Semi we are, it is ranging from 65 to 70.
Binod Kumar
But, but we have done, we have done one, one thing. We are pricing, taking price of the gold on the moving average.
Unidentified Participant
Okay, so it’s one month, three month moving average.
Binod Kumar
Something like that is last 30 days or last day, whichever is less we are taking.
Unidentified Participant
Okay, okay, sure. And the second thing is sir, you mentioned about bulk deposit trades going up incrementally. I’m assuming these would most likely be about 3 months 6 month tenure right.
Binod Kumar
Up to 1 year also. Across all buckets.
Unidentified Participant
So if you just do a blended duration, what would be the incremental bulk rate today? I mean if you were to do fresh borrowings, be it six months money or whatever, it is.
Binod Kumar
Not less than 670, 680.
Unidentified Participant
So then I was thinking if, if your incremental borrowing borrowing of short tenor loans is at 670, 680 and there are some loans which your total yield on book today is about 8.1. And so fresh yield I’m sure would be less than that. There is a spread of 100 and 125 basis points on incremental basis for some loans if you take the most expensive source of liability and the most cheapest cost of assets. So if you load your costs and some credit cost on that incremental basis paid, there are some loans which are hardly making roa.
Binod Kumar
That, that is the reason if you see our corporate, corporate we are, I mean very careful in giving the rates.
Unidentified Participant
But if, if that is the case with you, it should be true for the whole system, right?
Binod Kumar
So yeah, it’s true for the whole system.
Unidentified Participant
Why is pricing still so low is.
Binod Kumar
My question that see everybody pursue their different strategies. Somebody pursue aggressive growth. Somebody’s thinks about the, I mean moderate growth. Somebody thinks about bottom line. So depends on the strategy of the person. I can say. B ulk if you see for, for us Bulk is around only 18 of the total deposit.
Unidentified Participant
Yes, yes, you mentioned that. Correct. And that number should be going down, right? Because the rates are high.
Binod Kumar
Going down. I mean depends going down, going up. Cannot say that will depend on the market situation. But endeavor, endeavor will be to get it done or maintain at this level.
Unidentified Participant
Okay. Thank you sir.
Anand Dama
Thank you. Antarct. Next question we’ll take from Ajmeraji.
Ashok Ajmera
Yes sir. Sir, my one question was on. It’s a. Basically a general question but it is impacting everyone today that what is going geopolitically in the world. The kind of disturbances and the of course started with Trump tariff and now so many things are happening and it is affecting various businesses at various levels. So first, first thing is that have we have we made any assessment of a kind that you know all these sanctions and so many turbulences and the tariffs and other things whether our if we look at our customer profile, even a smaller businessman msmes or this thing that is there any sizable impact going to be anywhere and are we prepared for that?
Binod Kumar
So I will say reply you you in two parts. First of all what will be the impact on growth because of the geopolitical tensions this year Also a lot of geopolitical tensions are there but still our economy is doing good. So I expect our economy also. And if you see most of the external agencies are saying that Indian economy will be the fastest growing economy and will grow in the range of 6.5 to 7%. So don’t see any challenge on the growth part. Number one, if you don’t say any challenge on the growth part I think impact on I mean asset quality should also be not huge.
Next question any particular impact to the tariff tariffs? We have assessment we are not seeing much impact. Our total export business is very minuscule. I mean I have exact number but it is so small that I don’t want to tell you. And within, within that Also exposure to US is only 4 to 5% so I am not seeing any much of the impact of that.
Ashok Ajmera
Okay, that’s good to know. Answer one last this thing on gold loan portfolio and in that also the bifurcation between the gold agree loans and non agri loans and what kind of yield are we having on the gold loans of the both agree and non agree. And in our growth plan are we aggressively pushing gold loans and similarly our NBFC funding through the NBFC or NBFC funding whether the I mean you you call it as a co lending or a direct lending and what is the picture there and are we I mean similarly bullish on that also?
Binod Kumar
No. Yes. See gold loan is a very safe type of loan. Only thing only risk we carry is the some fraud happens. So we have put in various measures to avoid fraud and since we were traditionally doing so our system are robust so don’t see much of the challenge on that. A yield we are getting good yield. You can tell 8.7. Yield we are 8.70 we are getting approximately.
Ashok Ajmera
That is overall or non-agri?
Binod Kumar
Ooverall.
Ashok Ajmera
Okay good. I Mean it’s a reasonably good yield. Yes sir.
Anand Dama
Yeah, thank you sir. I think we’ll have to move to next question.
Ashok Ajmera
No, no, no problem. No problem. Thank you for even giving this much opportunity. Can always speak to sir if.
Anand Dama
Sure, sure. Sure sir. Next question. We’ll take from Dhil Dil. Please unmute yourself. Hello.
Unidentified Participant
Yeah, hi. Sorry. All my questions are answered. Just one question from my last question from my. So in terms of credit growth when we are trying to you know reach you know double digit 10 to 12%. Is there, you know, are we looking that you know maybe next year with you know good GDP numbers expected and good growth happening. Can we you know aim for a higher you know maybe mid teens level of growth? Is that or maybe just you know, 15% or something like is there you know any type of plan being formulated to reach that growth or are we you know, you know willing to just have around, you know top line growth of 10, 12%.
Binod Kumar
So I think 12, 13% growth is good. DIL. 12, 13%. Because see if you pursue very aggressive growth. No. Then you will start asking why your NPA is going up. So because of that reason we are pursuing very. I mean growth so that our NPA should not go up. I more remain more worried about that. I Risk should not build up. See because risk is always, always built up in the good time. So I always remain careful of that.
Unidentified Participant
Oh, okay. Okay. Fair enough. Yeah, that’s it. From my side. Thank you.
Anand Dama
Sure. Last question will take from social. Choksiji. Sir, Keep your question limited answer before I think when Ajmera sir was asking one question which came in a chat box was that have you been done or basically extended any moratorium to the MSMEs? And if. Yes, what’s a quantum.
Binod Kumar
Msmes? You mean to. Because of the.
Anand Dama
The export rate disruption which has come. Yeah. Yeah.
Binod Kumar
So so far we have not extended.
Anand Dama
Okay. Sure. Yeah. Sushilji, you can unmute yourself and ask your question.
Sushil Choksey
Congratulation to team Indian bank for excellent performance and market is also rewarding. If I did 1224 month outlook, what would be a balance between RAM and corporate Book any board policy or direction.
Binod Kumar
We will like to maintain same ratio.
Sushil Choksey
65, 35.
Binod Kumar
Because see. Yeah. I mean yes. 65, 35. Reason I am telling you because see as a responsible banking we also need to participate in the building up of the country. And if you don’t do corporate then banks know, don’t do then who will do? I mean infrastructure lending we have to do so as a part of a strategy. We like to maintain between this 65 35.
Sushil Choksey
Second thing sir you have you when you are working so efficiently on RAM on the digital stack you have announced many products you have launched and spent a lot of money. What is likely capex for next 1224 months to be more efficient, more connected system. You are tapping salary account host to a system many other system supply chain. What kind of spend will we do to garner a bigger pie from the existing wallet?
Binod Kumar
Around 2000 crore per annum. Including. Including both capex and opex. Because majority of it expenditure is also coming in the shape of opex.
Sushil Choksey
Sir, it’s a hypothetical question. Let’s assume that our book value next year is 600 rupees. And if your stock is trading at nearing 1.82 times book value will you dilute equity or equity is not required at all?
Binod Kumar
No, no. Otherwise equity is not required at all. But if. That’s why I have. If you see even this year I have kept approval from the board for pip up to 5,000 crore. If you get opportunity we can of course but as a part of. I mean we don’t need. As of now already at 16.58% so in March it will cross 18. So we will not.
Sushil Choksey
You may not need equity but the market is.
Binod Kumar
Yes, yes. I don’t. I may not need.
Sushil Choksey
You may not need. But if market rewards you are willing to dilute.
Binod Kumar
That’s why that. That. That. That’s why. That’s why enabling clause. That’s why I have kept. Which I will like to keep next year also if some good opportunity is coming we can. I mean get good rate. Why not?
Sushil Choksey
So anyway on international book it seems that lot of opportunities are coming from Indian promoters Specifically where you in the geography we are present. What is the outlook on that segment? Specifically on financing entities which are pan India but growing overseas people are shifting from Bangladesh to Sri Lanka for textile auto ancillary is also repositioning some of the location you already said EV you are doing battery management led to solar. And other things are coming. So what kind of a situation we are in where these kind of pipelines are concerned?
Binod Kumar
No this type of pipeline good number of people. If you see I give you just one number. My growth in green finance itself is around 60%. So we have good pipeline of that also and we are open to get any opportunity. If only thing I remain cautious only one thing always in green finance. I mean good name we will do because many new players are coming. I don’t want to take that risk and that they don’t have Much expertise and they ultimately end up in trouble and bring bank also into trouble. So good names, good background.
Good proven history. We are doing and we remain open to that.
Sushil Choksey
So your team will not create negative impact. That animal very assured of. Sir, out of 50,000 crore corporate book which you indicated how much would be manufacturing?
Binod Kumar
Manufacturing.
Sushil Choksey
Pipeline.
Binod Kumar
It’s a pipeline of manufacturing. Yeah. That I will give you Sushilji. I will note down. You give him.
Sushil Choksey
No problem sir.
Anand Dama
Sir, I think in the interest of time we’ll have to take that as a last question.
Sushil Choksey
Thank you. And all the best sir.
Anand Dama
Thank you. With this we come to the end of the Indian Bank’s post results conference call of 3Q FY26. I now request the management to give their closing remarks.
Binod Kumar
I think we have already discussed so many things and very relevant questions had come. But we have taken few initial 1, 2. Two things I would like to discuss as a concluding remark. We are investing usually in it and benefit of that is accruing. But not to the extent I desire. So lot of initiative we are taking how we can digitally onboard our customers. Lot of efforts is going on that we are seeing good traction also and good benefit also. We are seeing like my target is say my total business, Digital business is 15%. I want to make it take it up to 50% in next two to three years.
December if January. I have internally set a target that we will double the business figure in five years. December last December. So from 12. That means more than 25 lakh crore by 12-30-29th. We are on track of that also we have plan of using AI in various. I mean sector of various segment of the banking. And we. We are already in discussion or in at some stage. Use of AI in current opening cross sell module. Use of AI in cross sell module Personal finance management. Automatic grievance redressal mechanism then suspicious transaction reporting. So these are the few sectors we are working on where we can use AI and be more proactive other than reactive.
And we will continue focusing on RAM and casa. As I mean as I told my half of the time goes on casa. So if. If. But. But that is worth investing. That time is worth investing. If I can maintain this percentage of CASA that will be worth investing. So with that I mean whatever guidance we have given we. We are on track in most of the parameters. Thank you.
Anand Dama
Sure sir. Thank you. So yeah. On behalf of MK and the management of Indian Bank I thank all the participants for joining. Happy evening and good day.
Ashok Ajmera
On behalf of all the participants I thank the management and to you also, thank you.
Binod Kumar
I also thank all the participants for sparing their time and joining the conference. Thank you. Good evening.
Ashok Ajmera
Thank you.