INDIAN BANK (NSE: INDIANB) Q3 2026 Earnings Call dated Jan. 22, 2026
Corporate Participants:
Binod Kumar — Managing Director and Chief Executive Officer
Ashutosh Choudhury — Executive Director
Unidentified Speaker
Analysts:
Anand Dama — Analyst
Ashok Ajmera — Analyst
Kayuri — Analyst
Parth Gutka — Analyst
Darshil — Analyst
Unidentified Participant
Jay Mundra — Analyst
Antariksha — Analyst
Sushil Choksey — Analyst
Presentation:
Anand Dama — Analyst
So 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 Emkay Global. From the top management, we have with us Shri Binod Kumar Ji, MD and CEO; Shri Ashutosh Choudhury, Executive Director; Shri Shiv Bajrang Singh, Executive Director; Shri Brajesh Kumar Singh, Executive Director; and Ms. Meeni, TM, Executive Director. First, I would request the MD, sir, to briefly summarize the key highlights from the Q3 FY26 results and also provide strategic direction on growth, margins, and asset quality. Post which, we have the Q&A session.
Over to you, MD, sir.
Binod Kumar — Managing Director and Chief Executive Officer
Good evening, all. Thank you, Anand Ji, 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%, INR14.30 trillion. Deposit reached INR7.91 trillion, with a YoY growth of 12.62%. CASA also, with a growth of 9.86%, reached INR2.96 trillion. Advances also, one thing I will highlight, my bulk has remained at the same level, whatever it was in September. Overseas, advances grew by 14.24% and reached INR6.39 trillion. Corporate grew by 8.16% and reached INR2.01 trillion. RAM grew by 16.65% and reached INR3.90 trillion. Retail grew by 18.54% and reached INR1.36 trillion. Agriculture also grew by 15.14% and reached INR1.49 trillion. MSME grew by 16.41% and reached INR1.05 trillion. My CD ratio is 80.77%.
Coming to P&L, net profit grew by 7.33% and reached 3,061. Operating profit also grew by YoY by 3.79% and sequentially 3.87% and reached 5,024. First time we have crossed operating profit of 5,000 crore. Net interest income YoY growth we have seen 7.5% and QoQ 5.27% and reached 6,896. NIM domestic, it has improved 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 ratio is at 98.28%, cost to income ratio of 46.90%, credit cost 0.21%. Capital, we are well capitalized 16.58%. 2,000 of Tier 1 bond has retired, but we have not gone for raising fresh Tier 1 because we are still well capitalized. CET1 is 14.54%. Gross NPA has come down to 2.23% and net NPA 0.15%.
Fresh slippage during the quarter has been 997 and recovery is 1,453. Recovery, if I talk of the nine-month recovery, nine-month recovery is approximately 5,200, to be precise 5,153, against a guidance of between 5,500 to 6,500. 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, it has come down substantially. There is substantial improvement in SMA from 11.88%. It has come down to 5.05%. SMA2, on top of it, it seems like it has gone up from 632 to 3,689. But there are two PSU accounts which keep on oscillating between SMA from at times it is in SMA10 or 1 or 2. So because of that, if we take that number, SMA2 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, because wherever quarterly reset or half-yearly 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 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-SA accounts of more than 1,000 accounts, and average balance in savings accounts has gone up from INR26,000 to INR36,000. Similarly, average balance in current account has also gone up from INR2.12 lakh to INR2.44 lakh. And we have launched five new products in July.
So in that product, we have opened more than 5 lakh accounts, and we have garnered business of 1,500 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. Savings fund also, current account also, and sanction also, sanction whatever we could have sanctioned in the last entire financial year, 2.62 trillion. So far in this nine months, 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 LC/BG commission, there is improvement we have seen in our traction.
AUC recovery, we have given guidance of 2,000. We have already reached that figure, 2,000 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 on digital front, we are investing hugely and going forward. I expect that benefit of that has already started 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. Ashutosh Choudhury, to discuss about the digital products, 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. Our fintech partnership has gone up to 169. The digital transaction has grown by 12.54 crore. We have 147 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% YOY. The users of internet banking has grown by 5%, and the debit card has grown by 7%. Our mobile banking app has two features. One is for retail, and one is for MSME.
In the retail, we have a 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 has launched last financial year in February 2025, has a customer base of around 25,000 customers, and the platform has a login of 2.42 lakh. And the financial transaction value is 14,000 plus crore during this Q3. So the digital business, against a target of 225,000 crore, we have already achieved 198,350 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%, aggregate 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 at 73%. The e-G issuance has grown from 4% to 27%. So last quarter, we launched a separate set of niche customers. That is virtual banking experience customers. In a single quarter, we have reclassified 6.33 lakhs of customers into that segment. Then with RBI ULI also, we have sanctioned more than a lakh of loans amounting to 12,000-plus 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, 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, tied up with 6 lakh plus merchants where the cash can be withdrawn. So we have also introduced the new fast track system during Q3. And there are some ongoing projects, the CRM project, two models we have launched, another three models 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. Then we have 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 redressal 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 a Data Lake Project, and some of the process we are planning for robotic process automations. So for a while, we are going very fast on digital and also swiftly moving towards our intelligent banking system. We have also planning to establish a resilience operation center in the near future.
With that, sir, the digital part is over. Thank you.
Binod Kumar — Managing Director and Chief Executive Officer
Only before coming to Q&A, 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 INR380 crore provision we have made on SMA1.
Questions and Answers:
Operator
[Operator Instructions] We have first question coming in from Ajmera [Phonetic] ji. Ajmera ji, 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 and combination. So I’m 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, I 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 deflate to take five years. So first year itself, we will whatever we have to do, we will do. Quarter-wise, we will 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 INR4,309 crores as against the last quarter of INR1,448 crores. So I just couldn’t hear properly, I mean, what is the explanation? You said you are comfortable on that.
Binod Kumar
Yeah, there are two PSU accounts where state government guarantee is available. So last quarter, that was in SMA-0. This quarter, it has come to SMA-2. So I mean, chances of slipping these accounts 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? For 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.
Ashok Ajmera
Yeah.
Binod Kumar
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 pipeline is there.
Binod Kumar
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, I am expecting some moderation in the treasury incomes, around 350, I am expecting that.
Ashok Ajmera
Okay, so it’s a little bit tapered down.
Binod Kumar
But if you see, 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. So I mean, the estimate of 350 overall looks.
Binod Kumar
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
Sure, sure. Next question will take from Kayuri [Phonetic]. Kayuri, please unmute yourself.
Kayuri
Hi, I just wanted to know whether the asset quality and loan growth will incrementally improve by quarter four to quarter six?
Operator
Sir, were you able to listen to the question?
Binod Kumar
No. I mean her voice was breaking.
Kayuri
I just wanted to know whether the asset quality and the loan growth will incrementally improve for quarter ’26.
Unidentified Speaker
I mean, I think she’s asking whether the asset quality and loan growth will improve from here on.
Binod Kumar
Got it. 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 will maintain that. Net NPA 0.5%, we can do 0%. But then after zero, what to do? So we will maintain that. And expecting a slippage ratio, I am also expecting that this level of slippage ratio will continue. Only aberration remains March. In March, because 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 steady. Credit growth, credit growth, I am hopeful that see, credit growth is also a function of how the 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%-7%. So my expectation is even next year, credit growth, whatever we are maintaining, we will be able to sustain that.
Kayuri
Thank you, sir. Sir, in that context, you know how do you expect the deposit growth to pan out, right? We have scope to improve the LDR, but deposit growth in the system certainly remains a challenge. So what is that you think, like 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.
Operator
Sure sir, sure. Next question we’ll take from Parth Gutka [Phonetic]. Parth please unmute yourself. And any other participants you have questions, please use the razor option now. Part please unmute yourself.
Parth Gutka
Yeah, hi. Thanks, Anand. So sir, on slide 19, within the OPEX line items, the insurance cost has gone up materially during this quarter. Any specific reason for the same?
Binod Kumar
Yeah, yeah. 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 extra years. So DICGC cost itself has gone up by 128 crore. Out of that, 82 crore 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 Gutka
Okay, sir. Thanks. And my second question is, again, within the OpEx, within the employee benefits, that line item has also gone up, as in the increase in the line item is much more than the overall opex growth. Anything to highlight there, sir?
Binod Kumar
AS15, we have made. If you see, last quarter, it has gone up by 102 crore. That is based purely on the actuarial valuation.
Parth Gutka
Okay sir, thanks. Thanks a lot.
Operator
Next question will take from Darshil [Phonetic]. Darshil, please unmute yourself.
Darshil
Hello. Good evening sir. Thank you so much for taking my question. Hopefully I’m audible.
Binod Kumar
Yeah. Audible.
Unidentified Participant
Yeah, hi, so sir, we’ve previously given guidance in regards to NIM and ROA, but we are already outperforming that guidance, so can we, is there a positive upgrade that you would like to issue? Because I think we were saying around 3.1-3.3 in NIMs, and we are already at 3.45, and similarly, ROA is also, we are performing much better than what we’ve guided, so maybe for next year and this year, are we upping the guidance up?
Binod Kumar
I mean, this year, even if I don’t upgrade already, I think we will surpass that, both NIM and ROA. ROA 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, maybe one or two basis points ROA impact, negative, sorry, NIM negative impact may come because MCLR book is repricing around 37% in this quarter, including three months, six months all. Out of that, one year, MCLR is around 19% repricing. And impact of 25 basis points rate cut two months will come in this quarter. So there may be some impact out of that. But part of that will be offset by deposit repricing, which is 18% in this quarter. So maybe one or two basis points, maybe it may go down in this quarter.
Darshil
Okay, okay. By end of FY27, so we can 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 20-30 basis points. So let us see how this quarter pan out, then it will be better to give guidance for the next quarter, I mean, next financial year.
Darshil
Okay, okay, okay. Fair enough, sir, and sir, just wanted to understand, like when you say that there is some cost of funds is increasing for you, so structurally, what do you feel that there will be more intensity, like there will be pricing issues from other banks also that will push this cost of funds higher, or how do we see that, sir? Because our reach and network is there, we’ll be kind of shielded from that. How do you see that intensity, sir?
Binod Kumar
No, no, definitely. See, 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.
Darshil
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 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.
Darshil
Okay, okay. And the last question from my end, sir, 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 one, but I think at least next quarter, I will be able to maintain this around 20, 20. Maybe a little bit it may go up because as I told in last quarter, through some MOC, some slippages increases. So maybe a little bit one two basis point here or there.
Darshil
Okay, okay. Fair enough, sir. That’s it from my side. Thank you so much, sir.
Operator
Thank you. Next question we’ll take from Jay Mundra [Phonetic]. Jay, please unmute yourself.
Jay Mundra
Hello. Yeah, hi. Good evening sir, a couple of questions.
Binod Kumar
Yeah.
Jay Mundra
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.
Jay Mundra
Okay. So, sir, this INR7,000 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? Could you quantify, sir, if possible? I mean, how much you would have earned without being in a denominator thing?
Binod Kumar
240 crore. Percentage term? INR240 crore, absolute number.
Jay Mundra
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%-1.6% on that annual.
Binod Kumar
So, percentage you can calculate around, say, differential. You can say around; you can take 2%. So on 7,000, 2% means around 140.
Jay Mundra
Right. So 140 is the additional interest earned on this.
Binod Kumar
Not interest earned, interest saved.
Jay Mundra
Correct. Saved. Right. And there is no implication on the fee or other income, right?
Binod Kumar
No, no, no. No implication.
Jay Mundra
Okay. Sure. And secondly, sir, I was under the impression that some of the, let us say, you are mid-sized to small-sized bank, and there is a lot of news flow about M&A merger. So other smaller banks, they are showing much faster growth, right, maybe to avoid any likely M&A, right? And at the same time, you are actually shedding INR7,000 crore in this quarter, and last quarter you also shed. So I was thinking that maybe you will show more base versus you are actually keeping yourself lean.
Binod Kumar
That decision of amalgamation will not depend on the one quarter growth. So that will, of course, depend on long-term viability.
Jay Mundra
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 SMA 1 and SMA 2 and SMA 0, if possible?
Binod Kumar
Yes. SMA-0, total SMA book is 31,488. Out of that, SMA-0 is 12,000. SMA-1 is 8,000. SMA-2 is almost 11,000. So 11,000 is 8,000, 19,000, 10%.
Jay Mundra
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 there?
Binod Kumar
No, no, not there, of course. Because see, that guideline say simply one guideline, they are saying LGD of 65%. That itself is huge demand will generate. Then they are saying on restructured asset, 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 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.
Jay Mundra
Correct, correct. So sir, what would be your assessment? Let’s say you have around INR1,900 crore as 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 getting, maintaining ROA, etc., we will try to give cushion to the balance sheet. Not any specific number in mind.
Jay Mundra
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 is, Jay, I’m telling you scenario. Say 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. 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, they are best case scenario, there is worst case scenario, so who is talking what? We don’t know.
Jay Mundra
Okay, sure, sure. Sure.
Operator
Jay, please fall back in the queue.
Jay Mundra
Sure. Okay. Thank you. Thanks a lot, sir.
Operator
Next question will take from Antariksha [Phonetic]. Antariksha, please unmute yourself.
Antariksha
Yeah, I’m audible.
Operator
Yeah,
Antariksha
Good evening, sir. Sir, just two questions. One is in the Jewel Loan or gold loan portfolio, can you tell us what is the incremental LTV that you are doing business in, both in retail and in agri?
Binod Kumar
Somewhere around 65%.
Unidentified Participant
On fresh loans?
Binod Kumar
LTV 65.
Antariksha
Sir, in agriculture, we are having 75% sir now, as of now. And other retail and MSME, it is ranging from 65%-75%. But we have done one thing. We are pricing, taking price of the gold on the moving average.
Binod Kumar
Last 30 days or last day, whichever is less, we are taking.
Antariksha
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.
Antariksha
So then I was thinking if your incremental borrowing of short-term 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, there are some loans which are hardly making ROA, no? Why? Okay. Okay, sure. And the second thing is, sir, you mentioned about bulk deposit rates going up incrementally. I’m assuming these would most likely be about three months, six month tenure, right?
Binod Kumar
That, that is the reason if you see our corporate, corporate we are, I mean very careful in giving the rates.
Antariksha
But if that is the case with you, it should be true for the whole system, right?
Binod Kumar
Yeah, yes, sir. It’s true for the whole system.
Antariksha
Why is pricing still so low? This is my question.
Binod Kumar
See, everybody pursues their different strategies. Somebody pursues aggressive growth, somebody thinks about the, I mean, moderate growth, somebody thinks about bottom line. So it depends on the strategy of the person, I can say. Bulk, if you see, for us, bulk is around only 18% of the total deposit.
Antariksha
Yes, yes, you mentioned that, 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 will be to get it down or maintain at this level.
Unidentified Participant
Yeah. Okay. Thank you sir.
Operator
Thank you, Antariksha. Next question will take from Ajmera ji.
Ashok Ajmera
Yes, sir. Sir, my one question was on. I say, 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 thing is that, have we made any assessment of a kind that all these sanctions and so many turbulences and the tariffs and other thing, whether 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? So I will say reply you in two parts. First of all, what will be the impact on growth because of the geopolitical tensions?
Binod Kumar
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 also are saying that Indian economy will be the fastest growing economy and will grow in the range of 6.5%-7%. So don’t see any challenge on the growth part, number one. If you don’t see 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? Tariff is, 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 that also, exposure to U.S. is only 4%-5%. I’m not seeing any much of the impact of that.
Ashok Ajmera
Okay. That’s good to know. And sir, one last thing on gold loan portfolio, and in that also, the bifurcation between the gold agri loans and non-agri loans, and what kind of yield are we having on the gold loans of both agri and non-agri? 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 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, you see, gold loan is a very safe type of loan. Only thing, the only risk we carry is some fraud happens. So we have put in various measures to avoid fraud. And since we were traditionally doing, so our systems are robust. So don’t see much of the challenge on that. Yield, we are getting good yield. You can tell? 8.7%. 8.7% yield, 8.70%, we are getting approximately.
Ashok Ajmera
That is overall or non-agri?
Binod Kumar
Overall.
Ashok Ajmera
Okay. Good. I mean, it’s a reasonably good yield. Yes, sir.
Operator
Yeah. Thank you. Ajmera ji, 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, and I can always speak to sir if you can reply.
Operator
Sure, sure, sure, sir. Next question will take from Darshil. Darshil, please unmute yourself.
Darshil
Hello. Yeah, hi. Sorry. All my questions are answered. So just one question from my last question from my end. So in terms of credit growth, when we are trying to reach double-digit 10-12%, is there, are we looking that maybe next year with good GDP numbers expected and good growth happening, can we aim for a higher, maybe mid-teens level of growth? Is that or maybe just 15% or something? Is there any type of plan being formulated to reach that growth, or are we willing to just have around top line growth of 10-12%, sir? I think 12-13% growth is good, Darshil. 12-13% because see, if you pursue very aggressive growth, 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.
Binod Kumar
I remain more worried about that. Risks should not build up. See, because risk is always built up in the good time. So I always remain careful of that.
Darshil
Okay, okay. Fair enough, sir. Fair enough. Yeah, that’s it from my side. Thank you.
Operator
Sure. Last question will take from Sushil Choksey ji. Sir, keep your question limited. And sir, before I think when Ajmera sir was asking, one question which came in the chat box was that, have you done or basically extended any moratorium to the MSMEs? And if yes, what’s the quantum?
Binod Kumar
MSMEs, you mean too because of the forex business?
Operator
Yes, forex rate disruption which has come. Yeah, yeah.
Binod Kumar
So, so far we have not extended.
Operator
Okay. Sure. Yeah, Sushil ji, you can unmute yourself and ask your question.
Sushil Choksey
Congratulations to Team Indian Bank for excellent performance, and market is also rewarding. Sir, my first question, if I take 12-24 month outlook, what would be a balance between RAM and corporate book? Any bold policy or direction? We will like to maintain same ratio 65-35?
Binod Kumar
65, 35. Because, see, yeah, yeah, I mean, yes, 65-35. Reason I’m telling you because, see, as a responsible banking, we also need to participate in the building of the country. And if we don’t do corporate, then banks don’t do, then who will do? I mean, infrastructure lending, we have to do. So as a part of strategy, we like to maintain between 65-35.
Sushil Choksey
Second thing, sir, when you are working so efficiently on RAM, on the digital stack, you have announced many products. You’ve launched and spent a lot of money. What is likely CapEx for next 12-24 months to be more efficient, more connected system? You are tapping salary account, host to a system, many other systems, supply chain. What kind of spend will we do to garner a bigger pie from the existing wallet?
Binod Kumar
Around INR2,000 crore per annum.
Sushil Choksey
Including.
Binod Kumar
Including both capex and opex. Because majority of it expenditure is also coming in the shape of opex, 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 INR600, and if your stock is trading at nearing 1.8-2 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 that’s why I have, if you see. This year I have kept approval from the board for QIP up to INR5,000 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 rewarding.
Binod Kumar
Yes, yes. I may not need.
Sushil Choksey
You may not need, but if market rewards, you are willing to dilute as well.
Binod Kumar
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
Sir, on the international book, it seems that a lot of opportunities are coming from Indian promoters specifically where 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 ancillaries are also repositioning some other 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, no. This type of pipeline, good number of, 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. 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 a negative impact that I’m very assured of. Sir, out of INR50,000 crore corporate book which you have indicated, how much would be manufacturing?
Binod Kumar
It’s a pipeline of manufacturing.
Ashutosh Choudhury
That’s a question to have.
Binod Kumar
Yeah, yeah. That I will give you, Sushil ji. Note down, you give him.
Sushil Choksey
No problem sir.
Operator
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.
Ashutosh Choudhury
Thank you.
Operator
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 a few initial one. Two things I will like to discuss as a concluding remark. We are investing hugely in IT and benefit of that is accruing, but not to the extent I desire. So a lot of initiative we are taking how we can digitally onboard our customers. A lot of efforts is going on there. We are seeing good traction also. And good benefit also we are seeing. Like my target is say my total digital business is 15%. I want to make it take it up to 50% in next two to three years. December, if you January, I have internally set a target that we will double the business figure in five years, last December. So from that means more than 25 lakh crore by December 2029.
We are on track of that also. We have plan of using AI in various, I mean, sector, various segment of the banking. 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. These are the few sectors we are working on where we can use AI and be more proactive other than reactive. We will continue focusing on RAM and CASA as, I mean, as I told, my half of the time goes on CASA. That is worth investing. That time is worth investing. If I can maintain this percentage of CASA, that will be worth investing. With that, I mean, whatever guidance we have given, we are on track in most of the parameters. Thank you.
Operator
[Operator Closing Remarks]