Gold loan portfolio to surpass ₹1.5 lakh crore by FY27-end: Indian Bank MD
This growth would come from tonnage, he said, adding that the gold loan segment is likely to grow about 20%
Indian Bank's MD and CEO, Binod Kumar, has revealed that the bank anticipates its gold loan portfolio to surpass ₹1.5 lakh crore by the end of the current financial year. The growth in gold loans is attributed to robust demand for the product, although it is expected to be slower this year due to a decline in gold prices. Currently, the gold loan portfolio stands at around ₹1.25 lakh crore, and the anticipated growth rate of about 20 per cent should propel it to exceed ₹1.5 lakh crore.
Kumar emphasized that the retail, agriculture, and micro, small, and medium enterprises (RAM) segment constitutes 65 per cent of the overall loan book, with the remaining 35 per cent from corporate. The bank aims to maintain this ratio in the future, given the significant growth potential in agriculture and MSMEs. Additionally, Kumar highlighted the bank's strong low-cost deposits, with CASA (Current Account and Savings Account) comprising around 40 per cent of the total deposits.
The bank has also mobilized $400 million by issuing four-year bonds to global investors and expects to raise the remaining $600 million by the end of 2026. Furthermore, the bank anticipates about $2 billion in Foreign Currency Non-Resident (Bank) or FCNR (B) deposits by August 31, with already $1.5 billion in FCNR(B) deposits raised so far.
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