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‘We are in favour of M&A financing’

October 18, 2025

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Financial Express Kochi

Indian Bank reported an 11% YoY rise in net profit to ₹3,018 crore. Managing Director and CEO Binod Kumar discusses with Narayanan V the lender's quarterly performance, challenges in deposit growth, and views on bank funding to mergers & acquisitions (M&A).

Excerpts:

What factors led to a 13% business growth in Q2?

Growth has been a challenge for the bank for some time, but since last quarter, overall business has significantly improved. Total business grew 12.3% YOY to ₹13.97 lakh crore. Deposits rose 12.09% to ₹7.76 lakh crore, with CASA increasing 7% and the CASA ratio at 38.87%.Advances grew 12.65% YOY to ₹6.20 lakh crore. We sold inter-bank participation certificates worth around ₹12,000 crore, which reduced credit growth by 2%; otherwise, it would have been 14%. Consequently, net profit grew 11.49% annually.

But corporate credit growth was only 5%.

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