Focus stays on RAM as Indian Bank tilts towards MSMEs

Chennai-based Indian Bank completed the fifth year of its amalgamation during the first quarter (Q1). The bank's Managing Director and Chief Executive Officer Binod Kumar shares the impact of the merger, the current US tariff scenario, and long-term growth plans in an interview with Shine Jacob in Chennai. Edited excerpts:

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Q1 marked five years since the merger of Allahabad Bank into Indian Bank. How do you view the growth story over this period?

It was an amalgamation of almost equal banks, and that created synergy. Our presence has grown manifold. The cultures were different: Indian Bank has traditionally been conservative and was largely unscathed during the asset quality review, while Allahabad Bank had strong expertise in corporate credit. The combination of conservatism and corporate strategy worked well for us.

That's why our asset quality has steadily improved. Gross non-performing assets (NPAs) have dropped from 11.39 per cent at the time of amalgamation to 3.01 per cent now. Net NPAs have fallen from 4.19 per cent in March 2020 to 0.18 per cent in June 2025—among the best in the industry.

Similarly, net profit, which was negative at ₹4,643 crore in March 2020, turned around to ₹10,918 crore in the last financial year. Our return on assets stands at 1.32 per cent, better than many private banks. Overall, the merger has been very successful, helping us expand our business, footprint, and culture.