Binod Kumar, the MD and CEO of Indian Bank, has shared a positive outlook for the bank's future. He expects the bank’s gold loan portfolio to cross ₹1.5 lakh crore by the end of the current financial year (FY25). Currently, the gold loan book stands at around ₹1.25 lakh crore. The bank expects this segment to grow by about 20 per cent, driven primarily by an increase in the volume of gold pledged (tonnage) rather than just price hikes.

Gold loans are considered safe lending for banks because they are backed by physical collateral. Mr. Kumar noted that these are not just consumption loans but are often used as income-generating capital for small businesses. While the segment grew by 30 per cent last year due to rising gold prices, growth might be slightly slower this year because gold prices have cooled down. However, the demand remains robust among customers looking for quick credit.

Apart from gold, the bank is maintaining a strong focus on its RAM (Retail, Agriculture, and MSME) portfolio. Currently, RAM makes up 65 per cent of the bank's total loans, while corporate loans account for the remaining 35 per cent. The management wants to keep this ratio steady, as they see huge growth opportunities in helping small businesses and farmers grow.

On the liability side (deposits), the bank is working hard to improve its CASA (Current Account and Savings Account) ratio. CASA is important because these are low-cost deposits that help the bank maintain better margins. Currently, the CASA ratio is around 40 per cent. Mr. Kumar mentioned that branch participation has improved significantly, with 51 per cent of branches meeting their targets this quarter compared to only about 27 per cent last year.

The bank is also active in the international market. It recently raised $400 million through its GIFT City branch by issuing four-year bonds. This is part of a larger plan to raise $1 billion from overseas markets by the end of 2026. The bank expects to raise the remaining $600 million in the third quarter of this year to boost its dollar inflows.

Foreign Currency Non-Resident (Bank) or FCNR(B) deposits are another area of success. These are fixed deposits for NRIs (Non-Resident Indians) held in foreign currency. Indian Bank has already raised $1.5 billion through these deposits and expects to hit $2 billion soon. The bank noted that NRIs find these products attractive due to good returns. This high interest from NRIs actually led the RBI to close its special swap facility early, as the country received enough foreign currency inflows.

For bank officers and aspirants, this news shows that Indian Bank is balancing its risks well. By focusing on gold loans and RAM, the bank is staying safe while growing. The push for CASA means branch-level staff will continue to focus on relationship banking. As the bank expands its global footprint through GIFT City and FCNR(B) deposits, it signals a strong financial position for the public sector lender.