Treasury earnings reached ₹500 crore in Q1, against the bank’s estimate of ₹300 crore. MD and CEO Binod Kumar outlined the outlook in a discussion with PTI. The annual target follows this better-than-expected start, with treasury emerging as an important part of the lender’s earnings plans.

Treasury income comes from trading financial instruments, including bonds, and earning interest on the bank’s investments. The revised expectation reflects confidence in these operations, although the full-year outcome will depend on earnings across the remaining quarters.

On asset quality, Indian Bank is targeting a year-end gross NPA ratio of 1.5%–1.6% and a net NPA ratio of 0.15%–0.2%. As part of its clean-up efforts, it intends to transfer ₹200 crore in stressed loans to an asset reconstruction company, which purchases troubled debt from lenders.

Kumar expects gold loans to exceed ₹1.5 lakh crore this year, compared with the current ₹1.25 lakh crore portfolio. Despite a recent decline in gold prices, the bank expects demand for borrowing against gold to grow. It views the physical collateral and support for small businesses as strengths of this segment.

The lender plans to retain its existing lending mix: 65% across retail, agriculture and MSMEs, collectively called RAM, and 35% in corporate credit. Agriculture and small businesses remain areas where it sees room for expansion.