Indian Bank has raised its loan and deposit growth targets for fiscal year 2027 (FY27) following strong business performance in the first half, managing director and CEO Binod Kumar said. The bank now expects deposit growth of 11-12% and advance growth of 13-14%, up from previous guidance of 9-11% and 11-13%, respectively. It also plans to open 100 new branches this financial year, focusing on western and central India, according to an interview with Mint.
The revised guidance follows the bank's Q2 FY27 results, which showed a 12.5% year-on-year increase in deposits to ₹8.74 trillion and a 16.39% rise in advances to ₹7.22 trillion. Total business grew 14.22% to ₹15.96 trillion. Net profit increased 14.71% year-on-year to ₹3,462 crore, while net interest income rose 17.83% to ₹7,719 crore. Operating profit surged 46.58% to ₹7,090 crore. Kumar highlighted strong demand across retail lending, agriculture, and MSME sectors.
Indian Bank's retail advances grew 17.37% to ₹1.53 trillion, agriculture advances rose 17.18% to ₹1.71 trillion, and MSME lending expanded 19.06% to ₹1.18 trillion. The bank expects agriculture growth to remain steady and anticipates recovering more from bad loans than initially targeted. This performance positions Indian Bank among state-owned lenders showing robust growth amid a competitive banking sector in India.
The bank's plan to open 100 branches this fiscal year aims to strengthen its presence in western and central India. Binod Kumar's comments and the Q2 FY27 financial results were published by livemint.com on October 18, 2026.