Indian Bank MD & CEO Shanti Lal Jain says that they are in comfortable position as cash recovery is more than the fresh slippages.

Indian Bank is planning to recover bad debts of ₹7,000 crore in FY25 against ₹8,800 crore recovered in the year ago period, said its top executive.

“Last time, we recovered about ₹8,800 crore. But this number may come down. We will be making a recovery of around ₹7,000 crore,” MD & CEO Shanti Lal Jain said at the press meet.

Asserting that they would be recovering about ₹1,750 per quarter, he said in the first quarter they recovered ₹1,937 crore. Cash recovery was more than the fresh slippages of ₹1,928 crore.

Elaborating further, he said “MSME accounted for slippage of ₹909 crore, followed by agri ₹597 crore and retail ₹422 crore. from retail.” He added: “We also recovered ₹300 crore. In Q1, we contained the slippage ratio from 1.57% to 1.50%.”

On the fund raising, he said “The bank is adequately capitalised. Besides, they had already obtained approvals from the board and shareholders to raise ₹5,000 crore through equity, ₹2,000 crore through Tier II Bonds and ₹5,000 crore of infra bonds in FY25.

To a question, how much they are planning to recover through Asset Reconstruction Company, he said that last year the bank recovered ₹464 crore and this fiscal it plans to recover ₹400 crore.

Mr. Jain said “the bank is targeting 8-10% growth in deposits and 11-13% in credit. In Q1, it achieved 10% and 12% respectively.”

Regarding branch expansion, he said last year 79 branches, and this year target was 100, of which approval has been given to open 30 branches soon.

The bank’s RAM and corporate sector advances is in the ratio of 62:38. Mr. Jain said that they would like to maintain the same ratio as the risk is spread and it gives good revenue.