Public Sector Lender Targets Wider Presence in Central and Western India; Focuses on Asset Quality, Gold Loans, Retail, Agriculture and MSME Growth
New Delhi: Indian Bank is planning to open around 100 new branches across the country during FY27 and recruit approximately 2,500 additional employees, including specialist officers, as the public sector lender looks to support business expansion and replace employees retiring during the financial year.
Indian Bank Managing Director and Chief Executive Officer Binod Kumar said the bank has similar expansion plans this year after opening around 100 branches in the previous financial year.
Speaking to PTI, Kumar said the bank had already inaugurated 15 branches across the country on August 15, coinciding with its foundation day.
Indian Bank to Expand Branch Network
The planned branch expansion is aimed at strengthening Indian Bank’s physical presence and supporting growth in new markets.
As of June 30, 2026, the bank had:
- 6,003 domestic branches
- 3 overseas branches
- Singapore
- Colombo
- Jaffna
- 1 IFSC Banking Unit (IBU) at Gandhinagar
Indian Bank is currently the seventh-largest public sector bank in India by the stated ranking.
The lender significantly strengthened its presence in eastern India and Uttar Pradesh following the amalgamation of Allahabad Bank with Indian Bank in 2020.
According to Kumar, the bank is now looking to strengthen its footprint in the Central and Western regions of the country.
The planned addition of 100 branches is therefore expected to help the bank expand its reach into markets where it sees further business opportunities.
Headcount to Rise by 2,500
Alongside branch expansion, Indian Bank plans to increase its workforce by approximately 2,500 personnel during FY27.
The recruitment programme will include specialist officers, along with employees required for the bank’s expanding operations.
The hiring plan has a dual objective — supporting business growth while also replacing employees who are expected to retire during the current financial year.
Indian Bank had a total workforce of 41,875 employees as of June 30, 2026.
The additional hiring is expected to strengthen manpower across branches, operational functions and specialised banking activities.
Focus on Maintaining Asset Quality
While expanding its business, Indian Bank is also focusing on maintaining and improving asset quality.
Managing Director and CEO Binod Kumar said the bank has been managing asset quality effectively.
The lender has set specific targets for reducing stressed assets during FY27.
Indian Bank aims to bring its:
- Gross NPA ratio down to 1.5–1.6 per cent
- Net NPA ratio down to 0.15–0.20 per cent
by the end of the current financial year.
The targets reflect the bank’s focus on maintaining a healthier loan book while continuing to expand credit.
₹200 Crore Bad Loan Sale Planned
As part of its asset-quality management strategy, Indian Bank plans to sell approximately ₹200 crore worth of bad loans to an Asset Reconstruction Company (ARC) during FY27.
Selling stressed loans to ARCs can help banks clean up their balance sheets and allow management to focus on recovering value from healthier assets and growing new business.
The proposed sale forms part of the bank’s broader efforts to manage non-performing assets and maintain the quality of its loan portfolio.
Gold Loan Portfolio Expected to Cross ₹1.5 Lakh Crore
One of the major growth areas identified by Indian Bank is its gold loan business.
The bank expects its gold loan portfolio to cross ₹1.5 lakh crore during FY27, supported by continued demand for gold-backed financing.
The bank’s current gold loan portfolio stands at approximately ₹1.25 lakh crore.
Kumar said the segment is expected to grow by around 20 per cent during the current financial year.
The growth is expected to come primarily through an increase in the quantity of gold pledged rather than simply through higher gold prices.
Gold Loans Seen as Support for Small Businesses
Kumar highlighted the nature of gold-backed lending and its role in supporting borrowers.
According to the bank’s management, gold loans are relatively secure lending products because they are backed by collateral. The bank also views a significant portion of gold loans as financing that can support income-generating activities and small businesses.
The lender witnessed particularly strong growth in the segment during the previous financial year.
Its gold loan business grew by approximately 30 per cent last year, helped in part by a sharp increase in gold prices.
However, the bank expects growth to moderate during FY27.
Kumar said the slower growth would be driven by changes in gold prices, meaning that future expansion would increasingly need to come from higher volumes or tonnage of gold pledged.
RAM Segment Accounts for 65% of Loan Book
Indian Bank is maintaining a strong focus on the Retail, Agriculture and MSME (RAM) segments.
These three categories currently account for approximately 65 per cent of the bank’s overall loan book.
The remaining 35 per cent comprises corporate lending.
The bank intends to maintain this broad portfolio mix going forward.
According to Kumar, the RAM segment has substantial growth potential, particularly because of opportunities in agriculture and the Micro, Small and Medium Enterprises (MSME) sector.
Agriculture and MSME Lending to Remain Key Growth Drivers
Indian Bank sees significant potential for expanding credit in agriculture and MSMEs.
The MSME sector represents a major source of employment and economic activity across India, while agricultural credit remains an important part of the country’s banking ecosystem.
By maintaining a 65 per cent share for RAM lending, Indian Bank intends to continue balancing retail and productive-sector credit with corporate lending.
The strategy could also help the bank diversify its loan portfolio and reduce excessive dependence on any single lending segment.
Indian Bank’s FY27 Expansion Strategy at a Glance
| Area | FY27 Plan / Position |
|---|---|
| New branches planned | Around 100 |
| Existing domestic branches | 6,003 |
| Overseas branches | 3 |
| IFSC Banking Unit | Gandhinagar |
| Current employee strength | 41,875 |
| Additional hiring | Around 2,500 |
| Gross NPA target | 1.5–1.6% |
| Net NPA target | 0.15–0.20% |
| Bad loans planned for ARC sale | ₹200 crore |
| Current gold loan portfolio | Around ₹1.25 lakh crore |
| Gold loan target | Above ₹1.5 lakh crore |
| Expected gold loan growth | Around 20% |
| RAM share of loan book | 65% |
| Corporate loan share | 35% |
Wider Geographic Expansion
Indian Bank’s branch strategy also reflects a shift in its geographic expansion priorities.
The amalgamation with Allahabad Bank significantly strengthened the lender’s presence in eastern India and Uttar Pradesh.
The bank is now looking to build a stronger presence in Central and Western India, where it sees additional opportunities for acquiring customers and expanding credit.
Opening approximately 100 branches during FY27 could therefore help the lender establish a stronger distribution network in these markets.
Balancing Growth With Financial Discipline
Indian Bank’s strategy for FY27 combines branch expansion, employee recruitment, loan growth and asset-quality improvement.
The bank’s challenge will be to achieve faster business growth while maintaining strict control over credit risk and operating costs.
Its focus on reducing gross and net NPAs, alongside the planned sale of stressed assets to an ARC, indicates that asset quality remains an important part of the lender’s growth strategy.
At the same time, the expected expansion in gold loans and continued emphasis on retail, agriculture and MSME lending could provide additional avenues for credit growth.
Outlook
Indian Bank is entering FY27 with an expansion strategy focused on strengthening its physical and human resources while increasing lending to growth-oriented segments.
The planned 100 new branches and recruitment of around 2,500 employees are expected to support the bank’s expansion and replace retiring personnel.
Meanwhile, the lender’s target of taking its gold loan portfolio beyond ₹1.5 lakh crore, maintaining RAM lending at around 65 per cent of the loan book, and reducing gross and net NPAs demonstrates its focus on balancing growth with asset quality.
With increasing emphasis on Central and Western India, agriculture, MSMEs and retail lending, Indian Bank is positioning itself for broader geographic and business expansion during FY27 while seeking to maintain a stronger and healthier balance sheet.
