• Growth and deposits: Indian Bank maintained its guidance of 9–11% for deposit growth and 11–13% for advances, with potential revisions to be considered after Q2. The lender has raised $140 million in foreign currency deposits and aims to raise $1.5–$2 billion in FCNR and $6–$7 million in ECB by end-September.
• Net interest margin: Overall NIM reached 3.29% and domestic NIM stood at 3.41%, supported by shedding approximately 6,000 crore of low-yielding loans. Management expects marginal NIM expansion ahead while balancing resource costs and lending growth.
• Asset quality metrics: Full-year credit cost and slippage ratio are guided to remain below 1%, down from current levels of 0.23% and 0.77% respectively. Management reported no broad stress from the West Asia crisis, noting that MSME slippages were confined to one or two accounts and the SMA ratio fell to 4.69%.
• Capital and provisioning: The bank created a 1,000 crore ECL buffer during the quarter toward an estimated total impact of 3,000 crore, aiming for 1,500–2,000 crore in total provisions this year. With a CRAR of 17.53%, management stated there is no need to raise external capital for growth or ECL requirements.