Mumbai, July 16 -- Indian Bank has set a target to recover Rs 55 bn from bad loans in FY27, its managing director and chief executive informed news agencies, noting a first quarter recovery of Rs 18.85 bn. The bank said it aims to garner between Rs 45 bn and Rs 55 bn under this head and expects to realise Rs five bn during the ongoing year from cases listed before the National Company Law Tribunal. The comments formed part of a wider update on deposit mobilisation and asset quality.
On foreign currency deposits, the bank reported mobilising $140 mn till July nine and indicated plans to raise two billion dollars in Foreign Currency Non-Resident (Bank) deposits, hereafter FCNR(B), by September. Management said it has a pipeline of one billion dollars. The bank currently offers interest rates of 5.5 to 6.5 per cent on FCNR(B) deposits depending on tenure and amount.
The Reserve Bank of India withdrew until September thirty the interest rate ceiling on fresh FCNR(B) deposits of three to five years' maturity to attract foreign currency inflows. FCNR(B) inflows had weakened, with net inflows falling to $946 mn in FY26 from seven point one bn in FY25, a trend the bank noted while pursuing its deposit drive. Regulators introduced similar measures during earlier external pressures.
Indian Bank reported robust CASA growth of 15.3 per cent in the first quarter, with CASA rising to Rs 3,195.25 bn from Rs 2,771.16 bn at the end of June 2025. CASA represented 39.73 per cent of total deposits and the bank is working to lift the ratio to forty per cent during the year. The average savings balance more than doubled to Rs 53,000 while the average current account balance improved from Rs 0.136 mn to Rs 0.19 mn.
Published by HT Digital Content Services with permission from Construction World.