MUMBAI, April 30 -- Indian Bank expects steady balance-sheet growth in fiscal year 2026-27 (FY27) but warned that margins could remain under pressure as deposit costs stay elevated and funding growth lags credit demand.

"The cost of deposit is not going down, that is the major concern. Credit growth has been outpacing deposit growth since the last so many quarters, so there, of course, will be some bearing on cost of deposit," managing director and chief executive officer Binod Kumar said.

The bank's ability to cut deposit rates is constrained by the need to keep deposit mobilization in line with credit growth. "If credit growth is strong, bulk (deposits) we are getting at a higher rate, so then there is no point in cutting rates on ret...