Indian Bank , a prominent public sector lender, has announced significant growth in its key financial metrics, demonstrating resilience in a dynamic banking environment.

Robust Growth in Total Business and Lending

Indian Bank reported a 10.2% year-on-year increase in total business, reaching ₹13.44 lakh crore. The bank's gross advances saw an impressive 11.3% year-on-year growth, rising to ₹6.00 lakh crore. This double-digit growth indicates a strong expansion in Indian Bank's lending activities, potentially reflecting increased demand for credit across various sectors of the economy.

Steady Rise in Deposits

Complementing its lending growth, Indian Bank also witnessed a solid 9.3% year-on-year increase in total deposits, which grew to ₹7.44 lakh crore. This growth in the deposit base suggests continued trust and confidence from the bank's customers, providing a stable funding source for its expanding loan portfolio.

Balanced Growth Strategy

The simultaneous growth in both advances and deposits points to a balanced approach in Indian Bank's operations. This strategy allows the bank to maintain a healthy loan-to-deposit ratio, which is crucial for sustainable banking operations.

Strong Performance in RAM Portfolio

Notably, the bank's RAM (Retail, Agriculture, and MSME) portfolio expanded by 16.0% year-on-year, reaching ₹3.63 lakh crore. This significant growth in the RAM segment underscores Indian Bank's focus on diverse lending avenues and its commitment to supporting key sectors of the economy.

Implications for the Banking Sector

Indian Bank's performance could be indicative of broader trends in the Indian banking sector, particularly among public sector banks. The growth across various segments of its business may signal improving economic conditions and increasing financial inclusion efforts.

While specific figures for the bank's profitability and asset quality were not disclosed in this update, the growth in core banking activities presents a positive outlook for Indian Bank's overall financial health.

Investors and market observers will likely keep a close watch on Indian Bank's future quarterly results to gain deeper insights into how this growth in total business, advances, and deposits translates into the bank's bottom line and overall financial strength.

Indian Bank , a prominent public sector bank in India, has announced two significant changes that are set to benefit its customers. The bank is making moves to enhance customer satisfaction and adjust its lending rates in response to market conditions.

Waiver of Minimum Balance Charges

In a customer-friendly move, Indian Bank has decided to waive charges for non-maintenance of minimum balance across all savings accounts. This change will come into effect from July 7, 2025. This decision is likely to bring relief to many account holders, especially those who struggle to maintain the required minimum balance in their savings accounts.

The elimination of these charges could potentially:

• Reduce the financial burden on customers
• Attract new account holders
• Improve overall customer satisfaction and loyalty

Reduction in MCLR

Alongside the minimum balance charge waiver, Indian Bank has also announced a reduction in its one-year Marginal Cost of Funds based Lending Rate (MCLR). The bank has cut its MCLR by 5 basis points, bringing it down to 9.00%. This change will be effective from July 3, 2025.

The MCLR is a benchmark interest rate, which is the minimum rate at which banks can lend. A reduction in MCLR typically leads to:

• Lower interest rates on loans linked to MCLR
• Potential benefits for existing and new borrowers
• Possible stimulation of credit growth

Implications for Customers and the Bank

These dual announcements from Indian Bank signify a strategic move to enhance its competitive position in the banking sector. By waiving minimum balance charges, the bank is likely aiming to expand its customer base and improve retention rates. The MCLR reduction, on the other hand, could make the bank's loan offerings more attractive in the market.

For customers, these changes translate to potential savings and increased accessibility to banking services. Borrowers with MCLR-linked loans may see a reduction in their equated monthly installments (EMIs) or loan tenures, depending on the terms of their loans.

As these changes are set to take effect in the coming months, customers of Indian Bank can look forward to these benefits, while the banking sector watches to see if these moves will influence similar decisions by other banks in the competitive Indian banking landscape.