Public sector lender Indian Bank is on track to achieve its digital business target of ₹25 lakh crore by December 2029, said its MD & CEO Binod Kumar.
Currently, digital business accounts for 15% of total business, and the bank aims to raise this to 50% over the next two to three years, for which several measures are being implemented.
“I have internally set a target to double the business in five years. That would take total business to more than ₹25 lakh crore by December 2029, and we are on track,” he said during an analysts’ call.
During the first nine months of the current fiscal, the bank achieved digital business of ₹1.98 lakh crore, against a target of ₹2.25 lakh crore by March 2026, registering a growth of 66%.
“The liability side has increased from 37% to 43%. Retail assets have risen from 74% to 92%, agriculture from 83% to 96%, and MSME from 86% to 94%. We have launched 10 new MSME digital journeys, which are yet to fully pick up. Overall growth stands at 73%. E-bank guarantee (E-BG) issuance has grown from 4% to 27%,” said Executive Director Ashutosh Choudhury.
The bank is also exploring the deployment of artificial intelligence across multiple banking functions. Discussions and pilot initiatives are underway to use AI in account opening, cross-selling, personal finance management, automated grievance redressal, and suspicious transaction reporting, with the objective of becoming more proactive rather than reactive.
At the same time, the bank will continue to focus on retail, agriculture and MSME (RAM) lending, along with strengthening its CASA base. Mr. Kumar said a significant amount of time continues to be devoted to improving CASA ratios, adding that maintaining the current levels would be a worthwhile investment.
On asset quality, he said the bank’s gross non-performing asset (GNPA) stood at 2.23% and net NPA at 0.15%, compared with the earlier guidance of less than 2% GNPA.
The bank is targeting an aggressive 12%–13% credit growth in FY27.
Overall, the bank said it remains on track across most of the guidance parameters outlined earlier.