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Indian Bank aims to make digital transactions of Rs 1 lakh crore: MD & CEO

Chennai, May 7: India’s public sector bank has set a target to cross business transactions of Rs 1 lakh crore through digital channels, a top official said on Tuesday.
The city-headquartered bank had completed Rs 81,000 crore transactions through digital medium last fiscal, Managing Director and CEO Shanti Lal Jain said here.
“As far as digital transactions are concerned, it has grown by 4 percent to 89 percent overall in FY23-24. Last financial year (FY23), the number of digital transactions was 85 percent.” he told reporters.
Indian Bank on Monday reported a 55 per cent rise in net profit to Rs 2,247 crore for the January-March 2024 quarter, compared to a net profit of Rs 1,447 crore last year.
Replying to a question, Jain said, “we will try to cross Rs 1 lakh crore. We have reached Rs 81,000 crore and we will try to cross at least Rs 1 lakh crore (of business through digital transactions). Our internal goals are very high.”
On whether the number of customers visiting branches would decline as digital transactions increase, Jain said, “We get all kinds of consumers and to serve them the bank operated in four ways.
Mobile banking, internet banking, website banking and guided process. With a guided process, a bank employee assists a customer and there is no paper involved.”
On what the recovery target would be for the current financial year, he said, “It will be around Rs 7,000 to Rs 8,000 crore.”
“Last time we said we will recover about Rs 8,000 crore and we have recovered Rs 8,800 crore. This year too, we are planning a recovery of between Rs 7,000 and Rs 8,000 crore,” he added.
On the growth of deposits and advances, Jain expressed confidence that the bank would be able to achieve similar performance as last year. “Last year we said deposits will grow by 8-10 percent and we have grown by 11 percent. And similarly, we have said that lending will grow at 10-12 percent and we have grown at 13 percent. This time too, we say deposits will grow by 8 to 10 percent and credits by 11 to 13 percent,” he said.
Indian Bank witnessed an 11 per cent YoY increase in total deposits reaching Rs 6,88,000 crore as on March 31, 2024, while gross advances rose 13 per cent to Rs 5,33,773 crore.
To a question about fundraising, Jain said the bank was adequately capitalized with a capital adequacy ratio of 16.44 percent. “We will discuss this with the board and come back,” he added. (PTI)