Indian Bank Aims for Rs 1.5 Lakh Crore Gold Loan Book, Expands Overseas Fundraising

Indian Bank's gold loan portfolio is expected to cross Rs 1.5 lakh crore this financial year, up from its current level of around Rs 1.25 lakh crore. The bank's managing director and CEO, Binod Kumar, said the growth in gold loans will be slower than last year due to a decline in gold prices by around 30 per cent.

The bank had recorded a growth of 30 per cent in gold loans last year, which was largely driven by a sharp rise in gold prices. This year, however, Kumar expects the growth to come mainly from higher loan volumes.

Retail, Agriculture and MSME (RAM) account for around 65 per cent of Indian Bank's overall loan book, while the remaining 35 per cent comes from corporate lending. The bank plans to maintain this ratio as it sees strong opportunities for growth in agriculture and MSMEs.