Indian Bank Forecasts Gold Loan Portfolio to Reach Rs 1.5 Lakh Crore by FY27-End

Indian Bank's gold loan portfolio is expected to surpass Rs 1.5 lakh crore by the end of FY27, according to Indian Bank MD and CEO Binod Kumar.

The bank's gold loan book currently stands at around Rs 1.25 lakh crore, but with a growth rate of 20%, it should exceed the Rs 1.5 lakh crore mark this financial year.

Kumar attributed the growth in the gold loan segment to its income-generating nature and its ability to help small businesses grow. He noted that while the segment saw significant growth last year, driven by a jump in gold prices, the growth rate is expected to be slower this year due to a decline in gold prices.

The bank's overall loan book consists of 65% from Retail, Agriculture, and MSME (RAM) segments, while the remaining 35% comes from corporate clients. The bank aims to maintain this ratio going forward, with Kumar stating that RAM has huge capacity for growth.