From Financialexpress · George Mathew · · 1m 30s
Indian Bank MD: Rate Hike Won't Significantly Hurt Asset Quality
Indian Bank MD says rate hikes won't hurt asset quality despite deposit competition.
In brief
Indian Bank MD says rate hikes won't hurt asset quality despite deposit competition. Indian Bank MD Binod Kumar states rate hikes unlikely to significantly impact asset quality as banks adjust loan terms for borrowers at maximum EMI levels. Originally reported by Financialexpress.
Indian Bank MD on rate hikes
Indian Bank MD Binod Kumar expects stable asset quality and sustained profitability despite deposit competition and RBI's 25-bps repo rate hike.
Asset quality impact
Higher interest rates may pressure retail borrowers at maximum affordable EMI levels but banks can extend loan tenures or reset repayment schedules.
Credit growth targets
Retail credit growth target: 15-17%, corporate lending: lower double digits, housing loans: 28-30% growth.
Gold loan performance
Gold loan portfolio valued at Rs 1.4 lakh crore with growth driven by rising gold prices.
Technology investments
Bank investing Rs 2,000 crore in technology with AI for customer convenience and MSME lending models.
AI and banking jobs
AI will change job roles rather than cause job losses, creating new opportunities in banking systems.
Q2 performance
Q2 net profit rose 15% to Rs 3,462 crore with credit growth at 16.39% and asset quality improving.
Capital adequacy
Bank's capital adequacy ratio at 16.21% with potential Rs 2,000 crore Tier-II bond redemption in January.
Third quarter outlook
Bank expects similar Q3 performance with credit growth in 12-14% range while maintaining profitability and asset quality.
The one thing
Indian Bank MD Binod Kumar states rate hikes unlikely to significantly impact asset quality as banks adjust loan terms for borrowers at maximum EMI levels.
