# 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.
- Title: Indian Bank MD: Rate Hike Won't Significantly Hurt Asset…
- Summary: 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…
- Keywords: indian bank, binod kumar, rbi, repo rate hike, asset quality, credit growth, gold loans, ai banking, business, money, news, Indian
- Source: Financialexpress — https://financialexpress.com/business/banking-finance-rate-hike-unlikely-to-significantly-hit-asset-quality-says-indian-bank-md-4365243
- Author: George Mathew
- Published: 2026-10-20T04:15:26+00:00
- Read time: 1 min
- Topics: indian bank, binod kumar, rbi, repo rate hike, asset quality, credit growth, gold loans, ai banking, business, money, news
## 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.
## Key takeaway

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.