1. Home
  2. Infrastructure Urban
  3. ECONOMY & POLICY
  4. Indian Bank to Provide Rs 400 billion in Corporate Loans for FY25
Indian Bank to Provide Rs 400 billion in Corporate Loans for FY25
ECONOMY & POLICY

Indian Bank to Provide Rs 400 billion in Corporate Loans for FY25

02 Aug 2024 2 Min Read CW Team
Indian Bank's Managing Director and CEO, S L Jain, announced that the bank has a corporate loan pipeline amounting to Rs 400 billion for the fiscal year FY25. The loans are distributed across various sectors, including iron and steel, road infrastructure, non-banking financial companies (NBFCs), renewable energy, and city gas distribution. During a press briefing, Jain revealed that approximately Rs 190 billion of the Rs 400 billion pipeline remains undisbursed in terms of working capital.

Jain elaborated that in addition to major corporate sectors such as road infrastructure, NBFCs, renewable energy, smart metering, and city gas distribution, the bank has also ventured into the metal sector. Corporate lending represents 38 per cent of the bank?s total loan portfolio, with the remaining portion allocated to retail, agriculture, and MSME (RAM) sectors. The bank?s total corporate outstanding loans are Rs 1.9 trillion, and the corporate collection efficiency stands at 99 per cent.

When asked about deposit challenges, Jain mentioned that attracting deposits is difficult due to alternative investment options like mutual funds and government securities that offer returns. He acknowledged the difficulty in obtaining low-cost deposits and noted that the bank has established around 100 resource acquisition centres to attract business from individual and institutional clients.

Regarding the Reserve Bank of India's draft guidelines on the Liquidity Coverage Ratio (LCR), Jain indicated that the bank's LCR would be impacted by 5 per cent on its current ratio of 120 per cent. The draft guidelines suggest that banks should maintain a higher stock of liquid securities as a buffer for deposits due to the risks associated with increased use of technology for fund transfers.

Additionally, Indian Bank aims to recover Rs 70 billion during the current fiscal year FY25.

Indian Bank's Managing Director and CEO, S L Jain, announced that the bank has a corporate loan pipeline amounting to Rs 400 billion for the fiscal year FY25. The loans are distributed across various sectors, including iron and steel, road infrastructure, non-banking financial companies (NBFCs), renewable energy, and city gas distribution. During a press briefing, Jain revealed that approximately Rs 190 billion of the Rs 400 billion pipeline remains undisbursed in terms of working capital. Jain elaborated that in addition to major corporate sectors such as road infrastructure, NBFCs, renewable energy, smart metering, and city gas distribution, the bank has also ventured into the metal sector. Corporate lending represents 38 per cent of the bank?s total loan portfolio, with the remaining portion allocated to retail, agriculture, and MSME (RAM) sectors. The bank?s total corporate outstanding loans are Rs 1.9 trillion, and the corporate collection efficiency stands at 99 per cent. When asked about deposit challenges, Jain mentioned that attracting deposits is difficult due to alternative investment options like mutual funds and government securities that offer returns. He acknowledged the difficulty in obtaining low-cost deposits and noted that the bank has established around 100 resource acquisition centres to attract business from individual and institutional clients. Regarding the Reserve Bank of India's draft guidelines on the Liquidity Coverage Ratio (LCR), Jain indicated that the bank's LCR would be impacted by 5 per cent on its current ratio of 120 per cent. The draft guidelines suggest that banks should maintain a higher stock of liquid securities as a buffer for deposits due to the risks associated with increased use of technology for fund transfers. Additionally, Indian Bank aims to recover Rs 70 billion during the current fiscal year FY25.

Next Story
Infrastructure Transport
26 Nov 2024

Warangal Airport Project on Track for Timely Completion

Telangana has consistently experienced rapid growth since its formation, with a notable 70% increase in economic output over the past decade, driven primarily by the services sector concentrated around Hyderabad. However, regional disparities have led to uneven development across districts. In an effort to address this imbalance, the Telangana government has earmarked Rs 205 crore for the construction of an airport at Mamnoor, near Warangal. This will be the state's second airport, as it currently only has one, while neighboring Andhra Pradesh has more. The airport, capable of handling aircraf..

Read More
Next Story
Infrastructure Urban
26 Nov 2024

Belrise Industries Plans Rs 2,150 Crore IPO to Reduce Debt

Indian automotive component manufacturer Belrise Industries has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise Rs 2,150 crore through an initial public offering (IPO). The offering will be entirely a fresh issue of shares, with no offer for sale (OFS) component. The company is also considering a pre-IPO placement of up to Rs 430 crore, which could reduce the final size of the issue. Belrise plans to utilize Rs1,618 crore of the IPO proceeds to pay off its debt, which stood at Rs 2,463 crore as of June 2024. With a robust presence ..

Read More
Next Story
Infrastructure Energy
26 Nov 2024

Sarda Energy and SM Steels Secure Coal Mines in Latest Auction

Sarda Energy and Minerals Ltd and S M Steels and Power Ltd were successful in securing coal blocks on the second day of the 10th round of commercial coal mine auctions. Sarda Energy won a coal mine in Chhattisgarh with geological reserves of 102.268 million tonnes, while S M Steels and Power secured a block in Jharkhand with 77.9 million tonnes of reserves. These two blocks are expected to generate an annual revenue of Rs 339.06 crore once operational, with a capital investment of Rs 315 crore and employment for 2,839 people. The ongoing auction features nine blocks in total. On the first day ..

Read More

Opinion Poll

Question : Which technological advancement do you believe will most transform the real estate industry in the coming years?

Latest updates

Warangal Airport Project on Track for Timely Completion
AVIATION & AIRPORTS
26 Nov 2024

Warangal Airport Project on Track for Timely Completion

Belrise Industries Plans Rs 2,150 Crore IPO to Reduce Debt
ECONOMY & POLICY
26 Nov 2024

Belrise Industries Plans Rs 2,150 Crore IPO to Reduce Debt

Sarda Energy and SM Steels Secure Coal Mines in Latest Auction
COAL & MINING
26 Nov 2024

Sarda Energy and SM Steels Secure Coal Mines in Latest Auction

ACC, NLC, and JSW Energy Win Coal Mines in 10th Round of Auction
COAL & MINING
26 Nov 2024

ACC, NLC, and JSW Energy Win Coal Mines in 10th Round of Auction

Bihar Cabinet Approves Rs 197 Crore for Infrastructure Projects
ROADS & HIGHWAYS
26 Nov 2024

Bihar Cabinet Approves Rs 197 Crore for Infrastructure Projects

RPP Infra Projects Secures Order from Bhabha Atomic Research Centre
ECONOMY & POLICY
26 Nov 2024

RPP Infra Projects Secures Order from Bhabha Atomic Research Centre

Zopper Raises Rs 211 Crore in Series D Funding to Expand Insurtech Platform
ECONOMY & POLICY
26 Nov 2024

Zopper Raises Rs 211 Crore in Series D Funding to Expand Insurtech Platform

Finance Ministry to Launch Digital Credit Assessment Model for MSMEs in December
ECONOMY & POLICY
26 Nov 2024

Finance Ministry to Launch Digital Credit Assessment Model for MSMEs in December

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000