Indian Bank to add 100 branches and increase headcount by 2,500 in FY27

Indian Bank plans to add about 100 branches this year, with a primary focus on increasing the bank’s presence in the Central and Western parts of the country.

To manage growing business and replace retiring employees, the bank would increase its headcount by about 2,500 personnel, including specialist officers.

“Last year we opened 100 branches. This year too we have similar plans. Just on August 15, which was our foundation day, the bank inaugurated 15 branches across the country,” Indian Bank MD and CEO Binod Kumar said in an interaction.

The bank had 6,003 domestic branches and three overseas — Singapore, Colombo and Jaffna and IFSC Banking Unit (IBU) at Gandhinagar as of June 30, 2026.

The seventh-biggest public sector bank enhanced its presence in the eastern region and Uttar Pradesh with the amalgamation of Allahabad Bank in 2020.

“Now we are trying to increase our presence in the Central and Western parts of the country,” he said.

On the recruitment side, Kumar said, the bank would increase its headcount by 2,500 during the current fiscal. Total employees of the bank stood at 41,875 at the end of June 30, 2026.

Asked about asset quality management, Kumar said the bank has been managing it quite well.

The bank aims to bring down gross non-performing assets (NPAs) to 1.5-1.6 per cent of the total advances and Net NPAs to 0.15-0.2 per cent by the end of the current financial year.

Besides, he said, the bank would undertake the sale of Rs 200 crore in bad loans to an asset reconstruction company (ARC) during the current financial year.

On the asset side, Kumar said the lender expects its gold loan book to cross Rs 1.5 lakh crore in the current financial year, supported by robust demand.

“Gold loan is safe lending for banks...it is not a consumption loan, but mostly it is income-generating and also helps small businesses to grow.

“Last year, we saw very significant growth of 30 per cent in the segment due to a jump in gold prices. It will be slower this year as there is a 30 per cent decline in gold prices,” Kumar said.

This growth would come from tonnage, he said, adding that the gold loan segment is likely to grow about 20 per cent.

Currently, the gold loan portfolio is around Rs 1.25 lakh crore, and the book should exceed Rs 1.5 lakh crore during this financial year at the anticipated growth rate, he said.

Kumar further said that RAM (Retail, Agriculture, and MSME) constitutes 65 per cent of the overall loan book while the remaining 35 per cent is from corporate.

The bank wants to maintain the ratio going forward, he said, adding that RAM has huge capacity for growth with a lot of opportunity in agriculture and MSMEs.