IBIndian Bank532814Banking

Indian Bank's management discussed asset quality, margins, loan growth, cost-to-income ratio and ECL provisioning outlook in an interview

By ScoutQuest · Fri 16 Oct 2026, 10:20 AM IST · 1 min read

NIM expansion from 25bps hike

five to six basis points

NIM expansion from two hikes

eight to nine basis points

EBLR linked loan share

50 percent

Loan growth comfort zone

14 to 15 percent

Current loan growth

16.6 percent

Heard on business television between 10:23:24 - 10:26:24 IST.

• Management said no stress seen in asset quality despite El Nino concerns, with SMA 1 and SMA 2 percentages consistently declining.
• Said agriculture exposure is largely secured and linked to MCLR, so rate hikes will impact gradually, not like MSME/retail.
• Expects NIM expansion of 8-9 basis points from two rate hikes of 25 bps each, with EBLR-linked loans at 50% of book.
• Loan growth comfort zone guided at 14-15% versus current 16.6%, due to FCNR-led growth.
• Cost-to-income ratio improved ~5 percentage points due to one-off NCLT income; guided to ~44% excluding this and ~40% including it by year end.
• ROA guidance maintained at around 1.3%; ECL transition impact estimated at 3,500 crore rupees, of which 2,500 crore already provided, with 10-15 bps flow impact on credit cost.

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