Indian Bank Plans 100 New Branches and 2,500 Hires in FY27, Targets Lower NPAs

Public sector lender Indian Bank has outlined its growth and asset quality targets for the current financial year, which includes expanding its physical footprint, increasing headcount, and bringing down bad loans.

According to MD and CEO Binod Kumar, the bank plans to add approximately 100 branches this year, mirroring its expansion effort from the previous financial year. The primary focus of this branch expansion will be to increase the bank's presence in the Central and Western regions of the country. As part of this rollout, the bank inaugurated 15 branches across India on August 15 to mark its foundation day. As of June 30, 2026, the bank operated 6,003 domestic branches, three overseas branches in Singapore, Colombo, and Jaffna, and an IFSC Banking Unit in Gandhinagar. The lender's regional presence was previously enhanced in the eastern region and Uttar Pradesh following the amalgamation of Allahabad Bank in 2020.

To support its growing business operations and to replace retiring employees, Indian Bank will increase its headcount by about 2,500 personnel during the current fiscal year. This recruitment drive will include specialist officers. Total employees at the bank stood at 41,875 as of June 30, 2026.

On the asset quality front, the bank aims to bring down its gross non-performing assets (NPAs) to between 1.5% and 1.6% of total advances by the end of the financial year. Net NPAs are targeted to be lowered to 0.15% to 0.2%. Additionally, the lender plans to sell ₹200 crore worth of bad loans to an asset reconstruction company (ARC) during the fiscal year.

The lender expects robust demand in its gold loan segment, projecting the portfolio to cross ₹1.5 lakh crore, up from its current level of around ₹1.25 lakh crore. While the bank witnessed a significant 30% growth in the segment last year driven by rising gold prices, growth is expected to moderate to around 20% this year due to a 30% decline in gold prices, with volume coming from increased tonnage. Binod Kumar noted that gold loans represent safe lending that supports income generation and small business growth rather than being utilized for consumption.

Currently, Retail, Agriculture, and MSME (RAM) sectors constitute 65% of the bank's overall loan book, with corporate lending accounting for the remaining 35%. The bank intends to maintain this composition going forward, citing substantial growth opportunities within the agriculture and MSME sectors.

"Indian Bank's strategic focus on expanding its branch network in the Central and Western regions, alongside maintaining a disciplined RAM portfolio, demonstrates a balanced approach to regional penetration and asset growth. Targeting a reduction in gross NPAs to 1.5-1.6% while managing bad loan sales to ARCs reflects sound risk management. Furthermore, focusing on the gold loan segment as a driver for small businesses provides a stable and secure avenue for credit expansion in the current financial climate." — Dr. Shishir Gupta, Founder & CEO, StartupLanes