After SBI, now Indian Bank has asked its employees not to conduct any function till 31 March

Public sector lender Indian Bank has instructed its senior employees across circles not to conduct any business conclaves, seminars, or felicitation functions till March 31.

“It is directed by the top management that no local training programmes be conducted/attended of channel partners by any of our filed personnel till March 31, 2024,” said the circular.

Earlier on January 2, the largest public sector lender State Bank of India (SBI) too instructed its senior employees across circles not to conduct any business conclaves, seminars, or felicitation functions till March 31, 2024.

While the circular offers no explanation, it comes amidst promising financial results for Indian Bank. In the July-September quarter, the bank saw a 62% year-on-year jump in net profit, fueled by strong retail loan growth and falling provisions.

However, growth in other income streams, like foreign exchange fees, has been sluggish. This could be one reason for the bank’s heightened focus on core business activities.

Despite the limitations, the future outlook for Indian Bank remains positive. Analysts at S&P Global predict loan growth of 13-14% in the next two fiscal years, driven primarily by retail, agriculture, and small business segments. The bank’s recent equity fundraising is also expected to strengthen its capital buffers and comply with SEBI regulations by reducing government ownership.