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Indian Bank Operations Subsidiary will start in 2025, Check important details here


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On Thursday, a senior official from the Public sector Indian Bank revealed pivotal developments regarding the establishment of a wholly-owned subsidiary, set to commence operations in the upcoming financial year.

Subsidiary Details: The subsidiary will receive a capital infusion of Rs 10 crore and will primarily focus on back-office processing, collection, sales, and marketing. The financial approval for this initiative was secured about a week ago.

Recruitment Process: The bank is currently in the process of recruiting top-level positions such as CEO and CTO for the subsidiary. A capital investment of Rs 10 crore is anticipated for this purpose.

Strategic Objectives: The strategic intent behind launching the subsidiary is to emphasize activities related to sales and marketing, collection, and the recovery process. The subsidiary, while not as extensive as Indian Bank, will handle specific functions such as call center operations and on-the-ground efforts for collection and recovery. It is expected to be operational in the next financial year.

Financial Performance: The bank reported a significant 52% increase in net profits, reaching Rs 2,119 crore in Oct-Dec 2023. This positive performance can be attributed to improvements in core income and a reduction in bad loans, marking a noteworthy rise from the Rs 1,396 crore net profit in the corresponding quarter of the previous year.

Digital Transactions: Digital transactions surged to 87% during the reviewed quarter. The bank has set an ambitious target of achieving Rs 75,000 crore in digital transactions for the current financial year, with the figure standing at Rs 52,000 crore as of December 2023.

Cybersecurity Initiatives: The bank is allocating Rs 200 crore over the next three years for enhancing cybersecurity. This involves the utilization of centralized servers and the implementation of AI and ML-driven cybersecurity systems.

Growth Projections: Despite achieving a remarkable 13% growth, the bank reaffirms its commitment to maintaining a growth rate of 10-12% during the current financial year. Stakeholders are assured that the bank remains well-capitalized.

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