**Indian Bank Plans to Raise ₹5,000 Crore Amid Strong Profit Growth**
Indian Bank, a prominent public sector bank based in Chennai, has received board approval to raise ₹5,000 crore during the current financial year. The bank’s Managing Director and CEO, Binod Kumar, announced that the capital adequacy ratio for the April-June 2025 quarter stands at a robust 17.80%, an increase from 16.47% in the same quarter last year.
Kumar clarified that while the bank has the approval to raise funds, it does not anticipate an immediate need for this capital. He emphasized the bank’s strong capital position, stating, “17.8 per cent (of Capital Adequacy Ratio) is there.”
In addition to its fundraising plans, Indian Bank is focusing on enhancing its digital payment services. The bank is developing its own UPI application, named ‘IND-UPI’, which aims to provide a payment solution similar to popular platforms like PhonePe, GPay, and PayTM. This initiative is expected to save the bank approximately ₹150 crore annually by eliminating fees paid to other UPI service providers. Kumar noted that the application is currently being tested by senior officials and will soon be available to customers following approval from the National Payments Corporation of India (NPCI).
Kumar also mentioned the bank’s hiring plans, confirming that they have received approval to recruit 3,000 employees across various levels this financial year. The recruitment will focus on specialized roles, including cybersecurity and risk management.
In terms of financial performance, Indian Bank reported a 24% increase in net profit, reaching ₹2,973 crore for the April-June 2025 quarter, compared to ₹2,403 crore in the same period last year. Kumar expressed satisfaction with the bank’s growth trajectory, noting that the current quarter marked a shift to double-digit growth after a period of single-digit increases.
Looking ahead, the bank has set a recovery target of ₹5,500 to ₹6,500 crore for the year, having already recovered ₹2,059 crore in the first quarter.
**FAQ**
*What is the purpose of Indian Bank’s ₹5,000 crore fundraising?*
The funds will strengthen the bank’s capital base, supporting its growth initiatives and enhancing its financial stability.
