Indian Bank Targets Rs 1.5 Lakh Crore Gold Loan Portfolio

Indian Bank expects its gold loan portfolio to exceed Rs 1.5 lakh crore by the end of the current financial year, rising from approximately Rs 1.25 lakh crore. Managing Director and CEO Binod Kumar noted that while a 30 per cent growth last year was fueled by rising gold prices, this year's projected 20 per cent growth will be driven by tonnage, as gold prices have declined by 30 per cent.

The lender is prioritizing its Retail, Agriculture, and MSME segment, which currently accounts for 65 per cent of its loan book. Kumar characterized gold loans as safe lending that supports income generation and small business growth rather than consumption.

To support its broader financial goals, the bank raised USD 400 million through four-year bonds via its GIFT City Branch on August 18. This is part of a USD 1 billion overseas fundraising target for 2026. Separately, the Reserve Bank of India closed its concessional swap facility for FCNR(B) deposits early after recording USD 72.848 billion in inflows as of August 21.