Public sector Indian Bank will focus on rural and agriculture sector as major drivers of its credit expansion. | |
| The bank also plans to encash on the Rs 160 crore it has committed to put in place a core banking solution to reduce its cost of operations. |
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| The bank will also give thrust on special segments like the youth by offering them lending products such as education loan which will ultimately help convert them into loyal customers. |
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| Indian Bank GM Prakash Joshi told Business Standard that the bank will optimise its strength in the rural markets of Tamil Nadu and Andhra Pradesh to offer innovative products and services to the local population. |
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| Joshi informed that the bank has initiated high tech kiosks that will make available information to farmers about the payments due from their buyers as well as dish out other information such as weather forecast or farming advice. |
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| "We will however look at alll segments that are 'unbanked' and will not restrict ourselves to rural or agricultural areas," Joshi said pointing out that there can be such unbanked pockets in urban or even metropolitan locations. |
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| Dharavi in Mumbai, which sees a turnover of over Rs 4,000 crore every year, does not have a bank branch, he said, adding that Indian Bank will soon open one in Dharavi. |
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| Indian Bank has planned its IPO of 85.95 lakh equity shares from February 5, through which it expects to raise a capital of approximately Rs 100 crore. |
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| Joshi said that the bank will utilise the funds to further strengthen its liquidity position and improve the capital adequacy which is 12 per cent as of now. |
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| The bank sees a major growth opportunity in retail and agriculture business, as these two form nearly 40 per cent of its business, Joshi informed. He ruled out any slow down in the home loan segment as a result of increased interest rates. |
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