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Indian Bank plans premium repositioning of credit card business, targets Q3 launch: MD Binod Kumar

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Indian Bank plans premium repositioning of credit card business, targets Q3 launch: MD Binod Kumar

Indian Bank plans premium repositioning of credit card business, targets Q3 launch: MD Binod Kumar

Indian Bank plans to launch a premium segment credit card in the third quarter of FY27 as it looks to reposition its credit card business, Managing Director & CEO Binod Kumar told ETBFSI. Kumar also spoke about FCNR(B) deployment, rate hikes and margins, growth guidance, IRDAI’s proposed distribution norms, the bank’s insurance plans, RAM growth, and impact of drought on agri loans.

Indian Bank plans to launch a premium-segment credit card in Q3 FY27 as it looks to reposition its card business.

Credit card business will initially remain within the bank; a subsidiary could be considered once it achieves sufficient scale.

FCNR(B) funds have already been deployed, with Rs 10,000 crore used to reduce bulk deposits, around Rs 5,000 crore of retail term deposit growth forgone and another Rs 6,000 crore deployed towards credit.

Deposit growth guidance raised to 11–12% from 9–11%, while advance growth guidance has been raised to 13–14% from 11–13%.

A 25 bps rate hike could support around 5–6 bps of annual NIM expansion; Q3 impact could be around 7–8 bps.

Bancassurance income is around Rs 200 crore, with the bank estimating a combined Rs 30–40 crore impact from IRDAI’s proposed distribution norms.

Indian Bank continues to pursue its insurance venture, with Kumar expecting the process to take at least 1.5–2 years.

RAM growth is expected at 15–17%, with the bank aiming to maintain RAM at around 65–67% of the loan book.



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