1 week ago
Indian Bank Gold Loan Portfolio Seen Surpassing ₹1.5 Lakh Crore
Indian Bank lends money to people and businesses against their gold.
The bank currently has about ₹1.25 lakh crore in gold loans.
It expects this amount to grow beyond ₹1.5 lakh crore during the current financial year.
The bank expects gold loans to grow by about 20 per cent.
Last year, the segment grew faster because gold prices increased.
This year, the bank expects slower growth because the article says gold prices have declined by 30 per cent.
Most of the bank’s loans go to households, farmers and small businesses.
Indian Bank is also raising money from overseas investors and attracting deposits from non-resident Indians.
Its foreign-currency deposits are expected to reach about $2 billion by August 31.
Indian Bank expects its gold loan portfolio to exceed ₹1.5 lakh crore during the current financial year.
The bank’s gold loan book currently stands at around ₹1.25 lakh crore and is expected to grow about 20 per cent.
Managing Director and CEO Binod Kumar said growth will be driven by loan volumes rather than higher gold prices.
Retail, agriculture and MSME loans account for 65 per cent of Indian Bank’s overall loan book.
Indian Bank has raised $400 million through four-year bonds and plans to raise $1 billion overseas by the end of 2026.
- Who
- Indian Bank and its Managing Director and CEO Binod Kumar.
- What
- The bank expects its gold loan portfolio to surpass ₹1.5 lakh crore during the current financial year and outlined broader lending and fundraising plans.
- Where
- The lending and deposit activities concern Indian Bank, including its GIFT City Branch and overseas markets.
- When
- The comments were published on August 23, 2026; the bank expects to reach the gold-loan target during the current financial year.
- Why
- The expected growth is attributed to strong demand for gold loans, particularly from agriculture and MSME borrowers, as well as continued demand for the bank’s deposit and bond offerings.
Key facts
- Current gold loan portfolio
- Around ₹1.25 lakh crore
- Expected gold loan portfolio
- More than ₹1.5 lakh crore during the current financial year
- Expected gold loan growth
- About 20 per cent
- RAM share of loan book
- 65 per cent, covering retail, agriculture and MSME lending
- CASA share
- Around 40 per cent of deposits
- Overseas bond issuance
- $400 million raised through four-year bonds via the GIFT City Branch
- FCNR(B) deposits
- ₹? Indian Bank has already raised $1.5 billion and expects about $2 billion by August 31
Quotes
Binod Kumar
Indian Bank managing director and CEO
“Gold loan is safe lending for banks...it is not a consumption loan, but mostly it is income-generating and also helps small businesses to grow. Last year, we saw very significant growth of 30 per cent in the segment due to a jump in gold prices. It will be slower this year as there is a 30 per cent decline in gold prices”
thehindubusinessline.com
“Indian Bank has already raised $1.5 billion from FCNR(B) deposits...we have seen good demand from NRIs. They are willing to put their money in such a product as it provides attractive returns...we hope it would touch $2 billion”
thehindubusinessline.com
Sources
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