Indian Bank profit rises 10% to Rs 3,273 crore, sets $2 billion FCNR deposit target

Indian Bank posted a 10% rise in net profit to Rs 3,273 crore in the first quarter, up from Rs 2,973 crore in the year-ago period, driven by an increase in yield on advances and strong growth in net interest income, among other factors.

Alongside the results, the public sector lender is pursuing an ambitious foreign currency deposit drive, aiming to raise $2 billion through FCNR(B) deposits this year. Indian Bank MD and CEO Binod Kumar said in Chennai on Friday that the bank has secured $140 million between June 15 and July 9 alone, with a pipeline of $1 billion already built toward the target, which it expects to reach by September.

The push follows the Reserve Bank of India’s withdrawal of the interest rate ceiling on fresh FCNR(B) deposits with maturities of three to five years, a relaxation that runs until September 30, 2026. The bank has seen a spurt in FCNR(B) inflows over the past 25 days as a result.

The $2 billion target is more than four times the $457 million Indian Bank raised through FCNR(B) deposits in all of FY26, and Kumar said it would be among the highest such mobilisation for the bank under the scheme.

To attract the inflows, Indian Bank has revised its interest rate on FCNR(B) deposits to 6% from 5.5%, with the annualised return for depositors working out to around 13%-14%.