Indian Bank bars staff from conclaves, seminars, and felicitations till Mar 31

Indian bank branch in Delhi

Public sector lender Indian Bank has instructed its senior employees across circles not to conduct any business conclaves, seminars, or felicitation functions till March 31.

"It is directed by the top management that no level campaigns with any of our channel partners are to be conducted till March 31, 2023. All focus to be diverted on business parameters of the bank, "said an internal circular of January 5, that Moneycontrol has reviewed.

"It is directed by the top management that no local training programmes be conducted/attended of channel partners by any of our filed personnel till March 31, 2024," said the circular.

"All are to strictly comply with the directions, any deviation from the said directives will be viewed with extreme seriousness by the top management, "the directive added.

However, the circular has not mentioned any specific reason behind it. An email sent to the bank seeking a response remained unanswered till the time of writing the copy.

Earlier on January 2, the largest public sector lender State Bank of India (SBI) too instructed its senior employees across circles not to conduct any business conclaves, seminars, or felicitation functions till March 31, 2024.

In the July- September quarter, Indian Bank's net profit increased 62 percent year-on-year (YoY) riding on retail loan growth and a fall in provisions even as other income growth was tepid due to a fall in foreign exchange fees. Net profit increased to Rs 1,988 crore in September 2023 from Rs 1,225 crore a year ago.

However, total advances increased 12 percent to Rs 4.92 lakh crore in September mainly due to a 14 percent increase in retail loans and a 16 percent growth in agriculture advances. Retail, agriculture and MSME make up 62 percent of the bank's loan book. Home loans grew by 13 percent, auto loans by 36 percent and personal loans grew by 49 percent.

Indian Bank will see loan growth of around 13-14 percent in the next two fiscal years, S&P Global said in a report on December 22.

"We expect loan growth of 13-14 percent over the next two fiscal years, primarily driven by retail, agriculture and micro, small and midsized enterprises," said the rating agency.

The agency, additionally, said that the lender's recent equity fundraising will improve its capital buffers.

"The transaction will also put the bank in line with the Securities and Exchange Board of India's (SEBI) regulations for listed companies, by reducing the Government of India's (GoI) ownership to below the stipulated 75 percent minimum public shareholding threshold, from 79.86 percent," it said.