Shares of Indian Bank rallied in early trade on November 25 to rise by over 7% after Financial Services Institutions Bureau (FSIB) recommended Binod Kumar for the post of CEO and MD.
As many as 15 candidates were interviewed for positions of the top job at various PSU banks on November 24, the FSIB said in a statement, before announcing Kumar for the top job at Indian Bank.
The term of current CEO and MD Shanti Lal Jain is scheduled to end on December 31.
During the earnings call for the September quarter, the bank had acknowledged the need to meet significant growth targets in the second half of FY25. Despite challenges, the bank said it is optimistic of asset quality improvements and improving collection efficiency, will focus on profitable growth, going forward. For the first half of the fiscal, the bank has sanctioned over Rs 32,000 crore in loans, higher than last financial year.
The banks' Gross NPA has reduced from 3.77% to 3.48% in September quarter, while net NPA fell from 0.39% to 0.27%, compared to a year ago. As much as 91-92% of the banks' transactions now done digitally, Indian Bank informed, at over Rs 79,000 crore, higher than 172% on year.
The bank has a market capitalisation of over Rs 76,000 crore. So far this year, shares of Indian Bank are higher by 35%.
In September, the state-owned bank had approved raising of Rs 5,000 crore through long-term infrastructure bonds, to finance projects. Indian PSU banks have been raising funds via infrastructure bonds in the past few months.
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