Indian Bank Restricts Staff From Participating In Conclaves, Seminars, Felicitations Until Mar 31

Indian Bank, a public sector lender, has issued directives to its senior employees across circles, instructing them to refrain from organising business conclaves, seminars or felicitation functions until 31 March.

An internal circular, reviewed by a media house, issued on 5 January outlined the instructions from the top management. It emphasised a focus shift solely towards the bank's business parameters, instructing a halt on campaigns with channel partners and local training programmes for field personnel until 31 March 2024.

The circular stressed strict compliance with these directives, warning of severe consequences for any deviation from these guidelines, without specifying any explicit reasons behind these instructions. However, a query sent to the bank for clarification remained unanswered at the time of drafting this report.

Previously, on 2 January, the State Bank of India (SBI), the largest public sector lender, also issued similar instructions to its senior employees, prohibiting business conclaves, seminars or felicitation functions until 31 March 2024.

In the July-September quarter, Indian Bank reported a 62 per cent year-on-year surge in net profit, attributing this growth to retail loan expansion and reduced provisions, although other income growth was limited due to a decline in foreign exchange fees. The net profit rose to Rs 1,988 crore in September 2023 from Rs 1,225 crore a year earlier.

Total advances for Indian Bank increased by 12 per cent to Rs 4.92 lakh crore in September, primarily driven by a 14 per cent surge in retail loans and a 16 per cent growth in agriculture advances. Retail, agriculture, and MSME sectors constituted 62 per cent of the bank's loan portfolio, witnessing notable growth rates in home loans (13 per cent), auto loans (36 per cent) and personal loans (49 per cent).

S&P Global, in a report on 22 December, projected a 13-14 per cent loan growth for Indian Bank in the next two fiscal years, predominantly propelled by retail, agriculture, and micro, small and medium-sized enterprises (MSMEs).

The agency also highlighted the positive impact of the bank's recent equity fundraising, stating that it would enhance the bank's capital reserves and bring it in line with SEBI regulations by reducing the Government of India's ownership below the stipulated 75 per cent public shareholding threshold from the current 79.86 per cent.