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Informist, Wednesday, Nov. 6, 2024

--Indian Bank MD: No plans to raise retail term deposit rates in near term 
--Indian Bank MD: No plans to raise funds via AT-I, infra bonds in FY25 

By Kabir Sharma and Ashna Mariam George

MUMBAI – Indian Bank has no plan to hike rates on its retail term deposits in the near term, S.L. Jain, the managing director and chief executive officer, told Informist on the sidelines of Business Standard BFSI Summit. Currently, the bank offers retail term deposit rates in the range of 2.80-7.30%, including special deposits.

The bank is not planning to change its lending rates either, he said. On Saturday, the bank had announced a reduction in its Treasury bill-linked lending rates across all tenures effective Sunday. The Treasury bill-linked lending rates for tenures over three months to three years were reduced by 10 basis points to 6.55% and the same for tenures below or up to three months were reduced by 15 bps to 6.45%. 

Other rates, including benchmark prime lending rates, the base rate, and the marginal cost of funds-based lending rates were kept unchanged. The bank's base rate remains at 9.85% and benchmark prime lending rates remain at 14.10%. The bank's marginal cost of funds-based lending remains in the range of 8.25-9.00%, the bank had informed exchanges on Saturday. 

Currently, the bank is not looking to raise funds through additional tier-I bonds or infrastructure bonds, Jain said. The bank had last tapped the market with infrastructure bonds on Oct. 24, when it raised INR 50 billion through bonds maturing in 10 years at a coupon of 7.12%. The bank has not raised funds through additional tier-I bonds so far in 2024-25 (Apr-Mar). 

For the quarter ended September, the bank posted a net profit of INR 27.06 billion, up 36.2% on year, primarily due to a sharp fall in provisions. At 1319 IST, shares of the bank traded 0.6% lower at INR 573 on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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