We are adequately funded: Indian Bank

Public sector Indian Bank today said it is adequately funded and will meet its capital requirements through internal accruals.
Hailing infusion of Rs 22,915 crore capital into 13 PSU banks by the Centre as an "intelligent move", Indian Bank Managing Director and CEO Mahesh Kumar Jain said it would help the lenders to focus on credit growth.
"The proposal to infuse capital in public sector banks by the Central government is an intelligent move. While 75 per cent has been released now, the remaining 25 per cent will be based on performance and efficiency of the bank. That is very important. The move will help banks to focus on their credit growth," he told PTI.

Replying to a question, he said Indian Bank was not part of the capital infusion beneficiaries as it is "very well capitalised".
"Indian Bank is very well capitalised and we never requested the government to infuse capital. Our capital adequacy ratio is 13.20 per cent while Tier I Capital is 12.08 per cent. Common equity is 11.68 per cent," he said.
Government today provided Rs 22,915 crore capital to 13 public sector banks including State Bank of India, Punjab National Bank and Indian Overseas Bank to enhance their lending operations and enable them to raise more money from the market.

On the outlook for the current financial year, Jain said, "I think for the industry as a whole the credit growth is likely to be around 9-10 per cent. For Indian Bank, we are expecting it around 11 per cent during this financial year."

"Our focus will be on retail and MSME (micro, small and medium enterprises). Demand is also there in retail. But on corporate side, we will not be aggressive. Our asset quality is protected.
"For the financial year 2016-17, we are expecting growth of 10-11 per cent," he said.
To a query on expansion plans, he said the bank is planning to open 150 branches during this financial year.

"Last year we opened about 158 branches. This year we are expecting about 150 branches," he added.