New Delhi [India], September 5 : Indian Bank expects its business in Rajasthan to grow by around 30-35 per cent this fiscal, supported by strong credit demand, a favourable credit culture and low levels of non-performing assets in the state, MD & CEO Binod Kumar said in an exclusive interaction with ANI.
“In Rajasthan, my business growth is of 33 per cent, in which deposit growth is 27 per cent, advance growth more than 40 per cent,” Kumar said, adding that he expects the trend to continue. The bank currently has 157 branches in the state and plans to open around 20 more branches during the current fiscal, after adding 17 branches last year.
Kumar said the bank sees significant lending potential in retail, agriculture and the MSME segment. Real estate activity is also creating opportunities for retail lending, while areas such as Ganganagar offer considerable scope for MSME financing. The bank’s MSME business in Rajasthan is currently growing at around 33 per cent, he said.
A key factor supporting the bank’s expansion plans is Rajasthan’s credit culture and relatively low NPA levels. “Rajasthan's credit culture is very good. Here NPA percentage is less in Rajasthan. So, credit culture that gives us more confidence in lending in Rajasthan,” Kumar said.
At the broader level, Kumar said the Indian banking system is benefiting from stronger-than-expected economic growth. India’s GDP growth of 7.8 per cent has been reflected in credit demand, with overall bank credit growth at around 18-19 per cent, he said.
Importantly, he said banks have not seen the stress that was expected after tariffs were imposed in August 2025. “We are not seeing any sign of stress in any of the sector,” Kumar said, noting that the bank’s SMA percentage has almost halved compared with last year.
He also pointed to deposit growth of around 14-15 per cent, which has helped narrow the earlier gap between credit and deposit growth. Strong demand for FCNR deposits has provided an additional boost, with FCNR deposits reaching around $136 billion, according to Kumar.
He attributed the resilience to a combination of government policies and efforts by the RBI, banks and NRIs. “It is a combined effort of all. Our NRI, government, RBI, banks, combined efforts of all,” he said.