Indian Bank plans 100 branches and 2,500 hires as it shifts expansion west

The state-owned lender plans to add about 100 branches this financial year, prioritising central and western India, while hiring 2,500 employees. It is also targeting a gold-loan book above Rs 1.5 lakh crore.

— Source publishedSun, 30 Aug, 2026, 14:30 IST·First seen Sun, 30 Aug, 2026, 14:43 IST·Source ET Small Business

What happened

Indian Bank plans to open about 100 branches and hire 2,500 staff this fiscal, prioritising central and western India. The lender also targets a gold-loan book

Key facts

  • About 100 branches planned this year
  • 2,500 personnel to be hired
  • 15 branches inaugurated on August 15
  • 6,003 domestic branches as of June 30, 2026
  • 3 overseas branches
  • 41,875 employees as of June 30, 2026
  • Gold loan book target: over Rs 1.5 lakh crore
  • Current gold loan portfolio: around Rs 1.25 lakh crore
  • Gold loan segment expected to grow about 20%
  • RAM loans account for 65% of total loan book
  • Rs 200 crore bad-loan sale planned

Why this matters

Indian Bank’s western shift makes regional banks, branch networks and gold-loan capabilities in target markets strategically more relevant partnership or acquisition targets.

What to watch

  • Actual branch openings versus the 100-branch plan and the geographic split between central and western India.
  • Net new hires, employee productivity and branch-level deposit mobilisation.
  • CASA ratio, cost of deposits and deposit growth relative to system growth.
  • Gold-loan book growth, loan-to-value discipline, yields, delinquencies and auction losses.
  • Cost-to-income ratio and operating-profit trajectory during the expansion period.
  • Competitive branch and gold-loan responses from public-sector banks, private banks, NBFCs and dedicated gold financiers.
  • Prioritise branch locations near SME clusters, agricultural trade centres and high-gold-ownership catchments in Maharashtra, Gujarat, Madhya Pradesh and Rajasthan.
  • Deploy a material share of the 2,500 hires into relationship management, gold-loan processing, collections and digital-assisted branch roles.
  • Pair new branches with local deposit campaigns, gold-loan turnaround-time commitments and MSME credit acquisition.
  • Expand gold appraisal, custody, fraud-control and auction capabilities to support larger secured-loan volumes.
  • Use branches as hubs for digital onboarding and cross-selling of insurance, remittances, payments and retail credit.