Indian Bank's wholly-owned subsidiary will ensure on-ground money collection, recovery
Indian Bank will launch a wholly-owned subsidiary in India, backed by a capital infusion of Rs. 10 crore. It will focus on collection, sales, back-office processing, and marketing. According to Managing Director and CEO, Shanti Lal Jain, the subsidiary is expected to begin operations in the upcoming financial year. Jain stated, "It will be a wholly-owned subsidiary. We will be putting Rs. 10 crore as capital and are in the process of recruiting people at top level like CEO, CTO."
Subsidiary's focus and expected operations
The main objective of this new subsidiary is to concentrate on marketing and sales, collection, and recovery processes. Jain clarified that the subsidiary would not be as large as Indian Bank but would handle tasks such as "feet on the street for collection, recovery like that." The bank is already hiring people for call center roles, and the subsidiary is anticipated to be operational in the next financial year.
Digital transactions
During the October-December 2023 quarter, Indian Bank saw digital transactions rise to 87%, intending to achieve Rs. 75,000 crore in digital transactions for the current financial year. As of December 2023, the bank reached Rs. 52,000 crore. The bank is maintaining the projected growth rate of 10-12% in the current financial year, and claims to be "well capitalized."
Steps taken to improve cybersecurity
Jain revealed that Indian Bank has allocated Rs. 200 crore for enhancing cybersecurity over the next three years. He also described the steps taken to improve cybersecurity at the bank. He explained, "For banks' internal perspective - we have centralized servers, and have come out with new cyber system upgrading software through AI (Artificial Intelligence), ML (Machine Learning) driven."
