Indian Bank Share Price in Focus; Eyes Partnerships for Insurance and Mutual Fund Ventures

Indian Bank is set to venture into the insurance and mutual fund sectors within the next 1.5 to 2 years, as per news report.  

The bank intends to form partnerships instead of establishing wholly owned subsidiaries. This strategic move is aimed at expanding its business portfolio and enhancing its service offerings. 

Partnership Approach for Insurance and Mutual Funds 

As per news report, Indian Bank's Managing Director and CEO, Binod Kumar, revealed that the bank is keen on entering the insurance and mutual fund businesses through joint ventures.  

The bank has not yet shortlisted any potential partners and will evaluate options based on valuation, due diligence, and regulatory compliance.  

Indian Bank ranks as the seventh-largest public sector bank in terms of assets and balance sheet, following State Bank of India and others with existing tie-ups or standalone subsidiaries in these sectors. 

Wealth Management Services Launch 

The Chennai-based bank is also preparing to introduce a separate vertical for wealth management services in the second half of FY27.  

To support this initiative, Indian Bank is in the process of hiring specialists to strengthen its team and service offerings. 

Strengthening Liability Franchise 

Indian Bank aims to bolster its liability franchise by mobilising approximately $2.4-2.5 billion through Foreign Currency Non-Resident (Bank) deposits.  

These funds have been utilised to retire bulk deposits, replace higher-cost overseas funds, and support credit growth.  

The bank's target is to maintain its current account savings account ratio at around 39%-40%. 

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Overseas Credit Market Deployment 

Of the $2.5 billion raised, around $2.3 billion has already been deployed in overseas credit markets, with depositors taking loans from GIFT City, Singapore, and Dubai.  

Indian Bank anticipates an overall credit growth of 14%-15%. The stable five-year deposit structure of FCNR(B) allows for consideration of corporate lending. 

Corporate Loan Pipeline and Liquidity Benefits 

Indian Bank has a corporate loan pipeline of approximately ₹60,000 crore, with demand in areas such as green finance, data centres, and logistics.  

FCNR(B) deposits offer liquidity coverage ratio benefits, as they are primarily in the five-year bucket, unlike bulk deposits that mature within 30 days to 1 year. The bank estimates a benefit of around 2-3 basis points. 

Indian Bank Share Price Performance  

As of September 18, 2026, at 3:30 PM, Indian Bank share price on NSE was closed at ₹839.80, down by 0.08% from the previous closing price. 

Conclusion 

Indian Bank is strategically planning to enter the insurance and mutual fund sectors through partnerships within 1.5 to 2 years. The bank is also set to launch wealth management services in H2 FY27. It aims to strengthen its liability franchise with $2.4-2.5 billion FCNR(B) deposits, supporting credit growth and maintaining a current account savings account ratio of 39%-40%. 

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