Indian Bank plans overseas expansion in Malaysia, Indonesia and UAE; Q3 profit rises
State-owned Indian Bank has approved plans to open branches in Malaysia and Indonesia and set up a representative office in the UAE, subject to regulatory clearances. The bank reported a rise in Q3 FY26 profit and improvement in asset quality, while outlining growth targets for total business.
Board clears plans to widen international footprint
Indian Bank is preparing to expand its overseas presence, with plans to open new branches in Malaysia and Indonesia and to establish a representative office in the United Arab Emirates. The proposals have received board approval and will move forward subject to clearances, including regulatory permissions.
The move is aimed at tapping business opportunities linked to India’s diaspora and trade corridors, particularly in Southeast Asia and the Gulf region. A representative office in the UAE, typically, acts as a business development and relationship-building unit rather than a full-service branch that accepts deposits or lends at scale.
Financial performance: profit up, asset quality improves
Alongside its expansion plans, Indian Bank reported that its net profit rose in the quarter ended December 2025. Operating profit and net interest income also increased year-on-year, indicating steadier core earnings as the bank continues to grow its balance sheet.
The bank also flagged an improvement in asset quality, with the gross NPA ratio declining compared to the same period in the previous year. Lower NPAs can improve profitability over time by reducing provisioning pressure and by supporting stronger credit growth with better risk buffers.
Strategic intent: growth targets and new markets
The bank has set out a broader ambition to increase total business and strengthen its position in target segments. New international locations can support corporate clients operating across borders, facilitate trade finance and remittances, and deepen relationships with Indian businesses and professionals abroad.
For customers, overseas branches can translate into faster service for cross-border transactions, while for the bank, the key execution challenge will be navigating local regulatory requirements, building compliant operations, and scaling activity without taking on undue risk in unfamiliar markets.