PSU lender Indian Bank is in the process of launching a wholly-owned subsidiary primarily for back-office operations and a few other functions with a capital infusion of ₹10 crore.
“RBI has permitted us to start the subsidiary. We are now preparing to float the arm and are in the process of recruiting top leadership team members such as CEO, CTO, etc,” Shanti Lal Jain, Managing Director and CEO, Indian Bank, said here.
The subsidiary would largely focus on back-office processing, collections, recovery, sales and marketing, among other functions. It is likely to commence operations during the next financial year.
Jain also said the bank continued to witness a surge in digital transactions and the quantum of digital business stood at more than ₹52,000 crore during the December 2023 quarter. Of the total digital business, over ₹45,000 crore worth of digital transactions were accounted for by the RAM (retail, agriculture, and MSME) segment. The bank expects the digital business to touch ₹75,000 crore by the end of this fiscal.
The Chennai-headquartered bank has also set aside about ₹200 crore towards upgrading cyber security systems over the next few years.