Binod Kumar, the Managing Director and CEO of Indian Bank, predicts that the 3% net interest margins (NIM) currently enjoyed by Indian banks are unsustainable and will likely fall below 2.5% as India evolves into a developed economy. He emphasizes the necessity for banks to diversify their income streams, particularly through wealth management, which Indian Bank plans to establish in the second half of the year. Kumar also discussed the bank's strategy to raise ₹5,000 crore to meet the new Expected Credit Loss (ECL) norms, which are expected to impact the bank by ₹4,000-6,000 crore. He stated that the bank aims for credit growth of 11-13% for FY27, with a focus on increasing the share of retail loans from 21% to 25% and MSME loans from 16% to 20%. Additionally, Kumar highlighted the importance of retaining low-cost deposits and adapting to changing customer behaviors, indicating that the bank is exploring bond issuances and portfolio churn as strategies to maintain its competitive edge. He also addressed the potential for consolidation in the banking sector to enhance the global standing of Indian banks.