Indian Bank logs Rs 700 crore profit from PSL certificates sale

Indian Bank reported a profit of Rs 700 crore from the sale of Priority Sector Lending (PSL) certificates in the second quarter of FY24. The bank’s Managing Director and CEO, Shanti Lal Jain, highlighted that the sale of PSL certificates has become a significant revenue stream. The bank’s total income for the quarter stood at Rs 12,500 crore, with a net profit of Rs 1,225 crore. The sale of PSL certificates, which are issued to banks that fall short of their priority sector lending targets, has helped Indian Bank improve its profitability. The bank’s focus on digital transformation and cost optimization has also contributed to its strong financial performance. The profit from PSL certificates underscores the importance of innovative financial instruments in enhancing bank revenues.