After getting approval, Indian Bank is working on floating a wholly-owned subsidiary with capital infusion of Rs 10 crore.

The state-run bank expects the subsidiary to commence operations in the next financial year. It would largely focus on back-office processing, collection, sales and marketing.

"Around a week back, we got the financial approval. It will be a wholly-owned subsidiary. We will be putting Rs 10 crore as capital and we are in the process of recruiting people at the top level like CEO and CTO," Indian Bank managing director and CEO Shanti Lal Jain told reporters.

The subsidiary will focus on sales and marketing, collection and recovery process.

"There are many works that we are doing. Call centre work, already we are in the process of recruiting people. Maybe in the next financial year, it will be in operation. The subsidiary will be our feet on the street for things like collection and recovery," Jain said.

For the fiscal third quarter ended December, Indian Bank reported a 52% year-on-year jump in net profit to Rs 2,119 crore in the October-December 2023 quarter, on the back of a rise in core income and a reduction in bad loans.

In the year-ago period, the bank earned a net profit of Rs 1,396 crore.

Jain said the lender has earmarked Rs 200 crore towards upgrading cyber security over the next three years.