New Research Reports

We maintain our BUY recommendation on the stock.

Indian Bank (INBK) reported a 4QFY25 PAT of INR29.6b (up 31.6% YoY/ 3.6% QoQ; 4% beat), driven by lower provisions and higher other income. NII grew 6.2% YoY/flat QoQ (in line) at INR63.9b. NIM dipped 8bp QoQ to 3.37% during the quarter.

State Bank of India (SBIN) reported a 4QFY25 PAT of INR186.4b (in line) with robust treasury gains offsetting higher opex and provisions. NII grew 3% YoY to INR427.7b (in line). NIM stood at 3.0% (1bp QoQ dip) with domestic NIM holding stable at 3.15%.

Kotak Mahindra Bank (KMB) reported in-line healthy PAT at Rs35.5bn/2.2% RoA, aided by higher other income and partly offset by higher provisions – such provisions were for further shoring-up PCR closer to that of large peers at 78% and AIF provisions (Rs1bn).

SBI posted a slightly soft quarter, as credit growth moderated to 12.4% YoY due to pre-payments in the corporate book, while higher opex (staff cost + deposit insurance) and provisions (std assets + investment + PLI incentive) caused a 5% earnings miss, with PAT at Rs186bn/1.1% RoA.

Kotak Mahindra Bank (KMB) reported a standalone 4QFY25 PAT of ~INR35.5b (6% miss on MOFSLe), because of higher provisions (to shore up PCR, partly due to AIF provisions of INR560m). Consol. PAT stood at INR49b (5% QoQ growth and 8% YoY decline) in 4QFY25.

Indian Bank reported healthy credit growth at ~11% YoY/5.3% QoQ, but NIMs retraced to 3.4% levels (similar to Q2) due to impact of recent policy rate cuts. However, higher NPA recoveries/PSL fees and lower provisions led to a 4% beat on PAT at ~Rs29.6bn and peer-best RoA at 1.4%.

Q4 numbers were a mixed bag. NII at Rs. 42,775 crore (in line) grew by 3% y-o-y/ 3% q-o-q. NIMs were stable, declined marginally by 1 bps q-o-q to 3.0% although outlook on NIMs remains negative. Core fee income growth was healthy at 13% y-o-y/ 36% q-o-q.

Q4FY25 numbers were weak. NII, at Rs. 7,284 crore (marginally below estimates), grew by 5% y-o-y/1% q-o- q. Net interest margin (NIM) was broadly stable q-o-q, improved by 4 bps q-o-q to 4.97% benefiting from the lower day count in Q4 although outlook on NIMs remains negative.

MASFIN’s 4QFY25 PAT grew ~19% YoY to INR808m (in line). FY25 PAT rose ~23% YoY to INR3.1b. Net total income was up 34% YoY to INR2.3b (5% beat), while opex at INR744m grew ~34% YoY (in line). PPoP stood at INR1.5b (5% beat) and grew 35% YoY.