New Research Reports

We maintain our BUY recommendation on the stock.

PAT beat our estimates by 5% mainly aided by govt-guaranteed SRs; return ratios stay steady with RoA/RoE of 1.1/17.3% in FY25

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%.

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.

SBI saw a decent quarter; while core PPoP beat PLe by 11.3% due to better fees and TWO recoveries, asset quality was soft as provisions were higher at 66bps (PLe 25bps) since (1) write-offs/ageing provisions were more and (2) strong TWO recovery and SR reversal (Rs39bn) provided leeway to front load credit costs. Credit growth is guided to be above system in FY26E; we are factoring a 12% CAGR over FY25-27E. Opex for FY25 was flat at Rs1.18trn due to 9.7% decline in staff cost. For FY26, bank has guided a cost to income of 50-51% with...

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%.

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.

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.

Black & White

Underpromise, overdeliver