New Research Reports

Improved operating performance and moderate provisions led to Indian Bank’s strong profitability, with RoA up 6bps q/q to 1.39%. Headline asset quality and PCR improved. Ahead, we expect slippages to be modest. With stress from the legacy book recognised, the focus now shifts to profitability.

Union Bank of India (UNBK) reported 3QFY25 PAT of INR46b (28.2% YoY, 27% beat), led by lower provisions and higher-than-expected other income.

Despite continued contraction in margins due to lower loan yields/other interest income, and higher provisions, Canara Bank posted in-line earnings with PAT at Rs41bn/1% RoA, mainly aided by higher other income (especially treasury gains/recovery from written-off loans).

Canara Bank (CBK) reported 3QFY25 standalone PAT at INR41b (12.3% YoY growth, in line) because of higher other income, partly offset by lower NII and higher provisions.

Top Pick in the Banking Sector

SBI is expected to sustain its steady performance in terms of growth and profitability in the near to medium term. Asset quality is holding up well and the portfolio is still not showing worrying signs, including unsecured retail loans despite the slowdown in growth.