Indian Bank share price target

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.

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 consciously slowed down credit growth in 3Q to ~11% YoY to protect its margins, which manifested via a 6bps QoQ improvement in NIM to 3.45%, defying industry trend.

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.

Indian Bank (INBK) reported 2QFY25 PAT of INR27.06b (36% YoY, 6% beat), driven by lower provisions and higher other income.

PSBs, including Indian Bank, have seen a correction in the recent past amid concerns around slowing growth (so also banking system) and peaking RoAs.

Indian Bank (INBK) reported 1QFY25 PAT of INR24b (41% YoY, 9% beat), driven by lower provisions (as the bank reversed INR970m on account of the sale of stressed assets in 1Q).

Indian Bank yet again posted a strong all-around performance, delivering inline PAT at Rs22.5bn/1.2% RoA, on the back of healthy margins (up by 4bps QoQ to 3.44%) and steady improvement in asset quality, with GNPA ratio down to 4%/NNPA to industry-low of 0.4%.