Indian Bank share price target

Asset quality ratios continued to improve, with the GNPA/NNPA ratio declining 43bp/54bp QoQ to 9.13%/2.72%, while PCR increased 406bp QoQ to 72.2%. The bank carries 100% PCR on SREI Infra, while it has a 15% provision on a retail account where it has exposure of INR9b. We revise our credit cost and tax assumptions and expect INBK to deliver FY24E RoA/RoE at 0.8%/14.0% by FY24E. Maintain Buy. PPoP grows 16% YoY; slippage moderates further to 3.1% (annualized) INBK reported 3QFY22 PAT at INR6.9b (34% YoY growth), supported by...

Background: Indian Bank features among the mid-sized banks in the public sector space. As of 2QFY22, the bank had business of about 9.2tn operating through a network of 5,759 branches. Prior to amalgamation with Allahabad bank, Indian Bank's footprint was largely skewed towards the southern states of Tamil Nadu, Karnataka, Andhra Pradesh and Kerala. Now the combined entity has a stronger presence in Central and Eastern states of India too. With RoA of ~0.75%, the bank features amongst the most profitable banks in the PSU space. The bank has...

INBK reported a mixed 2QFY22, with weak NII and elevated provisions affecting PBT growth. However, net tax reversals aided earnings beat. On the other hand, asset quality trends were largely stable. Total recovery from the DHFL resolution stood at INR6.1b, which was mainly utilized towards creating provisions on one large corporate account (SREI Infra). On the business front, loan growth was impacted on account of a decline in the Corporate portfolio (5% YoY decline), with a strong sequential recovery in the Retail and MSME segment....

Non-interest income to drive growth; ROA/ROE improvement by FY23E Indian Bank with its healthy liability franchise, low cost of funds and compelling valuations has now begun to witness synergies post its merger with Allahabad Bank. The Bank offers a wide range of services including foreign currency banking and specialised overseas branches in Chennai, Bangalore and Mumbai exclusively handing foreign exchange transactions. The bank has different...

Background: Indian Bank features among the mid-sized banks in the public sector space. As of 1QFY22, the bank had business of about 9.2tn operating through a network of 5,809 branches. Prior to amalgamation with Allahabad bank, Indian Bank's footprint was largely skewed towards the southern states of Tamil Nadu, Karnataka, Andhra Pradesh and Kerala. Now the combined entity has a stronger presence in Central and Eastern states of India too. With RoA of ~0.75%, the bank features amongst the most profitable banks in the PSU space. The bank has...

INBK reported healthy operating performance supported by modest opex and higher other income, even as business growth remains muted. NIM, however, expanded 51bp QoQ to 2.85% (higher slippages in 4QFY21). Provisions continue to remain elevated, despite the bank reporting healthy RoA/RoE of ~0.8%/15% in 1QFY22. Asset quality was largely stable even as slippages came in elevated (~5% annualized). Collection efficiency declined in 1QFY22, while witnessing improving trends from Jul'21. Restructuring book stands ~2.7% of loans,...