Indian Bank share price target

Elevated slippages & recognition of partial exposure of IL&FS; as substandard led to asset quality deterioration as GNPA ratio increased ~30 bps QoQ to 7.46%. Total IL&FS; exposure was at | 1715 crore out of which | 950 crore has been recognised as NPA while the remaining | 765 crore is standard. The bank has provided | 250 crore for the exposure. With elevated slippages provisions surged 152% YoY to ~| 974 crore Business traction remained muted as advances growth tapered down...

25 January 2019 INBK reported PAT of INR1.5b, significantly below our estimate of INR3.2b due to lower other income of INR4.4b (25% miss). NII grew 6% YoY (-1% QoQ) to INR17.2b (6% below our estimate) due to higher interest reversals of INR1.8b. Margins shrank 9bp QoQ to 2.88% in the quarter. Fee income declined 10.2% QoQ to INR2.6b, while forex income was also down 8% QoQ. This, along with treasury profits of INR575m, led to a -19%/ 4% YoY/QoQ decline in other income. Loan book grew 15.4% YoY to INR1.

Indian Bank (IB) reported NII of INR 17.3bn (12% y-o-y & -4% q-o-q) led by loan book growth of (19% y-o-y & 5% q-o-q) to INR 1.7bn. Margins for the quarters stood at 2.97% (12bps y-o-y & -17bps q-o-q). Weak treasury gains led to decline in other income to INR 4.3bn (-40% y-o-y & -3% q-o-q) and PPOP income of INR 11.9bn (-13% y-o-y & -8% q-o-q). Elevated provision of INR 10bn (35% y-o-y & -2% q-o-q) resulted in lower PAT of INR 1.5bn (-67% y-o-y & -28% q-o-q). GNPA / NNPA stood at 7.2% / 4.2% for the quarter respectively. Asset Quality disappoints; PCR declines by 356bps q-o-q to 61%. Asset quality deteriorated on a sequential basis with GNPA / NNPA in absolute terms stood at INR 123.3bn / 70.6bn (4% / 18% q-o-q)...

NII increased to Rs. 1806.99 Cr in Q1FY19 compared to Rs. 1637.72 Cr in Q4FY18. Indian Bank Q1FY19 results Comment

ff The Bank expects improvement in asset quality led by decline in gross NPA ratio to 6% and net NPA ratio to <3% by FY19-end from current levels of 7.4% and 3.8%, respectively. Maintaining that the worst of NPA recognition is over, the Management expects a substantial...

Indian Bank's gross NPA surged by 25% QoQ and 21.5% YoY to Rs120bn in 4QFY18 led by accelerated NPA recognition from loan under the RBI's different restructuring schemes owing to one-time impact of February 12th circular. Resultantly, the Bank's provisioning expenses spiked by 91.6% YoY and 68.4% QoQ to Rs15.5bn. Further, the Bank witnessed muted growth in NII (+18.3% YoY & 0.9% QoQ) owing to higher interest reversal led by sharp rise in fresh slippages. Thus, the Bank reported subdued pre-provisioning profit (+8.7% YoY and -3.8% QoQ), which along with higher provisioning led to 58.7% YoY and 56.5% QoQ decline in reported PAT to...

INBK reported a loss before tax of INR3.8b, as provisions were elevated due to high slippages from the RBI's revised stress asset guidelines. However, tax write-backs led to PAT of INR1.3b (60% miss). Provisions included ~INR540m toward NCLT exposures, INR3.7b toward accounts slipped due to the RBI's revised stressed asset guidelines, and INR1.02b toward MTM losses. NII grew 18% YoY to INR16.4b (2% miss), led by 23% YoY loan growth, with flattish margin (NIM at 2.84%), despite interest reversals of INR320m. NII growth was partially offset by lower other income (-16% YoY due to an 85%...

Indian Bank has delivered in line operating performance in 3QFY18 driven by (a) sharp growth in NII (+30.2% YoY & +5.1% QoQ) aided by 34bps YoY improvement in domestic NIMs to 2.9%; (b) stellar business growth in Retail (+34.3% YoY & +6.2% QoQ), MSME (+34.9% YoY & +4.6% QoQ) and domestic corporate (+15% YoY & +7.9% QoQ) segments; and (c) a strong 27.6% YoY growth in core fee income led by higher commission, exchange and brokerage. However, PAT declined by 18.9% YoY and 32.9% QoQ to Rs3.03bn owing to sharp surge in provisioning expenses (+70% YoY & +23.3% QoQ to Rs9.2bn) led by higher provisioning towards MTM loss on non-HTM bond portfolio (Rs4.7bn in 3QFY18 vs. Rs388mn in 2QFY18 & Rs12mn in 3QFY17). Led...

INBK reported core operating profit (excl. treasury gains) growth of 55% YoY to INR 11.3b. However, PAT of INR3b was 38% below estimates, as provisions of INR9.2b were above estimates (included INR4.7b of provisions for MTM losses). NII grew 30% YoY to INR16.2bn (6% above estimate) led by 22% YoY loan growth and 3bp QoQ improvement in global margins. NII growth was partially offset by other income (8% YoY decline led by 74% decline in treasury gains of INR0.8b). C/I ratio rose sharply by 520bp QoQ to 44.3% mainly led by decline in other income. PPoP growth thus stood at 18% YoY; however, high provisions led to decline in PAT by 19% YoY to INR3b.