Indian Bank share price target

Global Deposits grew by (5.2%YoY, 3.1% QoQ) to INR 1836bn driven by growth in domestic deposits (5.9%YoY, 3.4% QoQ) to INR 1782bn. Growth was largely driven by increase in CASA base (33.5% YoY, 19.3% QoQ) due to the impact of demonetization...

Despite adverse operating environment, the Bank continues to deliver healthy performance on operating and assets quality front. Management is gradually infusing confidence through major changes in the operating structure, which has started yielding desired outcomes. It is relatively better placed as compared to its PSU peers in terms of managing the cleaning-up of current loan book effectively. Moreover, as it is adequately capitalized (Tier-I ratio of 12.2%), it would not need any adverse dilution below book value dilution in the near-term, which is a key positive for the longterm investors. Hence, we maintain our BUY recommendation on the stock with an...

ICICI Securities Ltd | Retail Equity Research Among mid-sized PSU banks, Indian Bank is well placed with superior fundamentals given its relative strength with strong low cost deposit (33.6%), ability to generate higher NIMs (2.64%) and healthy capital base (14.3%). With relatively lower exposure to stressed sectors and higher exposure to SEBs, which have been largely restructured, Indian Bank is better compared to peers in asset quality terms. Adequate capital (Tier-I 12.8%) will enable the bank to grow its balance sheet without any adverse dilution, which remains a key positive for long-term investors....

The Bank's Management is gradually infusing confidence through major changes in the operating structure, which has started yielding desired outcome. The Bank is relatively better placed compared to its PSU peers in terms of managing cleaning-up of current loan book effectively. Moreover, as it is adequately capitalized (Tier-I ratio of 12.8%), it would not need any adverse dilution below book value dilution in the near-term, which is a key positive for the long-term investors. Hence, we maintain our BUY recommendation on the stock with an upwardly revised Target Price of Rs286,...

ICICI Securities Ltd | Retail Equity Research PAT was up 9.7% YoY to | 405 crore, led by a better-than-expected operational performance (PPP up 37% YoY to | 1006 crore) NII growth was healthy at 18.3% YoY to | 1278 crore despite flat credit growth YoY to | 122563 crore. Margins improved 17 bps QoQ to 2.64%, the best number in the last several quarters. The margin increase was mainly led by a fall in cost of funds by 25 bps QoQ Other income also aided earnings as it grew 33.6% YoY to | 585...

Deposits increased by (1.1%YoY) to INR 1774bn. Term deposits declined marginally by 3%YoY, while CASA deposits grew by a healthy (11.5%YoY) led by growth in SA of (11.7%YoY). Growth in CA was noted at (10.7%YoY). Consequently the share of CASA was noted at 31.1% as of 1QFY17 as compared to 28.2% as of 1QFY16. Share of Bulk Deposits to Total Deposits...

with RoA at 0.6%m RoE of 8%. We maintain HOLD rating on the stock but vishal.narnolia@icicisecurities.com revise TP higher to | 190 (earlier | 91) as we raise our target multiple to...

Outlook and valuation: At a CAR of 13.2% (tier1 at 12.08%) Indian Bank is sufficiently capitalisedtofunditsneartermgrowth.Themanagementisalsotakingeffortsbyputting thrust on retail and SME to drive loan growth drivers in FY17, as demand from corporate loanswouldremainweak.Weexpectthetrendinslippagestoimproveasithasrecognised mostofNPAsinFY17andthebaggagefromexistingrestructuredloanbookwillnoterode theassetqualitysignificantly.WehaverevisedourearningsestimateforFY17andFY18by 32%and20%respectively,duetoimprovementinNIIandlowerNPAandhaverevisedour...

Strong core PPoP growth; Asset quality pressures likely to recede in FY17 Indian Bank (INBK) reported 1QFY17 PAT of INR3.1b (+43% YoY, 87% beat), led by strong core PPoP growth (+25% YoY) and lower-than-expected credit costs (1.3%). Slippages declined to INR8.3b (2.7% of loans, annualized) v/s INR29.2b in 4Q. GSL ratio stood at 12.0% v/s 11.6% in 4QFY16. Management expects the run-rate in...

8 Indian Bank reported net profit of Rs 845mn, marginally better than our muted expectation(Rs597mn)ledbytaxreversalofRs710mn. 8 Operatingperformancecontinued to remain weak due to tepid NIIgrowth led by yoy...