Indian Bank share price target

Indian Bank results were below expectation led by higher than expected NPA provisions. Revenuegrowthat11.4%yoycontinuedtoremainmoderateduetoongoingsluggishnessin NII led by subdued credit growth. Noninterest income grew at 40% YoY led by strong...

Background: Indian Bank features among the mid-sized banks in the public sector space, as of 3QFY15 the bank had business of about INR 2,822bn. The Bank operates through a network of ~2392 branches; Indian Bank's footprint is largely skewed towards the southern states of Tamil Nadu, Karnataka, Andhra Pradesh and Kerala. With RoA of ~0.7%, the bank features amongst the most profitable banks in the PSU space. Credit to agriculture constitutes ~18% of the loan book, while...

For the second straight quarter Indian Bank reported growth in excess of 50%. Earnings growth for Q1 FY10 was reported at 52% whilst it was 54% on the EPS front. Topline growth, however, was reported at a healthy 39% with contributions from both net interest income (NII) and non-interest income. Drop in provisioning charges increased contributed to a surge in profits before taxes while a higher a higher tax incidence cut into earnings growth. On a...