BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Indian Bank reported net interest income and pre-provision operating profit growth of 17% and 23% YoY respectively on an amalgamated basis, driven by lower slippages, higher treasury gains and lower other opex.
Moratorium levels for term loans at 20% as of July-end based on one unpaid monthly installment looks superior compared with peers. Based on two unpaid installments, the ratio stands at 7%.
Despite the 160 basis points erosion in common equity term (CET1) ratio owing to the amalgamation with Allahabad Bank, bank’s CET1 ratio at 10.3% as of Q1 FY20 remains the best amongst Public sector banks.
With low capital consumption (risk weighted asset/assets at 52%), the bank is not in need of any urgent capital raise in our view.
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