BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Indian Bank reported in-line operating metrics with flattish net interest income and 9% rise in pre-provision operating profit YoY.
Net interest margin at 2.89% increased marginally, benefitting from sharp reduction in cost of fund (19 basis points QoQ) despite elevated interest reversals and decline in cash-deposit ratio.
Sequential de-growth in advances of 1% was mainly owing to 7% sequential decline in corporate book.
Slippages at 4.4% were below expectations, despite the SREI group downgrade (Rs 18 billion exposure). Slippages mainly came from corporate (50%) and agri book (25%).
However, restructured book increased sharply to 5.7% of net advances against 3.2% in Q1 FY22 and are amongst the highest in industry.
55% of incremental restructurings are from retail, 75% of which are mortgages. Indian Bank has provided 10% against its restructured book.
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