Indian Bank Q1 Review - Operating Performance Showing Recovery Signs: Motilal Oswal
A stack of Indian one-hundred rupee banknotes are arranged for a photograph at a bank in India. (Photographer: Dhiraj Singh/Bloomberg)

Indian Bank Q1 Review - Operating Performance Showing Recovery Signs: Motilal Oswal

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.

Motilal Oswal Report

Indian Bank reported healthy operating performance supported by modest opex and higher other income, even as business growth remains muted.

Net interest margin, however, expanded 51 basis point QoQ to 2.85% (higher slippages in Q4 FY21).

Provisions continue to remain elevated, despite Indian Bank reporting healthy return on asset/return on equity of ~0.8%/15% in Q1 FY22.

Asset quality was largely stable even as slippages came in elevated (~5% annualised).

Collection efficiency declined in Q1 FY22, while witnessing improving trends from July 2021.

Restructuring book stands ~2.7% of loans, while the high special mention account book (~7.6%) would keep asset quality under check.

Click on the attachment to read the full report:

Motilal Oswal Indian Bank Q1FY22 Result Update.pdf

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