Indian Bank Q4 Results Review - Steady Quarter; Healthy Provision Buffers: Dolat Capital

"NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Indian Bank reported a healthy quarter with net interest income growth of 9% YoY, stable net interest margin at 3.44% (+3 basis points QoQ), sharp decline in slippages to ~1.1%, and low credit costs at 1%, aiding return on asset of 1.15% despite pension related provisions. Robust loan growth at 6% QoQ (led by retail, corporate and agri gold) and industry best [provision coverage ratio at 89% were other key positives.The bank continues to hold higher standard provision buffers relative to peers at ~90 bps, after factoring 15% PCR against restructured book and 40 bps of general provisions. Even as NIM moderate, operating leverage and moderation in credit costs should aid stable RoAs over FY25/26E at 1.1%.We raise our FY25/26E earnings estimate by 9% each, mainly driven by lower opex assumptions. Maintain ‘Accumulate’ rating with revised target price of Rs 610 (Rs 580 earlier), valuing at 1.25 times FY26E price/adjusted book value against return on asset/return on equity of 1.1%/16%. The stock currently trades at 1.1 times FY26E adjusted book value. Indian Bank remains our preferred play in the public sector bank space..Click on the attachment to read the full report:.Indian Bank Q4 Results: Net Profit Jumps 55% To Rs 2,247 Crore.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Indian Bank Q4 Results Review - Steady Quarter; Healthy Provision Buffers: Dolat Capital

Asset quality strengthened with ~50 bps sequential decline in GNPA ratio to 3.95%, low slippages at 1.05%, slight rise in PCR to 89.5%

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Indian Bank Q4 Results Review - Steady Quarter; Healthy Provision Buffers: Dolat Capital

Asset quality strengthened with ~50 bps sequential decline in GNPA ratio to 3.95%, low slippages at 1.05%, slight rise in PCR to 89.5%

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