Time period given by analyst is six months when Indian Bank price can reach defined target.
Indian Bank, incorporated in the year 1907, is a banking company (having a market cap of Rs 17411.27 Crore).
Indian Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 11608.53 Crore, up 8.24 % from last quarter Total Income of Rs 10724.53 Crore and up .45 % from last year same quarter Total Income of Rs 11556.09 Crore. The bank reported net profit after tax of Rs 1259.82 Crore in latest quarter.
Investment Rationale
The brokerage expects Indian Bank to grow its loan book at 9% CAGR while NII and Net profit are expected to grow at 7.5% and 39.5% (due to lower base) CAGR respectively over FY21-23E. ROAA is estimated to improve to 0.8% in FY23E from current 0.6% in FY21 and RoE could rise to 12.4% from 9.9% in FY21. The brokerage expects healthy recoveries and upgrades in next two years. Asset quality trend of corporate and MSME would be the crucial monitorables. Most of the concerns arising out of pending writeoffs out of estructured/SMA accounts are already in the price. It has assumed higher recoveries and lower slippages going forward. NIMs may also start stabilizing around 3% level.
Promoter/FII Holdings
Promoters held 88.1 per cent stake in the company as of Sept 30, 2020, while FIIs held 0.8 per cent, DIIs 4 per cent and public and others 7.2 per cent.
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