Indian Bank, incorporated in the year 1907, is a banking company (having a market cap of Rs 21434.04 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 30-09-2021, the company reported a Consolidated Total Income of Rs 11513.70 Crore, down -.82 % from last quarter Total Income of Rs 11608.53 Crore and down -2.40 % from last year same quarter Total Income of Rs 11796.58 Crore. The bank reported net profit after tax of Rs 1126.11 Crore in latest quarter.
Investment Rationale
Indian Bank’s Q2 FY22 saw improved profitability, with RoA of 0.7% (up 41bps y/y) and much better collection efficiency. However, asset quality was under pressure with higher slippages stemming from the SREI exposure and sharp increase in the restructured book. The brokerage expects slippages to moderate substantially ahead as most of the stress has already been recognized. Besides, the brokerage expects the bank to gain market share from its peer banks. It retains positive view on it at a TP of Rs200, valuing it at 0.5x P/ABV on its FY24e book.
Promoter/FII Holdings
Promoters held 79.86 per cent stake in the company as of 30-Sep-2021, while FIIs owned 2.41 per cent, DIIs 10.52 per cent.
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