Buy Indian Bank; target of Rs 650: Motilal Oswal

Motilal Oswal is bullish on Indian Bank has recommended buy rating on the stock with a target price of Rs 650 in its research report dated October 28, 2024.

Broker Research

October 29, 2024 / 11:29 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on Indian Bank

Indian Bank (INBK) reported 2QFY25 PAT of INR27.06b (36% YoY, 6% beat), driven by lower provisions and higher other income. NII grew 7.9% YoY (in line) to INR61.9b. Domestic NIM moderated 4bp QoQ to 3.49%. Net advances grew 13.2% YoY/2.3% QoQ, while deposits grew 8.2% YoY/1.8% QoQ. Consequently, the C/D ratio increased 43bp QoQ to 76.9%. The CASA ratio stood at 38.9%. Fresh slippages declined to INR13.8b vs. INR19.6b in 1QFY25. GNPA/NNPA ratios improved by 29bp/12bp QoQ to 3.48%/0.27%. PCR rose to 92.5%. We fine tune our earnings estimates and expect the bank to deliver RoA/RoE of 1.2%/17.3%. Reiterate BUY with a revised TP of INR650 (1.2x FY26E ABV).

Outlook

We fine tune our earnings estimates and expect the bank to deliver RoA/RoE of 1.2%/17.3%. Reiterate BUY with a revised TP of INR650 (premised on 1.2x FY26E ABV).

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