Motilal Oswal's research report on Indian Bank
Indian Bank (INBK) posted a steady quarter with net profit rising 3% YoY aided by healthy NII and lower opex (as 4QFY22 had a one-off impact of pension liability). NIM expanded while business growth showed healthy traction. Asset quality ratios improved; however, slippages and restructured book at 4.2% of loans remained elevated. We increase our FY23E/FY24E PAT by ~12%/14%, respectively, as we revise our other income, opex and provisioning assumptions. We estimate FY24E RoA/RoE at 0.9%/14.7%, respectively.
Maintain BUY with a revised TP of INR210 (premised on 0.6x FY24E ABV).
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