Buy Indian Bank; target of Rs 290: Motilal Oswal

Motilal Oswal is bullish on Indian Bank recommended buy rating on the stock with a target price of Rs 290 in its research report dated November 05, 2022.

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November 09, 2022 / 17:59 IST

26 Aug, 2025 12:21

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Motilal Oswal's research report on Indian Bank

INBK reported a 2QFY23 PAT of INR12.3b (up 12% YoY; in line), supported by healthy NII growth and lower provisions. NII grew 15% YoY to INR46.8b (in line). Margin expanded by 10bp QoQ to 3.2%. NII/PPOP/PAT rose 14%/8%/ 7% YoY to INR92.2b/INR71.9b/INR24.4b in 1HFY23. Headline asset quality ratios continue to improve, with an 83bp/62bp QoQ reduction in GNPA/NNPA to 7.3%/1.5%. Slippages moderated to INR24.6b (~2.7% annualized). This, coupled with healthy recoveries and upgrades and write-offs, aided asset quality.

Outlook

We raise our FY23/FY24 PAT estimate by ~13%/7% as we build in lower provisions, backed by a better than expected asset quality. We expect a RoA/ RoE of 0.9%/15.4% in FY24. We maintain our Buy rating, with a revised TP of INR290 (0.8x FY24E ABV).
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