Motilal Oswal's research report on Indian Bank
Indian Bank (INBK) reported a PAT of INR17.1b (up 41% YoY; 6% beat), driven by lower provisions (15% lower than MOFSLe). NII grew 26% YoY (in line) to INR57b. Margins increased 2bp QoQ to 3.61%. GNPA/NNPA ratio improved 48bp/20bp QoQ to 5.5%/0.7%, supported by a decline in slippages to ~INR18.5b (~1.8% annualized). However, SMA book stands at 0.7% of loans. We raise our FY24E/25E earnings estimate by 9%/6% and we expect FY25 RoA/RoE to reach 1.1%/17.4%. We reiterate our BUY rating on the stock.
Outlook
8We increase our earnings estimate for FY24/25 by 9%/6% and estimate FY25 RoA/RoE at 1.1%/17.4% and reiterate our BUY rating with a revised TP of INR380 (0.8x FY25E ABV).
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