Please refer to important disclosures at the end of this report
1
Indian Bank is a front runner in specialized banking and is a mid-sized PSU
bank. In previous quarter, Indian Bank delivered healthy set of numbers
compared to its peers. Going forward, the management maintains its stance
shifting focus towards the SME and retail segments as it is relatively healthy and
has less asset quality risk, especially in the current environment. Within public
sector banks, it has done the best so far especially when one looks at the fresh
slippages numbers (`825crore Q1FY17 vs `3,387crore Q4FY16) which has seen
an improvement from the last quarter were as asset quality has also improved a
lot. Net interest margin touched 2.47% for quarter ended June 30, 2016 as
against 2.36% for the quarter ended June 30, 2015 and 2.38% for the quarte
r
ended March 31, 2016. Healthy pre-provisioning profit growth of 27% YoY and
lower provisioning expenses enabled better-than-expected profitability for the
bank. Further, lower slippages guidance of ~`2,500crore for FY17E would aid
in lower credit costs and higher earnings. Hence Buy.
BUY
CMP `227
Stock Info
Sector
Beta 1.4
Bloomberg Code
Shareholding Pattern (%)
Promoters 82.1
MF / Banks / Indian Fls 8.4
FII / NRIs / OCBs 7.0
Indian Public / Others 2.5
Abs. (%) 3m 1yr 3yr
Sensex (0.5) 4.6 31.5
Indian Bank 19.9 69.6 132.5
Banking
Market Cap (
`
cr) 10,910
52 Week High / Low 242/76
Avg. Daily Volume 114,117
Face Value (
`
)10
BSE Sensex 27,876
Nifty 8,626
Reuters Code INBA.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Indian Bank
Others | Banking
November 2, 2016
Indian Bank | Banking
November 2, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Indian Bank
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)