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Yes Securities has buy call on with a target price of Rs 166. The current market price of Indian Bank is Rs 146.65. Time period given by analyst is one year when Indian Bank price can reach defined target.

Indian Bank, incorporated in the year 1907, is a banking company (having a market cap of Rs 18114.94 Crore).

Indian Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2021.

Financials

For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 11556.02 Crore, down -.77 % from last quarter Total Income of Rs 11645.82 Crore and up 7.75 % from last year same quarter Total Income of Rs 10724.53 Crore. The bank reported net profit after tax of Rs 1024.31 Crore in latest quarter.

Investment Rationale
Retail loans grew 6.3% QoQ, within which non-priority jewel loans grew 13.1% QoQ. Agri loans, MSME loans and corporate loans grew 3.3% QoQ, 1.8% QoQ and 1.1% QoQ, respectively. Wholesale loan growth has been subdued due to conscious decision not to deploy capital into low-yielding loans. Management expects a minimum loan growth of 8-10% in FY23. It maintains ‘Buy’ rating on INBK with a revised price target of Rs 166. It values the bank at 0.5x FY23 P/BV for an FY23E/24E RoE profile of 11.0/12.3%.

Promoter/FII Holdings
Promoters held 79.86 per cent stake in the company as of 31-Mar-2022, while FIIs owned 1.73 per cent, DIIs 11.12 per cent.

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