Indian Bank share Price Today

The bank disclosed that, on incremental sanctions since Mar-20, the new NPA creation is 0.35%. Furthermore, SMA-2 in the corporate book (45% of advances) is 0.1% and the restructured book has no large lumpy account (max single account exposure just Rs1.8bn). Recovery momentum is gaining traction with guidance for F23 at Rs320bn or ~4% of loan book. The bank needs to take additional 2.8% credit cost to mark down net NPL to 1%. This implies that credit cost normalization is likely one year out (2H24/ F25). However, given low net slippage, the market could well price that ahead of time

Growth getting better but lagging peers – Incrementally, while loan growth has picked up to 13% y/y, it has lagged SBI/BOB at nearly 20%. The bank’s guidance for 10% operating profit growth however looks conservative given sharp NIM improvement seen in 2Q (+21bps q/q). On core PPOP/assets, the bank’s metrics are below BOB and slightly ahead of SBI as domestic NIMs have now improved to 3.1%.

Indian Bank announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

• Net Profit up by 55% YoY at Rs 2,247 crore in Q4FY24 from Rs 1,447 crore in Q4FY23
• Profit Before Taxes up by 111% YoY at Rs 3,057 crore in Q4FY24 from Rs 1,452 crore in Q4FY23
• Operating Profit improved by 7% YoY to Rs 4,305 crore in Q4FY24 from Rs 4,016 crore in Q4FY23
• Net Interest Income increased by 9% YoY to Rs 6,015 crore in Q4FY24 from Rs 5,508 crore in Q4FY23
• Fee based income grew by 6% YoY to Rs 970 crore in Q4FY24 from Rs 914 crore in Q4FY23
• Return on Assets (RoA) up by 33 bps to 1.15% in Q4FY24 from 0.82% in Q4FY23
• Return on Equity (RoE) increased by 358 bps to19.06% in Q4FY24 from 15.48% in Q4FY23
• Yield on Advances (YoA) up by 64 bps to 8.81% in Q4FY24 from 8.17% in Q4FY23
• Yield on Investments (Yol) increased by 26 bps to 6.88% in Q4FY24 from 6.62% in Q4FY23
• Gross Advances increased by 13% YoY to Rs 5,33,773 crore in Q4FY24 from Rs 4,73,586 crore in Q4FY23
• RAM (Retail,Agriculture & MSME) advances grew by 14% YoY to Rs 3,09,918 crore in Q4FY24 from Rs 2,72,679 crore in Q4FY23
• RAM contribution to gross domestic advances is 62.21%. Retail, Agri & MSME advances grew by 15%, 19% and 6% YoY respectively. Home Loan (Including mortgage) grew by 11% YoY, Auto Loan by 49% YoY and Personal Loan by 10% YoY
• Priority sector advances as a percentage of ANBC stood at 43.82% at Rs 1,78,527 crore in Q4FY24 as against the regulatory requirement of 40%
• Total Deposits increased by 11% YoY and reached to Rs 6,88,000 crore in Q4FY24. CASA deposit grew by 8%, savings deposit grew by 7% and Current deposit by 9% YoY
• Domestic CASA ratio stood at 42.31% as on Q4FY24
• CD ratio stood at 77.58% as on Q4FY24
• GNPA decreased by 200 bps YoY to 3.95% in Q4FY24 from 5.95%, NNPA reduced by 47 bps to 0.43%from 0.90% in Q4FY23
• Provision Coverage Ratio (PCR, including TWO) improved by 252 bps YoY to 96.34% in Q4FY24 from 93.82% in Q4FY23
• Slippage Ratio contained to 1.11% in Q4FY24 in comparison to 2.43% in Q4FY23 i.e improvement of 132 bps YoY
• Capital Adequacy Ratio stood at 16.44%. CET-I improved by 63 bps YoY to 13.52%
• Tier I Capital improved by 55 bps YoY to 14.03%

FY24 Financial Highlights:

• Net Profit up by 53% YoY to Rs 8,063 crore in FY24 from Rs 5,282 crore in FY23
• Profit Before Taxes up by 85% YoY at Rs 10,951 crore in FY24 from Rs 5,915 crore in FY23
• Operating Profit increased by 10% at Rs 16,840 crore in FY24 from Rs 15,271 crore in FY23
• Net Interest Income grew by 15% to Rs 23,274 crore in FY24 from Rs 20,225 crore in FY23
• Return on Assets (RoA) increased by 30 bps to 1.07% in FY24 from 0.77% in FY23
• Return on Equity (RoE) up by 451 bps to 19.24% in FY24 from 14.73% in FY23
• Domestic Net Interest Margin (NIM) increased by 13 bps to 3.54% in FY24 from 3.41% in FY23
• Yield on Advances (YoA) up by 96 bps to 8.72% in FY24 from 7.76% in FY23
• Yield on Investments (Yol) increased by 35 bps to 6.80% in FY24 from 6.45% in FY23
• Cost to Income Ratio is 45.92% for FY24

Result PDF