SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

INVESTMENT INSIGHTS

Check Before You Invest : Indian Bank

BSE: 532814 NSE: INDIANB ISIN: INE562A01011
  |   Sector:  BFSI   |   Industry:  Bank - Public

Snapshot

Q.1 Which industry/sub-sector does Indian Bank belong to?
Indian Bank belongs to the BFSI sector, operating specifically within the Bank - Public segment.
Q.2 Is Indian Bank a good quality company?
Indian Bank is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Indian Bank undervalued or overvalued?
Indian Bank appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Indian Bank a good buy now?
Indian Bank is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 How fast has the bank grown its book (total assets)?
NII growth for the business was 8.2% for FY-2025. This figure is below the 5 year historic median growth rate, indicating that the bank is growing at a slower rate than it achieved in the past. Over the past 5 years its NII has grown at a CAGR of 27.1%.
Q.2 How does the current net interest margin (NIM) compare to its 5 year median?
Net interest margin (NIM), which is difference between the rate of interest earned on assets and the rate of interest paid on liabilities was 2.95% , in line with its 5 year median level. NIM has increased by 2.95% over the last 5 years.
Q.3 How does the pre-provisioning operating profit margin (PPOP) compare to its 5 year median?
Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, was 7.82%, above its 5 year median level. PPOP margin has grown by -4.09% over the last 5 years.
Q.4 How does the Return on Assets (RoA) compare to its 5 year median?
The RoA for the bank was 1.3% , above its 5 year median level. RoA has grown by 0.8 basis points over the last 5 years.
Q.5 How well does the bank manage its operating costs?
For every 100 Rupees earned , the bank incurs a cost of Rs.45.8 . This is lower than its 10 year historic median level of Rs. 46.25 . The business has deteriorated its cost management.
Q.6 How much return does the business generate on shareholders’ money?
Return generated on the shareholders’ money is 18.5% which is higher than its 10 year historic median of 9.95% . Meaning that the business is generating more return for its shareholders than it did in the past.
Q.7 How much capital does the bank have available to absorb losses?
The minimum capital adequacy ratio (CAR) which banks are needed to maintain is 9%. This bank currently maintains a CAR of 0%.
Q.8 What is the bank’s asset quality like?
The current Gross Non Performing Assets ratio, the loans which are overdue by more than 90 days, is 3.09 % , above its 5 year median level. And the Net Non Performing Assets ratio, which is GNPA minus provisions made for bad loans, stands at 0.19 % - indicating deteriorating asset quality.

Peer comparison (industry-wise, mcap)

Q.1 How does its AUM growth compare to that of its peers?
While the 5 year median AUM CAGR for the industry is around 22.96% , AUM of the business is growing at a 27.09% CAGR. The AUM is growing faster the industry, meaning that the business is gaining market share.
Q.2 How do its profit metrics compare to those of its peers?
NIM and PPOP profit are in line with the industry 5 year median level. Whereas, RoA is below the industry 5 year median.
Q.3 How does its operating efficiency compare to that of its peers?
Cost to Income (46.25) and Cost to Income 5 years Industry (50.9) figures are below than the industry medians, while Current ROE (9.95) and ROE (14.7) 5 years Industry are below than the average. This shows that the business is positioned in the bottom quartile of the industry.

Valuation & price assessment

Q.1 Stock return of Indian Bank over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 25.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 25.2% 55.6% 44.8% 63.2%
Q.3 Valuation ratios of Indian Bank vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 11.01 8.44 9.28
Price to Book 1.74 0.33 1.11
Price to Sales 1.92 0.29 1.14
EV to EBITDA 6.91 3.60 4.98

Check more companies

1. SBI
2. Bank Of Baroda
3. Union Bank Of India
4. PNB
5. Canara Bank
6. Indian Bank
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×