Check Before You Invest : Indian Bank

Q: Which industry/sub-sector does Indian Bank belong to?

Indian Bank belongs to the BFSI sector, operating specifically within the Bank - Public segment.

Q: Is Indian Bank a good quality company?

Indian Bank is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is Indian Bank undervalued or overvalued?

Indian Bank appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 9.43, Historic Median: 7.45. Price to Book, Current: 1.51, Historic Median: 1.25. Price to Sales, Current: 1.63, Historic Median: 1.26. EV to EBITDA, Current: 5.99, Historic Median: 3.62

Q: Is Indian Bank a good buy now?

Indian Bank is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of Indian Bank?

Indian Bank Total Income growth is 12.17% for FY-2025, which is below its 5-year CAGR of 23.85%, indicating slower growth.

Q: Return on Assets of Indian Bank?

Indian Bank Return on Asset is 1.3%, which is above its 5-year historical median of 0.8%, indicating improved earnings on assets. Efficiency & Key Metrics. NIM (%), Current: 2.95, Historic Median: 2.95. PPOP (%), Current: 13.88, Historic Median: 15.3. RoA (%), Current: 1.3, Historic Median: 0.8

Q: Return on Equity (ROE) of Indian Bank?

Indian Bank Return on Equity is 18.5% for FY-2025, which is above its 5-year historical median of 13%, indicating the business is making better use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Indian Bank?

Indian Bank Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 13.88% for FY-2025, which is below its 5-year median(15.3%), indicating decreasing margins.

Q: Net Interest Margin of Indian Bank?

Indian Bank Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 2.95% for FY-2025, which is in line with its 5-year median( 2.95%), indicating stable margins.

Q: Does its ROIC exceed its WACC?

Indian Bank return on invested capital (ROIC) is 37.42% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

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 multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Indian Bank undervalued or overvalued?

Indian Bank appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	9.43	7.45
Price to Book	1.51	1.25
Price to Sales	1.63	1.26
EV to EBITDA	5.99	3.62

Q.4 Is Indian Bank a good buy now?

Indian Bank is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NIM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth and Cost-to-Income ratio.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Indian Bank?

Indian Bank Total Income growth is 12.17% for FY-2025, which is below its 5-year CAGR of 23.85%, indicating slower growth.

Q.2 Return on Assets of Indian Bank?

Indian Bank Return on Asset is 1.3%, which is above its 5-year historical median of 0.8%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NIM (%)	2.95	2.95
PPOP (%)	13.88	15.3
RoA (%)	1.3	0.8

Q.3 Return on Equity (ROE) of Indian Bank?

Indian Bank Return on Equity is 18.5% for FY-2025, which is above its 5-year historical median of 13%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Indian Bank?

Indian Bank Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 13.88% for FY-2025, which is below its 5-year median(15.3%), indicating decreasing margins.

Q.5 Net Interest Margin of Indian Bank?

Indian Bank Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 2.95% for FY-2025, which is in line with its 5-year median( 2.95%), indicating stable margins.

Q.6 Does its ROIC exceed its WACC?

Indian Bank return on invested capital (ROIC) is 37.42% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Indian Bank?

Indian Bank Total Asset growth is 10.22% for FY-2025, which is below its 5-year CAGR of 23.11%, indicating slower growth.

Q.8 Cost to Income ratio of Indian Bank?

Indian Bank Cost to Income ratio which represents the cost incurred for every Rs.100 earned is 45.8% for FY-2025, is in line with its historical 5-year median of 46.9%, indicating stable cost management.

C: How strong is the bank’s capital position and asset quality?

Q.9 Capital Adequacy ratio of Indian Bank?

Indian Bank Capital Adequacy ratio (CAR) is 17.94% for FY-2025, which is above the regulatory requirement of 12%, indicating strong capital position.

Q.10 Asset Quality of Indian Bank?

Indian Bank Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 3.09% for FY-2025, which is below its 5-year median 5.95%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 0.19% which is below its 5-year median( 0.90%), indicating improving asset quality.

Ownership & governance

D: Promoter shareholding and pledge status of Indian Bank?

Q.1 Promoter shareholding and pledge status of Indian Bank?

Promoters hold 73.84% of the Indian Bank, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Indian Bank performance compare with that of its Peers?

Q.1 AUM Growth of Indian Bank vs Industry Peers?

Indian Bank AUM CAGR is 23.11%, compared to the 5-year industry median CAGR of 17.68%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NIM, PPOP, RoA) of Indian Bank vs industry peers

Indian Bank profit metrics are in line with the industry median level of 5.79%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NIM (%)	2.95	2.64
PPOP (%)	13.88	13.94
RoA (%)	1.3	0.8

Q.3 Operating efficiency of Indian Bank vs industry peers?

Indian Bank Cost to Income (45.7) is below the industry median of (49.7); while the current ROE (13) are below than the 5-year average Industry ROE (14.15). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NIM (%)	2.95	2.64
PPOP (%)	13.88	13.94
RoA (%)	1.3	0.8
Cost to Income (%)	45.8	49.7
ROE (%)	18.5	14.15

Valuation & price assessment

Q.1 Stock return of Indian Bank over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 24.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	24.7%	42.3%	41.8%	38.5%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	9.43	7.45	10.61
Price to Book	1.51	1.25	1.12
Price to Sales	1.63	1.26	1.15
EV to EBITDA	5.99	3.62	5.06

Q.3 Valuation ratios of Indian Bank vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 1.51 is higher than its historical median of 1.25, indicating that the stock is trading above its historical average valuation.

Check more companies

1. SBI

2. Bank Of Baroda

3. Union Bank Of India

4. PNB

5. Canara Bank

6. Indian Bank

Check trending companies

1. Authum Investment & Infrastructure Ltd.

2. Cera Sanitaryware Ltd.

3. Swiggy Ltd.

4. Nippon Life India Asset Management Ltd.

5. Wipro Ltd.

Check Before You Invest : Indian Bank

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

About MoneyWorks4Me

Our Vision

What Makes MoneyWorks4Me Different

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

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.