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: 8.95, Historic Median: 7.63. Price to Book, Current: 1.49, Historic Median: 1.30. Price to Sales, Current: 1.65, Historic Median: 1.30. EV to EBITDA, Current: 6.11, Historic Median: 3.71

Q: 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

Q: Total Income growth of Indian Bank?

Indian Bank Total Income growth is 8.72% for FY-2026, which is below its 5-year CAGR of 11.62%, 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 1.1%, indicating improved earnings on assets. Efficiency & Key Metrics. NIM (%), Current: 2.78, Historic Median: 2.95. PPOP (%), Current: 4.35, Historic Median: 13.88. RoA (%), Current: 1.3, Historic Median: 1.1

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

Indian Bank Return on Equity is 17.8% for FY-2026, which is above its 5-year historical median of 16.7%, 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 4.35% for FY-2026, which is below its 5-year median(13.88%), 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 2.78% for FY-2026, which is below its 5-year median( 2.95%), indicating decreasing margins.

Q: Does its ROIC exceed its WACC?

Indian Bank return on invested capital (ROIC) is 33.84% for FY-2026, 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	8.95	7.63
Price to Book	1.49	1.30
Price to Sales	1.65	1.30
EV to EBITDA	6.11	3.71

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

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 8.72% for FY-2026, which is below its 5-year CAGR of 11.62%, 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 1.1%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NIM (%)	2.78	2.95
PPOP (%)	4.35	13.88
RoA (%)	1.3	1.1

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

Indian Bank Return on Equity is 17.8% for FY-2026, which is above its 5-year historical median of 16.7%, 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 4.35% for FY-2026, which is below its 5-year median(13.88%), 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 2.78% for FY-2026, which is below its 5-year median( 2.95%), indicating decreasing margins.

Q.6 Does its ROIC exceed its WACC?

Indian Bank return on invested capital (ROIC) is 33.84% for FY-2026, 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 13.06% for FY-2026, which is above its 5-year CAGR of 9.65%, indicating faster 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 47% for FY-2026, 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 17.93% for FY-2026, 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 1.98% for FY-2026, which is below its 5-year median 3.95%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 0.15% which is below its 5-year median( 0.43%), 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 9.65%, compared to the 5-year industry median CAGR of 9.78%, indicating stable growth and maintaining 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 4.86%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NIM (%)	2.78	2.64
PPOP (%)	4.35	10.93
RoA (%)	1.3	1

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

Indian Bank Cost to Income (45.7) is below the industry median of (49.85); while the current ROE (16.7) are in line with than the 5-year average Industry ROE (16.65). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NIM (%)	2.78	2.64
PPOP (%)	4.35	10.93
RoA (%)	1.3	1
Cost to Income (%)	47	49.85
ROE (%)	17.8	16.65

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 15.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	15.7%	44.8%	35.8%	35.1%

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	8.95	7.63	10.61
Price to Book	1.49	1.30	1.12
Price to Sales	1.65	1.30	1.15
EV to EBITDA	6.11	3.71	5.06

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

The current Price-to-Book (P/B) ratio of 1.49 is higher than its historical median of 1.30, indicating that the stock is trading above its historical average valuation.

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Check Before You Invest : Indian Bank

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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