Indian Bank Stock Analysis

BSE: 532814 | NSE: INDIANB | Bank - Public | Large Cap

BSE Share Price Aug 19, 18:03
177.55 -5.00 (-2.74%)

DeciZen - Make an Informed Decision on Indian Bank

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Indian Bank Price Chart

P/E Ratio (CD) :
5.42
Market Cap :
22,735.5 Cr.
52-wk low :
115.2
52-wk high :
194.8
Bole Toh?

1. Is Indian Bank a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Indian Bank is a below average quality company.

2. Is Indian Bank undervalued or overvalued?

The key valuation ratios of Indian Bank's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Indian Bank a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Indian Bank is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Indian Bank:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Indian Bank has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Net Interest Income (₹ Cr.)4,5304,3624,4644,4495,1486,2647,0157,60415,66916,73217,285
YoY Gr. Rt. %--3.7%2.3%-0.3%15.7%21.7%12%8.4%106.1%6.8%-
Total Income15,18716,62717,22618,03318,26219,53221,07424,72745,21946,26846,613
YoY Gr. Rt. %-9.5%3.6%4.7%1.3%7%7.9%17.3%82.9%2.3%-
Adj EPS (₹ ) 36.62521.815.630.327.37.914.227.933.333.7
YoY Gr. Rt. %--31.6%-12.7%-28.4%93.4%-9.8%-71%78.9%97%19.3%-
BVPS (₹ )245.7251.4265.5285.4306.8335.1410.5374349.4360.9370.7
YoY Gr. Rt. %-2.3%5.6%7.5%7.5%9.2%22.5%-8.9%-6.6%3.3%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)10.70.50.40.70.50.10.30.60.60
To view Net NPA to Net Advances (%) Colour Rating Guide click here
Net NPA to Net Advances (%)2.32.32.54.24.43.83.83.13.42.32.1
To view Capital Adequacy Ratio (%) Colour Rating Guide click here
Capital Adequacy Ratio (%)-----------

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest Income15.6%26.6%33.6%6.8%
Total Income13.2%20.4%30%2.3%
Adj EPS-1.1%1.9%61.4%19.3%
BVPS4.4%3.3%-4.2%3.3%
Share Price 0.4% -10.2% -1% 41.8%

Key Financial Ratios

RATIOS \ YEARSMar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Interest Earned / Total Income91.5191.7192.0390.0887.8387.6391.0286.5586.4983.9984.5
Margins To view Margins Colour Rating Guide click here
NIM (%)2.92.42.42.32.52.62.62.62.62.60
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)15.910.48.35.49.98.21.83.69.79.59.1
Liquidity Ratio To view Liquidity Ratio Colour Rating Guide click here
CASA (%)27.627.228.831.337.13734.734.742.341.8-

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 9.20%

Total Income has increased 29.97 CAGR in last 3 years

Net Profit has increased 61.40 CAGR in last 3 years

Net NPA to Net Advances has declined versus last 3 years average

Total income growth is good in last 4 quarters

No data to display

Latest Financials - Indian Bank

Standalone Consolidated
TTM EPS (₹) 31.9 33.7
TTM Sales (₹ Cr.) 39,386 39,404
BVPS (₹.) 310.8 370.7
Reserves (₹ Cr.) 37,466 44,923
P/BV 0.59 0.49
PE 5.72 5.42
From the Market
52 Week Low / High (₹) 115.15 / 194.80
All Time Low / High (₹) 41.70 / 428.00
Market Cap (₹ Cr.) 22,736
Equity (₹ Cr.) 1,245.4
Face Value (₹) 10
Industry PE 11.5

Management X-Ray of Indian Bank :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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Key Ratios of Indian Bank

Adj EPS (Rs.)
Total Income (Cr.)
ROE (%)
BVPS (Rs.)

News

About Indian Bank

Indian Bank was established as a part of Swadeshi movement on 15 August 1907. It provides a wide spectrum of banking products and services. It is pioneer in introducing Self Help Groups and Financial Inclusion Project in the country

It has entered into a strategic tie-up with HDFC Standard Life Insurance Company Ltd., the first in the private sector to receive the Certificate of Registration for foray into Life Insurance business for distribution of latter’s insurance products. A Memorandum of understanding has been signed by the Bank with the Insurance Company on February 8, 2001 to this effect.

The year 2019-20 was eventful for Indian Bank as the Bank was identified as the Anchor Bank in consolidation of PSBs. The Government on 30 August 2019 announced the Amalgamation of Allahabad Bank- a bank with 155 years legacy into Indian Bank. Customers of both the banks will now have a banking experience that is “Twice as Good'.

Post amalgamation, Indian Bank enjoys the benefits of doubled balance sheet size, optimized capital utilization and wider geographic reach leading to deeper penetration. The Bank has access to larger talent pool, better products and opportunities to cross sell / upsell. It would also leverage upon the increased operational and process efficiencies.

Business area of the bank

The bank provides a wide spectrum of banking products and services. The services offered by the bank includes Personal Banking -Under this the bank offers fixed deposits, saving accounts, recurring accounts, saving accounts for kids and senior citizens, internet banking, ATM facility, debit/credit cards, home loans, personal loans. NRI services- The bank offers banking products and services to NRI clients such as saving accounts, remittance facilities, forex advisory services, home loans, etc. It also provide cash management services (CMS), eletronic funds transfer schemes as well as provides seven-day banking at few of their branches 

Awards & Accolades

FY 17-18

  • Named the Best Brand by ‘the Economic Times Best BFSI Brands 2018’
  • Financial Express/EY Best Bank 2016-17 - Nationalised Banks
  • ASSOCHAM Social Banking Excellence Awards 2017 Winner Best Social Bank category and Runner up Priority sector lending

FY 18-19

  • Best performing PSB under APY 2017-18 - PFRDA
  • Best Performance - Financial Literacy - 2018-19 - NABARD
  • Best Bank in SHG Bank linkage Programme' for 2017-18 from Govt of Tamil Nadu. Bank has bagged this award for consecutive years.
  • National Award for Best Performance in SHG Bank Linkages 2017-18 Public Sector Banks (Small Category) by National Rural Livelihoods Mission, Ministry of Rural Development, Government of India.
  • Best Financial Inclusion Initiatives - Runner up - Indian BanksAssociation (IBA).
  • ASSOCHAM - Social Banking Excellence Award 2018 - Winner in Agricultural Banking, Priority Sector Lending, Technology & Overall Best Social Bank.
  • Best Public Sector Bank Banking Excellence Award 2018 - By State Forum of Banker's Clubs Kerala.

FY 19-20

  • Technology Senate’ award from Indian Express Group for the product ‘VCollect Plus’ for enabling collection through Cash / Cheque at any branch or NEFT / RTGS through any Bank
  • MeitY Award for Digital Payments under Mid-Size Bank category for the highest digital transactions

Milestones

  • 1907: Bank was incorporated on March 5, 1907 with an Authorized Capital of Rs 20 lakhs and commenced its business on August 15, 1907.
  • 1907: In the year 1907, the Indian Bank Ltd. had the tree 'Banyan' as a part of its emblem denoting an all-around progress, growth (far and wide) and an ever increasing prosperity.
  • 1921: Bank's capital was raised to Rs 60 lakhs from Rs 20 lakhs.
  • 1932: Bank celebrated its Silver Jubilee
  • 1932: Bank opened its first overseas operations in Colombo
  • 1941: Singapore branch was opened
  • 1952: Bank's deposits crossed Rs 20 crore at the end of 1952.
  • 1957: Bank celebrated its Golden Jubilee
  • 1967: Bank celebrated its Diamond Jubilee
  • 1970: Bank's Head Office housed in a rental building, moved into the new building.
  • 1978: Indian Bank's logo was approved in July 1978 comprising of three circling arrows arranged around a central point.
  • 1980: Bank's deposit crossed Rs 1000 crore.
  • 1982: Bank celebrated its Platinum Jubilee
  • 1983: Bank crossed its Rs 1000 crore mark in credit.
  • 1985: Global Deposit crossed the Rs 3000 crore mark.
  • 1986: Global credit crossed Rs 2000 crore.
  • 1989: The era of technology initiated with the installation of Mainframe at the Head Office.
  • 1989: Indian Bank was the first Public Sector Bank to install ATM.
  • 1990: Bank of Thanjavur Ltd. (BoT) with 157 branches was amalgamated with the Bank.
  • 1993: The first total branch computerization project was inaugurated.
  • 1999: Bank's domestic deposits crossed the Rs 15000 crore mark during the year.
  • 1999: Government of India infused a sum of Rs 100 crore during March 1999 as additional capital.
  • 2002: Bank turned around by earning a net profit of Rs 33.22 crore during the year after a gap of 6 years.
  • 2002: Bank posted an operating profit of Rs 307.15 crore, with an increase of nearly 399%.
  • 2006: The centenary year celebration of the Bank was inaugurated by His Excellency the President of India Shri.AP JAbdul Kalam on 4 September.
  • 2007: Bank went in for Initial Public Offer in February, 2007.
  • 2008: Bank's business crossed the Rs 1 lakh crore mark in March 2008.
  • 2008: Achieved 100 per cent Core Banking Solutions (CBS) compliant.
  • 2011: Jaffna branch was opened on January 21, 2011.
  • 2012: Inauguration of new Hi-Tech Corporate Office, at Royapettah which is considered a landmark in Chennai.
  • 2012: Bank crossed the Rs 2 lakh crore mark in business.
  • 2013: Bank crossed the 2000 mark in branch network.
  • 2013: First Corporate Office building among PSBs in India to get the ISO 9001:2008 Certification
  • 2015: Bank's business crossed milestone of Rs 3 lakh crore in June 2015.
  • 2018: Bank was the only PSB which had not received capital from Govt of India.
  • 2019: Bank's business crossed Rs 4.5 lakh crore in December 2019.
  • 2019: Government of India announced Amalgamation of Allahabad Bank - a bank with 155 years legacy into Indian Bank.
  • 2020: Indian Bank launches emergency credit facilities for agriculture sector
  • 2021: Indian Bank entered into an Memorandum of Understanding (MOU) with Society for Innovation and Development (SID), an initiative of Indian Institute of Science, for extending exclusive credit facility to Start-ups and MSMEs.
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