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Indian Bank Stock Analysis

Mid Cap
Evaluated by 6145 users | BSE: 532814 | NSE: INDIANB |
Bank - Public
Indian Bank was established 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 countryIt has entered into a strategic tie-up with HDFC Standard Life...

Analysis of Financial Track Record

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 performed well in majority of the past ten years indicating its past ten year financial track record is very good
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Net Interest Income (Rs. Cr.)4,0434,4214,5304,3624,4644,4495,1486,2647,0157,604
Y-o-Y Gr. Rt.33-9.4%2.5%-3.7%2.3%-0.3%15.7%21.7%12%8.4%
Total Income10,55113,47515,18716,62717,22618,03318,26219,53221,07424,727
Y-o-Y Gr. Rt.-27.7%12.7%9.5%3.6%4.7%1.3%7%7.9%17.3%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
39.6840.1636.625.0221.8415.6430.2527.297.9114.15
Y-o-Y Gr. Rt.-1.2%-8.9%-31.6%-12.7%-28.4%93.4%-9.8%-71%78.9%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
188.28217.47245.69251.44265.54285.42306.76335.09410.49373.97
Y-o-Y Gr. Rt.-15.5%13%2.3%5.6%7.5%7.5%9.2%22.5%-8.9%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1 : Not Good
Net Profit/Total Funds (%)1.551.331.040.660.530.360.670.540.120.26
To view Net NPA to Net Advances (%) Colour Rating Guide click here
Net NPA to Net Advances (%): Colour Rating Guide
  • < 0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1: Not Good
Net NPA to Net Advances (%)0.531.332.262.262.54.24.393.813.753.13
To view Capital Adequacy Ratio Colour Rating Guide click here
Capital Adequacy Ratio: Colour Rating Guide
  • > 12% : Very Good
  • 9%-12% : Somewhat Good
  • <9%: Not Good
Capital Adequacy Ratio - - - - - - - - - 0%
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Indian Bank should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Interest Income7.3%11.2%13.9%8.4%
Total Income9.9%7.5%10.6%17.3%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
-10.8%-8.3%-22.4%78.9%
Book Value per Share
7.9%7.1%6.8%-8.9%
Share Price -11.1% -11.7% -44.2% -44.6%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Interest Earned / Total Income88.7490.7591.5191.7192.0390.0887.8387.6391.0286.55
Margins
To view Margins Colour Rating Guide click here
Margins: Colour Rating Guide
  • >2.75 : Very Good
  • 1.75-2.75 : Somewhat Good
  • <1.75 : Not Good
NIM (%)3.413.222.882.432.412.292.52.62.632.59
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15% : Very Good
  • 12%-15% : Somewhat Good
  • <12% : Not Good
Return on Equity (%)23.2320.0315.8910.428.295.49.948.191.793.57
Liquidity Ratio
To view Liquidity Ratio Colour Rating Guide click here
Liquidity Ratio: Colour Rating Guide
  • >35 : Very Good
  • 25-35 : Somewhat Good
  • <25 : Not Good
CASA (%) 30.9430.5727.627.1528.7831.2837.0936.9634.7134.65
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 88.06%
Institutions 4.77%
Non-Institutions 7.16%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Indian Bank and arrived at the following conclusion:

Past 10 year's financial track record indicates that Indian Bank is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Indian Bank's performance infers:

Indian Bank earnings have declined by -8.3%, whereas share price has depreciated -11.7% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Indian Bank share prices over the last 10 years. Here is what we found out:

Indian Bank share price has depreciated -13.3% annually over the past ten years.

Indian Bank was established 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

Indian Bank was established 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 8th February 2001 to this effect.

Indian Bank has two subsidiaries Indbank Merchant Banking Services Ltd, IndBank Housing Ltd.

It is having overseas branches in Singapore , Colombo including a Foreign Currency Banking Unit at Colombo and Jaffna

Business

Personal Banking Under this it 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 It offers banking products and services to NRI clients such as saving accounts, remittance facilities, forex advisory services, home loans, etc.

Indian Bank provides cash management services (CMS), eletronic funds transfer schemes. It also provides seven-day banking at few of its branches.

Milestones and  Awards

Indian Bank received the Skoch Challenger Award for its financial inclusion initiatives in Pondicherry and Dharavi.

The bank bagged first prize for excellent performance under SHG-Bank Linkage Programme conducted by NABARD.

Three branches of Indian Bank located in Tamil Nadu were awarded best performing commercial bank.

2010
Indian Bank launches ASBA Phase II, Sets up Loan Syndication Desks  
2011
Indian Bank launches ''e-Treasury''  
Indian Bank wins - ''Best Risk Master Award''  
Indian Bank launches 24 hours e- Banking Lounge at Alwarpet, Debit Cards for Senior Citizens and Inter-bank Mobile Payment Services  
2012
Award for bravery by Indian Bank  
Launching of Online Fees Payment Facility for the students of Institute of Distance Education and Other Departments of University of Madras  
2013
National Excellence Award in Micro Enterprises lending by Ministry of MSME, GOI  
2014
Indian Bank receives Best Bank Award for extending Credit to SHGs , from the Government of Tamil Nadu  

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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