Shares of Indian Bank spurted over 3 percent in the morning trade on July 28, a day after the public sector lender reported a 40.8 percent rise in net profit at Rs 1,708.8 crore for the April-June quarter of FY24.
The Chennai-based bank’s asset quality improved, as gross non-performing assets (GNPA) declined to 5.47 percent from 8.13 percent during the quarter, while net non-performing assets (NNPA) fell to 0.70 percent from 2.21 percent.
Net interest income (NII) jumped 26 percent to Rs 5,703 crore from Rs 4,534 crore in the year-ago period. Current account savings account (CASA) deposits increased 5 percent year on year to Rs 2,50,242 crore.
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Total income in the first quarter of the current fiscal rose to Rs 14,759 crore from Rs 11,758 crore, Indian Bank said in a regulatory filing.
The lender's interest income also increased to Rs 13,049 crore from Rs 10,153 crore in the same quarter of the previous year.
“Indian Bank reported a healthy performance with in line earnings, supported by margin expansion and healthy loan growth, particularly in the Retail, Agri, and Corporate segments. The bank expects the growth trend to remain healthy going ahead,” domestic brokerage firm Motilal OSwal said in a note.
Asset quality improved with reduction in slippages and healthy recovery/upgrades. Deposit growth was modest and CASA witnessed a moderation, it said.
“We increase our earnings estimate for FY24/25 by 9 percent/6 percent and estimate FY25 RoA/RoE at 1.1 percent/17.4 percent and reiterate our BUY rating with a revised target price of Rs 380,” it added.
At 10.15 am, shares of Indian Bank were trading 3.52 percent up at Rs 339.90 on the BSE.
Indian Bank has gained 14 percent this year, so far, while the 1-year return stands at 90 percent.
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