Indian Bank reported amazing results in the last quarter of FY24, with its net profit rising by 31.6% year-on-year (YoY) to ₹2,956 crore compared to ₹2,247 crore in Q4 FY23. This strong bottom-line growth was driven by steady improvements in core operations, a disciplined cost structure, and enhanced asset quality.
The bank’s Net Interest Income (NII) rose 6.2% YoY to ₹6,389.3 crore, indicating a resilient lending performance despite a challenging macroeconomic environment. Operational efficiency remains a highlight, with the Operating Profit Margin (OPM) at a robust 67.2% and Net Profit Margin (NPM) for the year at 18.2%.
One of the most noteworthy improvements came on the asset quality front. Indian Bank’s Gross Non-Performing Assets (GNPA) ratio declined to 3.09% from 3.26% in the previous quarter, while Net NPA improved to just 0.19%, down from 0.21% QoQ—among the best in the PSU banking space.
Despite a relatively low Return on Capital Employed (ROCE) of 6.38%, Indian Bank boasts a healthy Return on Equity (ROE) of 17.1% and a Price-to-Earnings (P/E) ratio of just 6.68, making it an attractively valued pick in the public sector banking universe. With a book value of ₹531, the stock currently trades at a Price-to-Book ratio of 1.05, compared to the industry average of 0.85.
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The stock is priced at ₹558, comfortably above its 52-week low of ₹474, but still trading at a discount to its 52-week high of ₹633. With a dividend yield of 2.15% and a consistent promoter holding of 73.84%, Indian Bank remains a stable long-term candidate for value investors.
From a long-term perspective, the bank has delivered a 3-year compounded profit growth of 40% and a stock price CAGR of 55%, reflecting consistent operational gains and re-rating potential. Analyst sentiment is highly bullish, with 90% of analysts recommending a ‘Buy’ on the stock.
Disclaimer
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Aditya Gaur is the founder of FinanceXaditya and a seasoned stock market investor with over 7 years of experience. Known for building India’s first public dividend growth portfolio showcase, he shares time-tested strategies and real insights that help everyday investors create wealth. With 50,000+ followers across social media, Aditya has become a trusted voice in personal finance and long-term investing.
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