The bank’s strong FY25 performance, marked by a 35% increase in net profit and a significant improvement in key profitability ratios, has sparked optimism for its continued growth.
Indian Bank shares are set for a breakout, with SEBI-registered analyst Rajiv Gupta projecting a target price of ₹586 for the stock, following a strong performance in FY25.
Indian Bank stock was up 2.4% at ₹571.30 at the time of writing on Monday.
The bank reported a 35% year-on-year increase in net profit, reaching ₹10,918 crore, while operating profit rose 13% to ₹18,998 crore.
Indian bank’s net interest income (NII) grew by 8% to ₹25,176 crore, supported by a net interest margin (NIM) of 3.51% in its domestic operations.
Gupta highlighted significant improvements in key profitability ratios, with return on assets (RoA) increasing by 25 basis points to 1.32%, and return on equity (RoE) rising by 152 basis points to 20.76%.
Operational efficiency improved, with the cost-to-income ratio reducing by 115 basis points to 44.77%.
Gupta also pointed out that asset quality had strengthened, with the slippage ratio declining to 1.11%, down 38 basis points, and credit costs falling to 0.66%, a decrease of 11 basis points.
Gupta's outlook remains bullish on Indian Bank, anticipating continued growth driven by strong financial fundamentals and improved operational metrics.
On Stocktwits, Sentiment was ‘neutral’ amid ‘normal’ message volume.
Shares of Indian Bank have risen 10.4% so far this year.
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