• Indian Bank reported a net income of 22.5 billion rupees in 4Q, an increase of 55% y/y, meeting the estimated 22.31 billion rupees.
• The bank’s operating profit stood at 43 billion rupees, a growth of 7% y/y, slightly above the expected 42.58 billion rupees.
• Gross non-performing assets have improved, decreasing from 4.47% to 3.95% q/q, which is even lower than the estimated 4.07%.
• Provisions made by the bank were 8.99 billion rupees, significantly lower than the predicted 13.43 billion rupees.
• Interest income was reported as 146.2 billion rupees, up by 19% y/y, although slightly below the estimated 149.86 billion rupees.
• Interest expense increased by 28% y/y to reach 86.1 billion rupees, which was lower than the expected 90.5 billion rupees.
• Other income rose by 14% y/y to stand at 22.6 billion rupees.
• A dividend per share of 12 rupees was announced.
• The bank’s performance was reflected in stock ratings with 7 buys, 3 holds, and 0 sells.
A look at Indian Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Indian Bank, a full-service bank owned by the Government of India, appears to have a promising long-term outlook based on the Smartkarma Smart Scores. With strong scores in Dividend, Growth, Resilience, and Momentum, the bank seems well-positioned to weather various market conditions and continue to grow. The high score in Value also suggests that Indian Bank may be considered undervalued compared to its intrinsic worth, potentially offering investors a good entry point.
The bank’s high scores across multiple factors indicate a robust performance across various key areas, highlighting its stability, growth potential, and ability to generate returns for shareholders. With a focus on dividend payouts and growth opportunities, along with a solid foundation in resilience and momentum, Indian Bank could be an attractive investment option for those looking for a well-rounded banking stock in the Indian market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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