Indian Bank Q3 Results Review - Strong Quarter, Earnings To Gradually Improve: Anand Rathi

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Anand Rathi Report.Indian Bank's Q3 FY23 slippages were Rs 13.1 billion (1.2% of loans) lower than in the previous quarter and better than we expected. Asset quality improved in all segments. With the bulk of the accounts stressed by Covid-19- related restrictions already delinquent/restructured in the last few quarters, we expect slippages to moderate from now. The gross non-performing asset ratio fell 77 bps QoQ to 6.5% due to strong recoveries and higher write-offs. Indian Bank’s overall collection efficiency was stable in Q3 FY23 at ~95%.The gross loan book was Rs 4.5 trillion (up ~12.8% YoY) driven by secular growth across segments. With a cleaner balance sheet, adequate capital and a strong deposit base, we expect a pick-up in credit growth from now; accordingly, we model low-teen growth for FY24 and FY25.With a pick-up in business growth and a moderating slippage run-rate, credit costs are expected to be soft. Higher business growth combined with benign credit costs would lead to strong profitability in the medium term. We estimate a 0.9% return on asset through FY24/25..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Indian Bank Q3 Results Review - Strong Quarter, Earnings To Gradually Improve: Anand Rathi

The gross non-performing asset ratio fell 77 bps QoQ to 6.5% due to strong recoveries and higher write-offs.

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