Indian Bank — Financial Report

Company Overview Indian Bank, established in 1907 and nationalized in 1969, is a leading public sector bank headquartered in Chennai. The Government of India owns approximately 73.84%. As of mid-2025, it operates around 5,909 branches and 5,466 ATMs/BNAs, with an international presence in Colombo and Singapore. The Capital to Risk Weighted Assets Ratio (CRAR) is 17.80%, indicating strong capitalization. Market Snapshot & Valuation • Market Capitalisation: ₹84,900–₹85,000 Cr • EPS (TTM): ₹85.21 • P/E (TTM): ~7.4–7.5, well below private sector peers • Book Value per Share: ~₹477 • P/B Ratio: ~1.3, below peer median • Dividend Yield: ~2.6% with a latest dividend of ₹16.25 per share (162% payout) Recent Financials & Profitability • FY24 total income: ₹64,232 Cr (up from ₹46,268 Cr in FY22) • Net profit: ₹8,423 Cr (up from ₹4,144 Cr in FY22) • EPS grew from ₹33.99 in FY22 to ₹66.03 in FY24 • PPOP margin eased from 29.07% (FY23) to 26.37% (FY24) • Return on Net Worth improved to ~15.4% in FY24 Capital & Liquidity • Cash and equivalents: ₹53,544 Cr • Total debt: ₹53,051 Cr → net cash position • Equity: ₹74,213 Cr; Book Value per share: ₹550.7 Shareholding Pattern • Promoter (Government of India): ~73.84% • Institutions (FIIs + DIIs): ~22.6% • Non-institutions/retail investors: ~3.6% Strengths • Strong capital base and CRAR at 17.8% • Consistent profit growth and healthy balance sheet • Low valuation relative to peers • Stable dividend payout record Risks • Declining PPOP margin reflects operational pressure • Vulnerable to asset quality challenges and economic cycles • Low retail ownership limits market liquidity Conclusion Indian Bank is a robust PSU bank with strong capitalization, steady profit growth, and a solid balance sheet. Attractive valuations and a healthy dividend yield make it suitable for value and income-focused investors. Future performance will hinge on sustaining margins and maintaining asset quality.