Street View: Indian Bank's profit set to grow on falling credit costs

Indian Bank

28/07/2023 10:18

** Shares of Indian Bank Ltd  INBA.NS  rise as much as 4% to
341.95 rupees, highest since Aug. 23, 2018
    ** Lender reported ~41% jump in June-qtr profit  
    
    
    BANK WELL CAPITALIZED, CREDIT COSTS TO SOFTEN

    ** Emkay Research ('buy,' PT: 425 rupees) raises INBA's
FY24-25 earnings estimates by 5-9%, says preferred pick in the
PSU bank space; says bank remains well capitalized
    ** Anand Rathi Research ('buy,' PT: 386 rupees) sees strong
profitability in medium term on softer credit costs, pick up in 
business growth, moderating slippage run-rate; still, flags risk
of lumpy slippage from corporate books  
    ** Phillip Capital ('neutral,' PT: 330 rupees) expects PAT
growth of 19% and 6% in FY24 and FY25; says asset quality
improving on high coverage ratio and declining credit cost 
    ** Motilal Oswal ('buy,' PT:  380 rupees) raises earnings
estimate to 9% and 6% for FY24 and FY25 on declining slippages, 
lower credit costs




($1 = 82.2476 Indian rupees)

 (Reporting by Biplob Kumar Das in Bengaluru)
 ((Biplobkumar.das@thomsonreuters.com))