Buy Indian Bank Ltd for the Target Rs. 100 by Motilal Oswal Financial Services Ltd
Loan growth better than estimate, CD ratio inches up
Indian Bank released its 3QFY26 business update. Following are the key takeaways:
* Total Business of the bank grew to INR14.3t. Total business of the bank grew by 13.4% YoY/2.3% QoQ.
* Gross advances grew by 14.5% YoY/ 3.3% QoQ to INR6.4t (marginally better than our estimate of 14.2% YoY/ 2.3% QoQ for Net Advances), driven by continuous traction in RAM segment which grew by 17% YoY/ 4.3% QoQ to INR3.92t.
* Deposits grew 12.5% YoY/ 1.7% QoQ to INR7.9t (inline to our estimate), led by robust growth in CA deposits at 19.4% YoY and steady growth in SA deposits at 7.7% QoQ.
* Overall loan growth stood better than our estimate, while deposits growth stood largely inline. As a result, calculated CD ratio (on gross advances) increased to 81% vs 79.8% in 2QFY26.
For More Research Reports : Click Here
For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412
