Indian Bank (INDIANB)
Mid CapFinancial Services stocks · Mid cap · NSE
Indian Bank is a public sector bank offering a wide range of financial services. The bank focuses on retail, agriculture, and MSME (RAM) segments, alongside corporate banking, and is expanding its digital footprint and financial inclusion initiatives across India.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Good · 65/100Rev +11% YoY · PAT +47% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹18,095 Cr | +11.1% | +3.5% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹3,357 Cr | +47.4% | +5.8% |
| PAT margin | 18.6% | +457 bps | +40 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Indian Bank reported strong Q1FY27 results with Net Profit up 10% YoY to ₹3273 Cr, driven by 17% YoY growth in Net Interest Income and Operating Profit. Advances grew 13.89% YoY, while asset quality improved significantly with GNPA at 1.86% (down 115 bps YoY) and NNPA at 0.15%.
The bank delivered robust Q1FY27 performance, marked by healthy business growth, improved profitability, and continued asset quality enhancement. The strong RAM segment growth and digital expansion are positive, aligning with management's optimistic FY27 guidance for key metrics.
Domestic Advances by Sector
Latest issuer-disclosed distribution across 4 reported categories.
RAM Segment Growth
RAM advances grew 14.80% YoY to ₹4.17 lakh Cr, with its share in domestic advances increasing to 66.00%.
Retail Loan Momentum
Retail advances grew 18.74% YoY, driven by Jewel Loan Non Priority (up 77.23% YoY) and Auto Loan (up 32.58% YoY).
Digital Business Expansion
Digital Business grew ~1.2x YoY in amount, with Digital MSME Loans showing ~1.8x YoY growth.
Infrastructure Sector Deployment
Advances to the Infrastructure sector grew 34.02% YoY, reaching ₹76057 Cr, indicating strong credit deployment.
Branch Network Expansion
Opened 2 Senior Konnect Branches in Q1FY27, contributing to 367 such branches since amalgamation.
Business Correspondent Network
Increased Business Correspondents to 17314, expanding pan-India touch points to 28,994.
Digital Platform Enhancements
Launched new digital initiatives like IND Cash Optima, IndEngage Hub (CRM), IndSMA₹T Biz, and Virtual Banking Experience (VBX).
Employee Induction
Inducted 2075 new employees (632 POs, 261 Specialized officers, 1182 Customer Service Associates) in Q1FY27.
Digital Adoption
Significant YoY growth in digital transactions and digital business, indicating increasing customer adoption and operational efficiency.
Asset Quality Improvement
Consistent reduction in GNPA and NNPA percentages, reflecting improved asset health and recovery efforts.
Strong RAM Segment Performance
Robust growth in the high-yielding Retail, Agriculture, and MSME (RAM) segments, driving overall advances growth.
Decline in Personal Loans
Personal Loan portfolio declined by 12.87% YoY, indicating a contraction in this specific retail segment.
Volatility in Non-Interest Income
Profit/Loss on Sale of Investments declined 64.59% YoY, and PSLC Commission income decreased 21.19% QoQ.
Regional Rural Bank Performance
Operating Profit and Net Profit of total RRBs declined by 49% YoY, impacting overall group performance.
Rising Standard Asset Provisions
Provisions for Standard advances increased 139.01% YoY and 48.89% QoQ, which could signal a more cautious outlook on asset quality.
MSME Credit RWA Density
MSME Credit RWA density remains high at 69.28%, indicating higher capital allocation for this segment.
Exposure to Lower-Rated Advances
7% of total rated exposure is in BB and below categories, posing potential credit risk.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both YoY and QoQ comparisons are essential for financial services. YoY provides insight into underlying business trends and seasonal impacts, while QoQ tracks sequential momentum in credit growth, asset quality, and operational efficiency.
AUM Growth
Business (Deposits + Advances) grew 13.66% YoY to ₹15.29 lakh Cr; Advances grew 13.89% YoY to ₹6.85 lakh Cr; Deposits grew 13.47% YoY to ₹8.44 lakh Cr.
NIM
Net Interest Margin (NIM) Domestic improved to 3.41% (up 6 bps YoY, 6 bps QoQ); Overall NIM at 3.29% (up 34 bps YoY, 3 bps QoQ).
Borrowing Cost
Cost of Deposits decreased to 4.80% (down 34 bps YoY, 3 bps QoQ); Cost of Funds decreased to 4.83% (down 40 bps YoY, 5 bps QoQ).
GNPA/NNPA
Gross NPA % improved to 1.86% (down 115 bps YoY, 12 bps QoQ); Net NPA % remained stable at 0.15% (down 3 bps YoY).
FY27 Advances Growth Target
Management guides for 11% - 13% advances growth for FY27, compared to Q1FY27 actual of 13.89%.
FY27 Asset Quality Targets
Targets GNPA % at 1.50% - 1.60% and NNPA % at 0.15% - 0.20% for FY27, indicating continued focus on asset quality improvement.
FY27 Profitability Targets
Aims for NIM of 3.10% - 3.25% and RoA of 1.20% - 1.30% for FY27, suggesting a stable to slightly lower outlook on margins and returns.
FY27 Recovery Target
Projects total recovery of ₹4500 Cr - ₹5500 Cr for FY27, significantly higher than Q1FY27 actual of ₹1885 Cr.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| GNPA % | 1.86% | Sustained reduction towards management's FY27 guidance of 1.50% - 1.60% and any sector-specific slippages. |
| Domestic NIM | 3.41% | Stability or improvement, especially given management's FY27 guidance of 3.10% - 3.25% for overall NIM. |
| RAM Advances Growth | 14.80% YoY | Continued outperformance relative to overall advances growth and contribution to profitability. |
| Provisions for Standard Advances | ₹733 Cr (up 139.01% YoY) | Trend in these provisions as a leading indicator of potential future asset quality stress. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
64BullishSMA20 +5.0% / mo · MACD −
Technical chart
INDIANBdaily · 1Y · AUTO-7.6%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 53. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~4.7% over last month) — short-term momentum positive.
- RSI(14) at 53 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 12% off 52W high · 32% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- 11.3% below the 52-week closing high after prior strength.
- The 30-week proxy has stalled (+0.3% over 20 sessions).
- Price has not yet confirmed a full Stage 4 downtrend.
Valuation & score drivers
U-Score 73 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 73 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 15.5%.
- Fair-value margin of safety is positive at 66.6%.
- Cash flow contributes 9/10 to the score.
Main drags
- Quality is weaker at 8/20; verify the latest quarterly trend.
- Balance sheet is weaker at 9/15; verify the latest quarterly trend.
- Valuation is weaker at 24/30; verify the latest quarterly trend.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 90th percentile of the scored universe and 93rd percentile within Financial Services. Main check: financial discipline is weak at 56/100.
High Trust Lite: Promoter holding is 73.8%. Key concern: ROCE is low at 6.3%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Financial Services: 93rd pctile, median 62 · Mid: 72nd pctile, median 76
97 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 73.8%.
- ▸Promoter pledge is zero.
- ▸FCF yield is 15.5%.
- ▸6 years of positive FCF.
Trust risks
- ▸ROCE is low at 6.3%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 9.27
- P/B
- 1.41
- EV/EBITDA
- —
- Market Cap
- 118492.00Cr
Profitability
- ROE
- 15.40%
- ROCE
- 6.32%
- ROA
- 1.29%
- Dividend Y
- 2.07%
Growth (CAGR)
- Revenue 5Y
- 12.00%
- EPS 5Y
- 30.00%
- Revenue 3Y
- 14.00%
- EPS 3Y
- 28.00%
Balance Sheet
- Debt/Equity
- 0.06
- Interest Coverage
- —
- Altman Z
- 1.91
- Book Value
- 623.00
Cash Flow
- FCF Yield
- 15.52%
- FCF Positive Y
- 6/5
- OCF
- 18815.00 Cr
- EPS TTM
- 94.91
Shareholding
- Promoter Hold
- 73.84%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 64%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.