Earnings Outlook
Indian Bk's Jul-Sept PAT seen up 25% on steady loan growth
This story was originally published at 19:47 IST on 21 October 2024
Register to read our real-time news.Informist, Monday, Oct. 21, 2024
By Pratiksha
NEW DELHI – Indian Bank's net profit for Jul-Sept is seen rising 25.0% on year to INR 24.85 billion, helped by steady loan growth, according to the average of estimates from five brokerage firms. The Chennai-based bank, which will release its Jul-Sept financial results on Oct. 28, posted a net profit of INR 24.03 billion for Apr-Jun.
The estimates for net profit of the bank in Jul-Sept range from INR 23.66 billion to INR 25.44 billion. Indian Bank's gross advances were up 12% on year at INR 5.51 trillion as of Sept. 30, according to provisional data released by the bank on Oct. 7. "Sequential loan growth will be in the 3.0% ballpark due to idiosyncratic growth trajectory," YES Securities (India) Ltd. said in a pre-earnings report.
The state-owned bank's net interest income is seen rising 9.2% on year to INR 62.68 billion in the quarter ended September, according to an average of estimates from the five brokerages. "NII growth will broadly be in-line with the average loan growth as the rise in the yield on advances to be in tandem with rise in cost of deposits. Consequently, NIM (net interest margin) will be stable sequentially," YES Securities said.
Dolat Capital Market Private Ltd. also expects the bank's net interest margin to remain stable sequentially at 3.5%, owing to marginal cost of funds-based lending rates' re-pricing benefits. The bank's net interest margin was 3.44% in the June quarter.
The bank's slippages are expected to be lower on a sequential basis due to seasonality, while provisions may be stable on quarter, according to YES Securities. Provisions for non-performing assets fell 3.6% on year to INR 8.96 billion in Apr-Jun.
On Monday, shares of Indian Bank closed at INR 512.30 on the National Stock Exchange, down 1.2% from the previous close. Following are the Jul-Sept earnings estimates of Indian Bank based on reports compiled by Informist from five brokerage houses:
BROKERAGE | NET INTEREST INCOME (in INR million) | NET PROFIT (in INR million) |
Anand Rathi Share and Stock Brokers Ltd. | 62,782.00 | 24,891.00 |
Dolat Capital Market Pvt Ltd. | 62,305.00 | 23,658.00 |
Emkay Global Financial Services Ltd. | 62,578.00 | 25,025.00 |
Motilal Oswal Financial Services Ltd. | 62,386.00 | 25,441.00 |
YES Securities (India) Ltd. | 63,324.00 | 25,234.00 |
Average | 62,675.00 | 24,849.80 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Manisha Baxla
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