- 05 May 2025
- ICICIdirect Research
INDIAN BANK REPORTED STEADY PERFORMANCE IN Q4FY25
INDIANB - 581 Change: 8.75 (1.53 %)News: Indian Bank reported steady performance in Q4FY25. Advances increased 10.2% YoY (5.2% QoQ), led by the RAM segments—Retail (13.7% YoY), Agri (13.7%), and MSME (11.9%)—while corporate growth remained sluggish at 3.8% YoY. Deposit accretion was modest at 7.1% YoY (5% QoQ), largely supported by term deposits (11.5% YoY), whereas CASA growth stayed muted (0.8% YoY), with the CASA ratio flat at 38.4%. Despite decline in cost of deposit, NIMs came down by 8 bps sequentially to 3.37%, owing to faster repricing on the asset side. Other income grew 27.5% QoQ, supported by higher miscellaneous income. Slippages stayed steady at 1.1% elevated at ₹1,393 crore, though credit cost remained a tad higher at 81 bps (vs. 73 bps in Q4FY24). GNPA/NNPA improved by 17 bps/2 bps QoQ to 3.09%/0.19%, respectively.
View: Other income and lower provision aided earnings while business growth and margins remain modest. Guidance of 10-12% growth and anticipated pressure on margins limiting RoA is seen to keep valuation in a broad range in near term with gradual uptick expected over medium term.
Impact: Neutral