News: Indian Bank reported strong growth at 41% YoY growth in earnings, led by 26% YoY growth in NII and treasury gains along with moderation in credit cost. NII growth came on the back of 13% increase in advances and 51 bps improvement in NIM at 3.61%. Sequential margins remain broadly steady driven by higher uptick in yields and increase in CD ratio to 77.1%. Asset quality improved further with GNPA declining by 48 bps at 5.47%.
Views: Moderation in slippages coupled with healthy PCR at 87.8% is expected to keep credit cost lower. Anticipated healthy growth and steady margins to drive improvement in RoA ahead.
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