Shares of the Indian Bank climbed nearly 8 percent on Monday, November 7 after the public sector bank posted a 13 percent rise in net profit during the second quarter of the financial year 2022-23 (Q2FY23) to ₹1,225 crore.
During Monday’s trade, the stock opened at a price of Rs. 255.19 against the previous close of Rs. 249.70 and rallied further to record a new 52-week-high of Rs. 269.15 per share. At 12:35 p.m., it was trading at Rs. 261.75, up by 4.83 percent on the NSE.
The stock has shown a positive growth of almost 30 percent in the past one month. In the last six months, it has returned over 73 percent to its shareholders. Furthermore, the shares of the bank have grown over 83 percent this year-to-date.
On Thursday, Indian Bank reported 13 percent rise in net profit at ₹1,225 crore for the September quarter of 2022-23 as provisions for bad loans fell. The bank had posted a net profit of ₹1,089 crore for the year-ago period, PTI reported.
Total income in the quarter increased to ₹12,538 crore from ₹11,440.42 crore in the same period a year ago. Net interest income during the quarter was higher 15 percent at ₹4,684 crore. Fee income grew 18 percent to ₹723 crore, the official report stated.
The bank’s gross non-performing assets (NPAs) during the quarter decreased by 226 bps year-on-year to 7.30 percent from 9.56 percent, while its net NPAs reduced by 176 bps to 1.50 percent from 3.26 percent in September 2021.
Among other important ratios, the cost of income ratio increased from 45.85 to 44.27 percent, and the yield on advances grew from 6.98 percent to 7.48 percent. However, the cost of deposits was relatively high at 4.02% compared to 3.86%, and the cost of funds was higher at 4.05% compared to 3.89%.
Earlier, on Tuesday, November 1, the public-sector bank had announced the hike of the marginal cost of funds-based lending rate (MCLR) by 15-35 basis points across tenors.
Indian Bank, established in 1907, is a banking and finance company with a market capitalization of ₹31,098.67 crore. The company's segments include treasury, corporate / wholesale banking, retail banking, and other banking business. These include providing loans and transaction services to corporate and institutional clients and further include non-treasury operations of foreign offices.
According to a Mintgenie poll, an average of 10 analysts have a ‘STRONG BUY’ call on the stock.
