BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Indian Bank reported healthy profitability metrics despite elevated slippages and up-fronting of family pension related provisions (~Rs 4.6 billion) during the quarter, benefitting from lower provisions and tax write-backs.
Slippages at 3.6% were elevated led by one large corporate slippage (Future group) and elevated micro, small and medium enterprise slippages.
Consequently, higher interest reversals resulted in weaker net interest margin, but credit costs were better than expected as the bank provided adequately (~90%) against Future retail exposure in Q3 FY22 itself.
Indian Bank's restructured book stands at ~4.7% of loans, with ~8% of opening retirement savings account having slipped to non-performing asset, including Future group exposure.
This is despite only 50-60% of restructured book coming out of moratorium.
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