Motilal Oswal recommends Indian Bank as buy, sets ₹1,025 target
Business
Motilal Oswal is recommending Indian Bank as a buy, setting a target price of ₹1,025 after the bank's solid Q2 FY27 results.
Profit jumped 15% year over year to ₹34.6 billion, thanks in part to smart use of one-time gains for stronger financial cushions.
Indian Bank NII loans and provisions
Indian Bank boosted its net interest income by 18% and saw loans grow by 17.5%, with its credit-to-deposit ratio now at 81.4%.
The bank also set aside extra funds for potential losses, which helped lower bad loan ratios and cut down on new defaults.
Looking ahead, Motilal Oswal expects Indian Bank to keep up strong returns through FY28, even with a small dip in domestic CASA, making it one to watch for investors.