Indian Bank (INDIANB) AI Stock Analysis

• Market Cap: ₹1.06T
• Dividend Yield: 2.06%
• Average Volume (3M): 54.70K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.32
• Revenue Growth: 9.74%
• EPS Growth: 12.56%
• Country: IN
• Employees: 40,251
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 22.40
• Shares Outstanding: 1,346,964,000
• 10 Day Avg. Volume: 66,177
• 30 Day Avg. Volume: 54,705
• PEG Ratio: 0.24
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.99
• P/FCF Ratio: -2.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹900.00
• Price Target Upside: 14.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ₹997.00 ▲(26.29% Upside)

Indian Bank's stock is supported by strong technical indicators and reasonable valuation, making it attractive for investors. However, potential liquidity issues highlighted in the financial performance could pose risks if not addressed. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for services and effective market penetration, supporting long-term business expansion.

Balance Sheet Health

A moderate debt-to-equity ratio reflects prudent financial management, ensuring stability and flexibility in capital allocation.

Operational Efficiency

High gross profit margins highlight effective cost control and operational efficiency, enhancing profitability and competitive positioning.

Negative Factors

Cash Flow Challenges

Negative cash flow trends can strain liquidity, limiting the bank's ability to invest in growth opportunities and manage financial obligations.

Net Profit Margin Pressure

Decreasing net profit margins suggest rising costs or competitive pressures, which may impact long-term profitability and shareholder returns.

Debt Increase Risk

Rising debt levels can elevate financial risk, potentially affecting credit ratings and increasing interest expenses, impacting future financial health.

Indian Bank Business Overview & Revenue Model

Company Description

Indian Bank (INDIANB) is a prominent public sector bank in India, established in 1907. It offers a wide range of banking and financial services to individual customers, businesses, and government entities. The bank operates across various sectors, including retail banking, corporate banking, treasury operations, and international banking. Its core products and services include savings and current accounts, fixed deposits, loans (personal, home, auto, and business), credit cards, and investment services, along with insurance and wealth management products.

How the Company Makes Money

Indian Bank generates revenue primarily through interest income, which comes from loans and advances provided to customers. The bank charges interest on various loan products, including personal loans, home loans, and business loans, which forms the bulk of its income. Additionally, the bank earns non-interest income through fees and commissions from services like account maintenance, transaction fees, and cross-selling financial products such as insurance and mutual funds. Significant partnerships with financial technology firms and other financial institutions enhance its service offerings and customer base, contributing to revenue growth. Furthermore, the bank's investment in government securities and bonds also provides a steady stream of interest income, supporting its overall earnings.

Indian Bank Financial Statement Overview

Summary

Indian Bank demonstrates strong revenue growth and operational efficiency, with a solid balance sheet characterized by a healthy return on equity and moderate leverage. However, the negative cash flow trends highlight potential liquidity issues that need addressing to ensure long-term financial stability.

Income Statement

Indian Bank has shown consistent revenue growth over the years, with a recent growth rate of 2.45%. The gross profit margin is strong at 48.89%, indicating efficient cost management. However, the net profit margin has decreased from previous years, currently at 15.63%, suggesting some pressure on profitability. The EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The bank maintains a moderate debt-to-equity ratio of 0.58, indicating a balanced approach to leveraging. Return on equity is robust at 15.75%, showcasing effective utilization of equity capital. The equity ratio is stable, reflecting a solid capital structure. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows, indicating potential liquidity challenges. The free cash flow to net income ratio is slightly above 1, suggesting that the bank is generating enough cash to cover its net income, but the negative growth in free cash flow is a risk factor.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	738.37B	720.49B	642.34B	527.89B	462.65B	452.20B
Gross Profit	359.47B	352.23B	318.93B	280.72B	241.36B	217.81B
EBITDA	110.67B	115.38B	86.60B	58.63B	45.95B	36.53B
Net Income	109.67B	112.61B	84.19B	55.72B	41.42B	31.49B
Balance Sheet
Total Assets	8.98T	8.77T	7.96T	7.13T	6.74T	6.28T
Cash, Cash Equivalents and Short-Term Investments	0.00	549.61B	421.77B	502.17B	799.68B	541.00B
Total Debt	530.51B	415.52B	231.43B	220.92B	172.18B	303.75B
Total Liabilities	8.24T	8.05T	7.35T	6.64T	6.29T	5.89T
Stockholders Equity	741.80B	715.13B	602.48B	495.07B	449.52B	394.58B
Cash Flow
Free Cash Flow	0.00	-322.89B	-92.44B	-282.28B	284.27B	165.04B
Operating Cash Flow	0.00	-317.49B	-86.17B	-278.94B	287.50B	170.65B
Investing Cash Flow	0.00	-3.48B	-6.18B	-3.14B	-3.05B	-5.45B
Financing Cash Flow	0.00	448.82B	11.95B	-15.43B	184.30M	18.66B

Indian Bank Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 789.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDIANB, the sentiment is Neutral. The current price of 789.45 is below the 20-day moving average (MA) of 842.08, below the 50-day MA of 828.27, and above the 200-day MA of 659.98, indicating a neutral trend. The MACD of -15.09 indicates Positive momentum. The RSI at 39.06 is Neutral, neither overbought nor oversold. The STOCH value of 14.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:INDIANB.

Indian Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNIONBANK	81 Outperform	₹1.17T	6.31	―	3.11%	3.86%	19.14%
BANKBARODA	81 Outperform	₹1.47T	7.65	―	2.93%	4.40%	-3.84%
CANBK	75 Outperform	₹1.33T	6.94	―	2.70%	8.89%	19.79%
PNB	75 Outperform	₹1.35T	7.95	―	2.44%	12.10%	12.93%
INDIANB	74 Outperform	₹1.06T	9.43	―	2.06%	9.74%	12.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Indian Bank Corporate Events

Indian Bank Revises Benchmark Lending Rates

Indian Bank has announced a revision in its Marginal Cost of Funds based Lending Rate (MCLR) and Treasury Bills Linked Lending Rates (TBLR) across various tenors, effective from December 3, 2025. The adjustments reflect a slight decrease in the one-year MCLR and a minor reduction in the TBLR for terms up to three months, potentially impacting loan pricing and borrowing costs for customers.

Indian Bank Appoints Ms. Mini T M as Executive Director

Indian Bank has announced the appointment of Ms. Mini T M as the new Executive Director, effective November 24, 2025. Ms. Mini brings over three decades of extensive experience from her previous roles at Federal Bank, e-Vijaya Bank, and Bank of Baroda, where she managed large business portfolios and drove strategic growth. Her leadership is expected to enhance Indian Bank’s operations, focusing on digital enhancements, governance, and sustainable growth, thereby strengthening its position in the banking industry.