One of the top performing public sector banks in India, Indian Bank share price is trading above 5 per cent at Rs. 261.65. The stock opened at Rs. 248 against its previous closing at Rs. 247.85. Headquartered in Chennai, this Indian state-owned financial services company was established in 1907.
It has registered a growth of 18.5 per cent in net profit at Rs 405.01 crore during this quarter ended September 30, 2016, against Rs 341.92 crore during the same quarter of the last financial year. The total income increased from Rs 4,579.01 crore during the quarter, as compared to Rs 4,551.26 crore during the same quarter of previous fiscal year, noting a marginal increase.
Till 1.40PM, around 10,61,320 shares are trading in the counter with a traded volume of Rs. 2,754.97 lacs, as per NSE. The average daily movement of the stock is 11.51 and the average volume for 20 days is seen at Rs. 765862.
The percentage of gross non-performing assets (NPAs) grew to 7.28 per cent at Rs 9,192.07 crore during the quarter as compared to 4.61 per cent, which is Rs 5,772.77 crore during the same quarter of last year.
The net NPA rose to Rs 5,656.96 crore (7.28per cent) against Rs 3,187.53 crore (2.60per cent ) posted during the same quarter of previous fiscal year. During the quarter, the Bank has assigned Rs 23.77 crore of non-performing financial assets to asset Reconstruction Company for a consideration of Rs 17.05 crore. Furthermore, The Board has deferred the proposal to raise funds.
It is to be noted that during August 2, 2016 the Board has given the approval to the Bank to raise Basel III compliant AT 1 and Tier 2 Bonds up to Rs 1000 crore in one or more tranches in the current or subsequent years based on the requirement.
Few days back Prime Minister Narendra Modi announced the decommissioning of Rs 500 and Rs 1,000 notes as a legal tender. From then, crowds have been lining up outside banks and ATMs in order to deposit, exchange and withdraw cash. The center has fixed December 30 as the deadline to deposit or exchange all the old notes which has had people scurrying to exchange the now-worthless tender with acceptable bank notes. Indian Bank has announced the cut in deposit rates on its website. The deposit rates for nearly all the maturities have been slashed in the range of 10 basis points to 100 basis points.
Overall, PSU Banks are doing well especially Indian Bank. If this PSU Bank rallies in the same manner then one can expect a target of all time high of Rs. 316.25.
Indian bank share price touched its lifetime low value at Rs. 59.95 on 28th August ’13. It is a multibagger stock for this quarter as identified by Dynamic Levels, as it has traded in very high volumes and has a great potential to grow in the long run.
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