Indian Bank- A Multibagger that Grew 2-Folds in 11 Months

Shares of Indian Bank saw a rise of more than 5 per cent in today’s trading session.

Indian Bank has revised the Marginal Cost of Funds Based Lending Rate (MCLR) with effect from January 7, 2017.

Overnight MCLR has been revised to 8.40 per cent. The MCLR for a one month period has been fixed at 8.45 per cent, while an MCLR of 8.50 per cent has been fixed for a three month period, 8.55 per cent for a six month period, 8.60 per cent for a one year period, 8.75 per cent for a three year period, and 8.90 per cent for a five year period.

The MCLR rate cut started by SBI has led to several banks cutting their MCLR rates.

The impact on the banking profitability will only be clear in the coming quarters due to such aggressive rate cut as it is widely expected that the net interest margins of these banks will be negatively impacted.

Indian Bank- A Brief

Indian Bank is an Indian state-owned financial services company established in the year 1907 (before Independence). It is headquartered in Chennai, India. The Bank employs 20,661 people in 2594 branches and is one of the top performing public sector banks in India. It has overseas branches in Colombo and Jaffna in Sri Lanka, and in Singapore, and 223 correspondent banks in 71 countries. Since the year 1969, the Government of India has owned the bank.

Indian Bank is observed as one of the Multibagger Stocks by the Research Team of Dynamic Levels for the current months. Multibagger Stocks come with very strong fundamentals and are expected to give very good returns in the near future. They can be very profitable for your portfolio.

Rises and Returns

Since the Union Budget of February 2016, the PSU Bank has given a return of 198.12 per cent.

If we take a look at the Indian Bank share price on 29^th February 2016 (the Union Budget day), we can see that the share price closed at Rs 75.21 per share on NSE. Therefore, at the CMP of Rs 238.80, one can notice that there has been a growth of about 2.5 times within 11 months.

Today’s Stock Commentary

At 12.05 PM Indian Bank share price was seen trading at Rs 238.80, up by 4.94 per cent or 11.25 points. A total of 6,68,739 shares of the company have been traded on NSE against the 20 days average daily trading volume of 4,13,156.Get the historical share price performance of Indian Bank at Indian Bank share price history.