Indian Bank (INBK IN) – Q2FY27 Result Update – Earnings quality remains superior among PSBs – BUY
Published on 16 Oct 2026
INBK saw decent quarter as core PPoP was 4% ahead led by slight beat on NII, fees and opex; asset quality too was steady. FCNR(B) deposits were INR225bn and excluding leverage, credit growth was 2.9% QoQ that was mainly driven by RAM segments. Bank sounded confident to maintain its credit momentum; it raised loan growth guidance for FY27E from 11-13% to 14-15%; we are factoring 16% YoY. LDR at 81% and CET-1 of 15% suggests that domestic growth run-rate could sustain. NIM is expected to increase by 5-6bps in Q3FY27 due to repo hike. We keep multiple at 1.3x on Sep’28 ABV and maintain TP at INR 1,000. Retain ‘BUY’
