NSEI:INDIANB

Stock Analysis Report

Executive Summary

Indian Bank provides various banking product and services.

Rewards

PE ratio (4.5x) is below the Indian market (13.4x)

Earnings grew by 54% over the past year

Risk Analysis

Earnings have declined by -8.64% per year over past 5 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet with proven track record.


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Share Price & News

How has Indian Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: INDIANB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.0%

INDIANB

-1.3%

IN Banks

-0.4%

IN Market


1 Year Return

-60.1%

INDIANB

9.6%

IN Banks

11.1%

IN Market

Return vs Industry: INDIANB underperformed the Indian Banks industry which returned 9.6% over the past year.

Return vs Market: INDIANB underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

INDIANBIndustryMarket
7 Day-12.0%-1.3%-0.4%
30 Day-16.8%-3.1%-1.5%
90 Day-28.6%-1.6%3.3%
1 Year-60.1%-60.1%10.0%9.6%13.0%11.1%
3 Year-70.3%-70.8%14.8%13.5%25.3%18.6%
5 Year-52.3%-54.9%10.8%7.3%35.4%23.1%

Price Volatility Vs. Market

How volatile is Indian Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Indian Bank undervalued compared to its fair value and its price relative to the market?

4.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate INDIANB's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate INDIANB's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: INDIANB is good value based on its PE Ratio (4.5x) compared to the Banks industry average (18.8x).

PE vs Market: INDIANB is good value based on its PE Ratio (4.5x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate INDIANB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: INDIANB is good value based on its PB Ratio (0.2x) compared to the IN Banks industry average (0.6x).


Next Steps

Future Growth

How is Indian Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.4%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Indian Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Indian Bank performed over the past 5 years?

-8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INDIANB has high quality earnings.

Growing Profit Margin: INDIANB's current net profit margins (16.7%) are higher than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: INDIANB's earnings have declined by -8.6% per year over the past 5 years.

Accelerating Growth: INDIANB's earnings growth over the past year (54%) exceeds its 5-year average (-8.6% per year).

Earnings vs Industry: INDIANB earnings growth over the past year (54%) exceeded the Banks industry 25.5%.


Return on Equity

High ROE: INDIANB's Return on Equity (4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Indian Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: INDIANB has a low level of unsold assets or inventory.

Debt Coverage by Assets: INDIANB's debt is covered by short term assets (assets are 1.3x debt).


Financial Institutions Analysis

Asset Level: INDIANB's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if INDIANB has a sufficient allowance for bad loans.

Low Risk Liabilities: INDIANB's liabilities are made up of primarily low risk sources of funding.

Loan Level: INDIANB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: INDIANB's loans are broadly funded by customer deposits.

Level of Bad Loans: INDIANB has a high level of bad loans (7.5%)


Next Steps

Dividend

What is Indian Bank's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate INDIANB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate INDIANB's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if INDIANB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if INDIANB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: INDIANB is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of INDIANB's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Padmaja Chunduru (58yo)

1.4yrs

Tenure

₹3,225,235

Compensation

Ms. Padmaja Chunduru has been a Director at Life Insurance Corp. of India since November 16, 2018. She is the Managing Director, Chief Executive Officer and Director of Indian Bank since September 21, 2018 ...


CEO Compensation Analysis

Compensation vs Market: Padmaja's total compensation ($USD45.10K) is below average for companies of similar size in the Indian market ($USD397.73K).

Compensation vs Earnings: Insufficient data to compare Padmaja's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Padmaja Chunduru
MD, CEO & Director1.4yrs₹3.23mno data
M. Bhattacharya
Executive Director3yrs₹2.63mno data
Shenoy Vittal
Executive Director1.2yrs₹2.57mno data
P. Krishnan
GM of Accounts & CFO3.8yrsno datano data
S. Ravi
GM of ITD & CTO0.6yrsno datano data
Bimal Shah
Compliance Officer & Company Secretary2.6yrsno datano data
Paresh Dash
General Manager of HRM & HRD1.1yrsno datano data
K. Udaya Reddy
G.M of RMD & CRO1.7yrsno datano data
Sudhakar Iyer
GM & Chief Vigilance Officer1.1yrsno datano data

1.4yrs

Average Tenure

58yo

Average Age

Experienced Management: INDIANB's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Padmaja Chunduru
MD, CEO & Director1.4yrs₹3.23mno data
M. Bhattacharya
Executive Director3yrs₹2.63mno data
Shenoy Vittal
Executive Director1.2yrs₹2.57mno data
Bharath Sankar
Shareholder Director2.2yrsno data0.000030% 15.5k
Salil Jha
Part-Time Non-Official Director2.2yrsno datano data
Vinod Nagar
Shareholder Director5.6yrsno data0.000020% 10.3k
Padmanaban Dass
Part-Time Non-Official Director0.3yrsno datano data
Santosh Panigrahy
Nominee Director0.8yrsno datano data
Sanjeev Kaushik
Government Nominee Director0.08yrsno datano data

1.4yrs

Average Tenure

58yo

Average Age

Experienced Board: INDIANB's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

Company Information

Indian Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Indian Bank
  • Ticker: INDIANB
  • Exchange: NSEI
  • Founded: 1907
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹51.718b
  • Shares outstanding: 608.80m
  • Website: https://www.indianbank.in

Number of Employees


Location

  • Indian Bank
  • 254-260, Avvai Shanmugam Salai
  • Royapettah
  • Chennai
  • Tamil Nadu
  • 600014
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532814BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2007
INDIANBNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2007

Biography

Indian Bank provides various banking product and services. The company provides deposit products, including savings and current accounts, term deposits, and Non Resident Indian (NRI) accounts. It also offers agriculture, group, personal/individual, micro small and medium enterprises, education, and NRI loans. In addition, the company provides net, mobile, and phone banking, as well as Ministry of Corporate Affairs payment, money gram, money transfer, remittance, and multicity check facility services; debit and credit cards; insurance services; direct and indirect tax payment services; debenture trustee services; and merchant banking and housing finance services. As of March 31, 2019, it operated 2,872 branches comprising 737 rural, 824 semi urban, 633 urban, and 678 metropolitan branches in India; 3 foreign branches in Singapore, Colombo, and Jaffna; and 2,849 automated teller machines. Indian Bank was founded in 1907 and is based in Chennai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:57
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.