Indian Bank's Q4FY18 standalone net profit declines 58.7% yoy to Rs132cr : Misses Estimates

India Infoline Research Team | May 10, 2018 16:55 IST

The bank’s standalone NII stood at Rs1,637.70cr, up 18.25% yoy and 0.92% qoq.

Indian Bank Q4FY18

Standalone Results Q4FY18: ( cr)

Q4FY18 YoY (%)
NII 1,637.70 18.3
NPA (%) 7.4 [10]
Provisions 1,546 91.6
Net Profit (adjusted) 132 [58.7]
***NPA change is bps
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Buy

Reco. Price

342

Last updated on

09-May-2018

The bank’s Q4FY18 NII has improved by 18.3% yoy to Rs1,637.7cr against Rs1,384.9cr in corresponding period last year. The net profit was below estimates, which has declined by 58.7% yoy to Rs132 cr against Rs319.7cr yoy. GNPA for Q4FY18 stands at 7.37% against 6.27% qoq, which has increased by 110 bps. NNPA for the quarter stands at 3.81% against 3.3% qoq, which has increased by 51bps. 
  • Credit growth for FY18 was at ~24% yoy and the management guided for 20% yoy credit growth for FY19E. This growth was mainly due to RAM segment (Retail, Agri & MSME), which grew by 27% yoy.
  • The corporate to retail ratio for the bank in FY18 stood at 42:58, which it intends to bring down to 40:60 in FY19E.
  • Management expects that its slippages in FY19E to come down. Further, it has guided for 6% GNPA by FY19E end. Sell to ARCs, credit growth and resolution of NCLT cases would aid in GNPA decline.
  • The  stress assets ratio has come down from 10.74% to 8.65% yoy.
  • The total security receipts outstanding is at Rs2,600cr for FY18 end.
  • The slippages for Q4FY18 came at Rs2,098cr as against Rs955cr in the corresponding period last year.
  • NIM for the quarter came at 2.9%, up by 5bps qoq from 2.85%.


Technical View:

Indian Bank is currently trading at Rs. 317.55, down by 24.4 points or 7.14% from its previous closing of Rs. 341.95 on the BSE.
The scrip opened at Rs. 340 and has touched a high and low of Rs. 345 and Rs. 306.95 respectively. So far 87,82,411 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.


***Note: This is a NSE Chart

 

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