INDIANB
Mid CapIndian Bank
Financial Services
Indian Bank is a public sector bank offering a range of financial services. The Q4FY26 and FY26 results presentation highlights robust business growth, significant asset quality improvement, and continued digital expansion, alongside some margin compression.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 30/100Rev +10% YoY · PAT +6% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹17,488 Cr | +10.3% | +2.3% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹3,174 Cr | +6.4% | +0.8% |
| PAT margin | 18.1% | -65 bps | -26 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Indian Bank reports strong Q4FY26 business growth with advances up 13.43% YoY and deposits up 12.29% YoY. Asset quality improved significantly with GNPA at 1.98% and NNPA at 0.15%. Net Profit grew 4.97% YoY, but NIM and RoA saw slight sequential and annual declines.
The bank demonstrated healthy business expansion and substantial asset quality improvement, with GNPA falling below 2%. While NIM and profitability ratios saw minor compression, the overall performance indicates a stable trajectory, supporting the existing investment thesis.
Domestic Advances by Sector (as on 31.03.2026)
Latest issuer-disclosed distribution across 4 reported categories.
RAM Segment Growth
Total RAM advances grew 15.18% YoY to ₹4.04 lakh Cr, with Retail up 18.72%, Agriculture up 11.28%, and MSME up 16.39% YoY.
Digital Business Expansion
Digital business grew ~1.6x YoY to ₹2,72,302 Cr in FY26, with strong growth in digital vehicle, home, jewel, MSME, and tractor loans.
Infrastructure & Trade Advances
Infrastructure advances grew 23.7% YoY and Trade advances grew 47.4% YoY in FY26.
Priority Sector Lending
Bank surpassed all mandatory RBI targets for Priority Sector advances, demonstrating strong focus and execution.
Business Correspondents (BCs)
Increased BC network to 17,032 as of Mar'26, up from 14,667 YoY.
Senior Konnect Branches
Opened 102 Senior Konnect branches in FY26, totaling 365 since amalgamation.
Robust Digital Adoption
Significant YoY growth in digital business and transactions across various loan products and banking services.
Improving Asset Quality
Consistent reduction in GNPA and NNPA ratios, with PCR remaining high, indicating strong balance sheet clean-up.
Strategic Priority Sector Focus
Meeting and exceeding RBI's priority sector lending targets, aligning with national development goals and potential for stable growth.
NIM Compression
Domestic NIM declined both YoY and QoQ in Q4FY26, and for the full FY26, indicating pressure on interest margins.
Profitability Ratio Decline
RoA and RoE saw slight declines both YoY and QoQ in Q4FY26 and for the full FY26.
NBFC Advances Decline
Total NBFC advances declined 13.2% YoY to ₹54,015 Cr, potentially impacting growth in this segment.
Slippage Ratio Volatility
Slippage ratio increased QoQ to 0.96% in Q4FY26 from 0.69% in Q3FY26, despite a YoY improvement.
Lower Recovery Targets
FY27 recovery guidance for total recovery (₹4500-₹5500 Cr) and AUC (₹1200-₹1500 Cr) is lower than FY26 actuals.
Yield on Advances Decline
Yield on advances declined to 8.07% in Q4FY26 from 8.64% in Q4FY25, indicating potential pressure on asset yields.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both YoY and QoQ comparisons are crucial for financial services. YoY provides insight into annual growth trends and seasonal impacts, while QoQ reveals sequential momentum in business, asset quality, and profitability metrics like NIM and credit cost.
AUM Growth (Total Business)
Total business grew 12.79% YoY to ₹14.95 lakh Cr in FY26, and 4.55% QoQ in Q4FY26.
Advances Growth
Advances grew 13.43% YoY to ₹6.67 lakh Cr in FY26, and 4.42% QoQ in Q4FY26.
Deposits Growth
Deposits grew 12.29% YoY to ₹8.28 lakh Cr in FY26, and 4.65% QoQ in Q4FY26.
Domestic NIM
Domestic Net Interest Margin (NIM) was 3.35% in Q4FY26, down 5 bps YoY and 5 bps QoQ. FY26 Domestic NIM was 3.36%, down 15 bps YoY.
FY27 Advances Growth Target
Management targets 11% to 13% advances growth for FY27.
FY27 GNPA Target
Management aims for GNPA % between 1.50% and 1.60% for FY27.
FY27 CASA Ratio Target
Management targets a CASA ratio of >40% for FY27.
FY27 NIM Target
Management expects NIM to be between 3.10% and 3.25% for FY27.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| GNPA % | 1.98% (Q4FY26) | Watch for management's FY27 target of 1.50% - 1.60%. |
| Domestic NIM | 3.35% (Q4FY26) | Watch for management's FY27 target of 3.10% - 3.25%. |
| Advances Growth | 13.43% (FY26) | Watch for management's FY27 target of 11% - 13%. |
| CASA Ratio | 39.67% (Q4FY26) | Watch for management's FY27 target of >40%. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
49NeutralSMA20 -1.9% / mo
Technical chart
INDIANBdaily · 1Y+0.8%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 59. Wait for confirmation.
- SMA20 falling (~6.9% over last month) — short-term momentum negative.
- RSI(14) at 59 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 13% off 52W high · 15% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 16.2%.
- Fair-value margin of safety is positive at 69.4%.
- Cash flow contributes 9/10 to the score.
Main drags
- Quality is weaker at 7/20; verify the latest quarterly trend.
- Balance sheet is weaker at 11/15; verify the latest quarterly trend.
- Valuation is weaker at 24/30; verify the latest quarterly trend.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 91st percentile of the scored universe and 96th percentile within Financial Services. Main check: financial discipline is weak at 56/100.
High Trust Lite: Promoter holding is 73.8%. Key concern: ROCE is low at 6.3%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Financial Services: 96th pctile, median 62 · Mid: 68th pctile, median 76
106 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 73.8%.
- ▸Promoter pledge is zero.
- ▸FCF yield is 16.2%.
- ▸6 years of positive FCF.
Trust risks
- ▸ROCE is low at 6.3%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 9.70
- P/B
- 1.42
- EV/EBITDA
- 263.31
- Market Cap
- 113549.00Cr
Profitability
- ROE
- 15.40%
- ROCE
- 6.32%
- ROA
- 1.18%
- Dividend Y
- 2.16%
Growth (CAGR)
- Revenue 5Y
- 12.00%
- EPS 5Y
- 30.00%
- Revenue 3Y
- 14.00%
- EPS 3Y
- 28.00%
Balance Sheet
- Debt/Equity
- 0.06
- Interest Coverage
- —
- Altman Z
- 1.89
- Book Value
- 594.00
Cash Flow
- FCF Yield
- 16.19%
- FCF Positive Y
- 6/5
- OCF
- 18815.00 Cr
- EPS TTM
- 86.89
Shareholding
- Promoter Hold
- 73.84%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 60%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.