NSE Symbol: INDIANB | BSE Code: 532814
Indian Bank Share Price Performance
Indian Bank Stock Trends - 2018
In January 2018, Indian bank's opening stock price was Rs.376.25 on the NSE. Throughout the first three weeks, the share price increased to touch the Rs.400 mark. However, it was a short-lived achievement as the stocks ended up shedding most of those gains in the last week of the January when the closing price was Rs.362.60.
Further, in February, Indian bank lost more than 15%, driven mainly by the disturbance in the international markets. This continued till the first week of March when the stock price eventually descended below Rs.300. However, the shares recovered slightly and the quarter closed at Rs.299.80.
In April and May of 2018, the Indian Bank share price fluctuated between Rs.302 to Rs.350. The stocks proceeded through their typical pattern of ups and downs but the share price was above the Rs.300 mark.
The prices rose handsomely in the first week of June and the share prices improved by around 20% within a span of 10 days and touched the Rs.370 mark. However, throughout the next few weeks, the Indian Bank share price dropped again to Rs.320.
At the end of July, the shares again rose to around Rs.370. However, it went on a downward path in late August and dropped to Rs.330.
Indian Bank Stock Trends (2016 and 2017)
At the beginning of 2016, the Indian Bank share price was around Rs.115. The price fell by 20% over the first two months of the year and descended to Rs.75. However, the prices recovered in March to ascend back into the Rs.100 region.
Through the months of April and May, the stock price fluctuated between Rs.90 to Rs.100. In June, the shares grew more than 35% to reach up to Rs.141.20 by the end of the month. Simultaneously, Indian bank also announced a final dividend of 15%.
The stocks continued to rise in July and August as well and the investors enjoyed remarkable gains during this period. The closing price of Indian Bank shares at the end of the August was Rs.224.
The share prices remained quite steady for the rest of the year. Although the stock prices fluctuated between Rs.210 to Rs.250, it closed at around Rs.220 at the end of 2016. Since the beginning of the year, the shares had delivered over 90% returns.
2017 proved as another landmark year for the Indian Bank shares. The share price rose above Rs.300 in January and February but met with a gradual decline in March and April.
By the end of June, the shares went back to their previous levels at around Rs.280 to Rs.290. The bank announced a final dividend of 60% in this month.
This trend remained from July to most of October, during which the shares lost close to 5% but managed to hold the prices above Rs.270. Indian Bank shares had a sharp spike in October.
The shares continued to rise and managed to achieve more than 60% to exceed Rs.400 mark in November. It remained steady above Rs.400 for a couple of weeks and reached its 52-week high at Rs.427.40. Yet the prices slightly declined towards the end of the year and closed at Rs.376.70.
Indian Bank Company Information and Brief History
A public sector bank under the Indian Government, Indian Bank was established on March 5, 1907, under the Indian Companies Act of 1882. It commenced its business formally on August 15th, 1907, in Chennai (then known as Madras). In 1932, Indian bank inaugurated its first overseas branch in Colombo, Sri Lanka. Around a decade later, in 1941, it opened a branch at Singapore branch. Subsequently, focusing on expanding its operations, Indian bank acquired several other banks, such as Trichy United Bank, Salem Bank, etc., in 1962. It was nationalized in 1969. Indian Bank share price fluctuates at every moment and thus it is very important for all potential investors to keenly study the performance of the company’s shares before investing in it.
Indian Bank offers a broad range of banking and financial services, such as deposits, insurances, loans, credit cards and debit cards, remittance, wealth management, etc. It also operates in various segments, such as personal, corporate, retail, agriculture, NRI and even SMEs. The bank currently has over 2,800 branches that offer core banking solutions. Moreover, Indian Bank has a very strong international presence with over 200 overseas correspondent banks in 75 countries. The market capitalization of Indian Bank was close to Rs.16,000 crore as per the reports in August 2018.
Company’s Wealth and Performance
In the first quarter of FY 2018-19, Indian Bank’s net interest income grew from Rs.1460 crore to Rs.1807 crore, by 23.8% y-o-y. Considering the interest income in this period, it increased from Rs.4136 crore to Rs.4692 crore, by a little over 13% y-o-y.
Considering the operating profit for the first quarter of FY 2018-19, it rose by 3.6% from Rs.1298 crore to Rs.1252 crore. Simultaneously, its total balance sheet increased by 14.4% y-o-y to Rs.250754 crore.
However, the net profit for the same period was at Rs.209.32 crore, which was a reduction of over 40% with respect to that of the same quarter in the previous year. Such a drastic reduction in net profit came on account of a considerable increase in provisions and contingencies. The net profit for the quarter was at Rs.1297.5 crore, as against Rs.715.5 crore that was reported in quarter 1 of FY 2017-18.
Regarding the asset quality in the June quarter, the gross NPA was at 7.20% as against 7.37% that was reported in the March quarter. The net NPA witnessed a tiny reduction q-o-q from 3.81% to 3.79%.
Should you invest in Indian Bank?
Indian Bank, an Indian public sector bank based in Chennai, has been in the banking business for more than a century. It provides a plethora of banking and financial services.
Indian Bank has performed well financially in the previous financial year and reported a net profit of Rs.1258.9 crore. In the June quarter of 2018-19, Indian Bank's net profit was somewhere around Rs.209.3 crore, which marked a sizeable reduction in profit when compared to the profit in the previous year's same quarter. This drop was mainly due to an increase in provisions and coverage.
Indian Bank's performance, in comparison with its peers in the public banking sector, giver it a lower rank in terms of net interest income and total assets. However, considering the net profit, very few banks have reported a profit for the previous FY and Indian Bank is one among them.
A similar positive trend was noticed in the Indian Bank share price as well. In 2016, the shares gave returns worth over 80% while and 60% in 2017. It proved to be one of the well-performing stocks in the Nifty 200 by August 2018.
Thus, it may be a viable idea to invest in Indian Bank stocks, although it may seem quite expensive at its present levels. It would be wiser to accumulate the stocks at dips. However, an investor must do his/her own research before investing.