Indian Bank drops on profit booking

Indian Bank fell 1.99% to Rs 182.50 at 13:46 IST on BSE, with the stock sliding on profit booking after surging by the maximum permissible 20% level yesterday, 2 August 2016.

Meanwhile, the S&P BSE Sensex was down 238.78 points, or 0.85%, to 27,742.93.

On BSE, so far 5.73 lakh shares were traded in the counter, compared with an average daily volume of 72,942 shares in the past one quarter. The stock hit a high of Rs 199.40 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 180 so far during the day. The stock hit a 52-week low of Rs 76 on 29 February 2016. The stock had outperformed the market over the past one month till 2 August 2016, rising 31.54% compared with 3.08% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 92.16% as against the Sensex's 10% rise.

The mid-cap state-run bank has equity capital of Rs 480.29 crore. Face value per share is Rs 10.

Shares of Indian Bank surged 20% to settle at Rs 186.20 yesterday, 2 August 2016, after the bank announced surge in bottom line in Q1 June 2016. Indian Bank's net profit rose 42.77% to Rs 307.36 crore on 0.4% rise in total income to Rs 4512.96 crore in Q1 June 2016 over Q1 June 2015. The result was announced during trading hours yesterday, 2 August 2016.

The bank's provisions and contingencies (excluding tax provisions) rose 2.2% to Rs 416.99 crore in Q1 June 2016 over Q1 June 2015. Provision coverage ratio stood at 53.89% as on 30 June 2016.

The bank's gross non-performing assets (NPAs) stood at Rs 8894.24 crore as on 30 June 2016 as against Rs 8827.04 crore as on 31 March 2016 and Rs 5815.15 crore as on 30 June 2015. The ratio of gross NPA to gross advances stood at 6.97% as on 30 June 2016 as against 6.66% as on 31 March 2016 and 4.65% as on 30 June 2015. The ratio of net NPA to net advances stood at 4.48% as on 30 June 2016 as against 4.2% as on 31 March 2016 and 2.62% as on 30 June 2015.

Meanwhile, Indian Bank announced after market hours yesterday, 2 August 2016, that its board of directors approved raising upto Rs 1000 crore by issuing Basel III compliant AT 1 and/or Tier 2 Bonds in one or more tranches in the current or subsequent years based on the requirement.

Government of India currently holds 82.1% stake in Indian Bank (as on 30 June 2016).

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