 "Indian Bank market-cap nears ₹1 trillion; stock zooms 43% in CY 2025")
Indian Bank share price today
Shares of Indian Bank hit a new high of ₹739.85, gaining 2 per cent on the BSE in Tuesday’s intra-day trade in otherwise a subdued market. In the past two trading days, the stock price of the public sector bank (PSB) has rallied 5 per cent. In comparison, the BSE Sensex was trading 1.63 points lower at 80,363 at 10:21 AM.
In the past two months, Indian Bank stock has outperformed the market by surging 19 per cent. Thus far in the calendar year 2025, the stock has zoomed 43 per cent, as compared to 0.05 per cent decline in the BSE Sensex.
Indian Bank is now set to enter into an elite club of the PSBs that have a market capitalisation (market-cap) of ₹1 trillion. Indian Bank’s market cap hit ₹99,655 crore in intra-day trade on Tuesday, and less than 1 per cent away to touch the ₹1 trillion mark.
Indian Bank will become the sixth PSBs having a market cap over ₹1 trillion. State Bank of India (SBI) is on top of the list with a market cap of ₹8.08 trillion, followed by Bank of Baroda (₹1.34 trillion), Punjab National Bank (₹1.28 trillion), Canara Bank (₹1.13 trillion) and Union Bank of India (₹1.06 trillion).
Indian Bank’s outlook, brokerage view
On August 14, 2025, S&P Global Ratings revised upward its assessment of Indian Bank's stand-alone credit profiles (SACP) to 'bbb-' from 'bb+' with a stable outlook.
The rating agency has view that the bank will be able to sustain improvement in its capital buffers over the next two years. Analysts at S&P Global Ratings expect Indian Bank to maintain its risk adjusted capital (RAC) ratio sustainably at 9.0 per cent-9.5 per cent over the next two years, compared with 7.9 per cent as on March 31, 2025. This is due in part to lower risk weights because we have recalibrated risks to reflect India's improved economic environment and the upgrade of the sovereign.
“The stable rating outlook reflects our view that Indian Bank will sustain its improved capital position, as well as our expectation that the likelihood of government support for the bank will remain very high over the next two years. In our view, Indian Bank will maintain solid funding and liquidity over the next two years, supported by high customer confidence,” S&P Global Ratings said in rationale.
Meanwhile, analysts at Motilal Oswal Financial Services (MOFSL) reiterated BUY rating on Indian Bank stock with a revised target price of ₹800, valuing the stock at ~1.3x FY27E ABV.
Indian Bank offers a combination of superior asset quality, steady double-digit loan growth, and one of the most resilient RoA profiles in the PSU space. The robust provisioning buffer and strong capital ratios mitigate risks from the upcoming ECL transition, while the expansion of RAM and digital initiatives provide healthy growth visibility. The bank is well poised to deliver the best-in-class RoA at 1.3 per cent among the brokerage firm’s coverage PSU banks, while RoE is expected to remain healthy at 16-17 per cent. Indian Bank stands out as MOFSL preferred pick among mid-sized PSU banks, offering both defensive stability and structural growth, with potential for sustained outperformance as the market increasingly values consistency and granularity in PSU franchises, the brokerage firm said.