 "Indian Bank")
Shares of Indian Bank slipped 8 per cent to Rs 393.55 on the BSE in Thursday’s intra-day trade after 101.5 million equity shares of the company, allotted to qualified institutional buyers (QIBs), got listed on the stock exchanges today.
The stock of the public sector bank has dipped 12 per cent in the past two trading days. While, it has corrected 15 per cent from its record high level of Rs 462.75 touched on November 15.
The committee of directors on capital raising of the bank, in its meeting held on December 16, 2023, approved the QIP issue and allotment of 101.52 million new equity shares of face value Rs 10 each to eligible qualified institutional buyers (QIBs) at an issue price of Rs 394 per equity share. The bank raised Rs 4,000 crore through the QIP.
Indian Bank allotted more than 5 per cent of the equity shares offered in the QIP to Society Generale – ODI (9.8 million or 9.65 per cent) and ICICI Prudential and its various schemes (6.79 million or 6.68 per cent).
Meanwhile, despite the 15 per cent correction from its record high level, Indian Bank has outperformed the market by surging 45 per cent in the past six months. In comparison, the S&P BSE Sensex was up 10.6 per cent during the period.
Indian Bank had reported a healthy performance with in-line earnings in September quarter (Q2FY24), supported by healthy loan growth (particularly in the Retail, Agri, and Corporate segments), healthy other income and contained provisions.
MCLR book stands at 64 per cent, which could cushion the funding cost impact from continued repricing of deposits.
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The bank expects the growth trend to remain steady and will continue to focus on profitable growth.
Asset quality ratios improved further as the bank maintains the best-in-class coverage ratio, which, along with low SMA book, provides comfort on incremental credit costs, said Motilal Oswal Financial Services in a result update.
