YES SecuritiesTarget: ₹1,050CMP: ₹842.05Indian BankNet Interest Margin (Global) was at 3.29 per cent, up 6 bps q-o-q and 6bps y-o-y. Yield on advances was at 8.09 per cent, up by 2bps q-o-q but down -49bps y-o-y. The bank has remained cautious on thinly priced loans, either exiting the loans or improving rates.The bank may achieve the upper end of the prior guidance of 3.1-3.25 per cent. Incrementally, MCLR could impact margin negatively by 2 bps, ceteris paribus.Management does not see any trigger for margin to either go up or down from here. Advances are up 2.6 per cent q-o-q and 13.9 per cent y-o-y.Management stated that one should be mindful of the gap between credit and deposit growth and the same should not start eating into net interest margin.Gross NPA additions amounted to ₹1,300 crore for Q1-FY27 (₹1,390 crore during Q4-FY26), translating to an annualised slippage ratio of 0.77 per cent for the quarter.Provisions were ₹1,190 crore, down by -2.5 per cent q-o-q but up 73 per cent y-o-y, translating to calculated annualised credit cost of 72bps. The bank has also made an incremental floating provision of ₹1,000 crore towards ECL during the quarter.We maintain Buy rating on with a revised price target of ₹1,050. We initiated Indian Bank with Buy, in our report released in March 2022, since then, it has returned nearly 6x. We value the bank at 1.4x FY28 P/BV for an FY27/28/29E RoE profile of 15.9/15.6/15.1 per cent.Published on July 13, 2026