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Indian Bank shares are set for a breakout, with SEBI-registered analyst Rajiv Gupta projecting a target price of ₹586 for the stock, following a strong performance in FY25.
Indian Bank stock was up 2.4% at ₹571.30 at the time of writing on Monday.
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The bank reported a 35% year-on-year increase in net profit, reaching ₹10,918 crore, while operating profit rose 13% to ₹18,998 crore.
Indian bank’s net interest income (NII) grew by 8% to ₹25,176 crore, supported by a net interest margin (NIM) of 3.51% in its domestic operations.
Gupta highlighted significant improvements in key profitability ratios, with return on assets (RoA) increasing by 25 basis points to 1.32%, and return on equity (RoE) rising by 152 basis points to 20.76%.
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Operational efficiency improved, with the cost-to-income ratio reducing by 115 basis points to 44.77%.
Gupta also pointed out that asset quality had strengthened, with the slippage ratio declining to 1.11%, down 38 basis points, and credit costs falling to 0.66%, a decrease of 11 basis points.
Gupta's outlook remains bullish on Indian Bank, anticipating continued growth driven by strong financial fundamentals and improved operational metrics.
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On Stocktwits, Sentiment was ‘neutral’ amid ‘normal’ message volume.
Shares of Indian Bank have risen 10.4% so far this year.
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