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IPO

Indian Bank IPO

Chennai based Indian bank plans to have an IPO in order to sell 8,59,50,000 shares and raise about 800-900 crore. The IPO is expected to hit between 1 to 2nd week of January and is being floated to meet the Basel-II norms of capital adequacy.

Salient Points:
1) It has a infrastructure sharing agreement with Oriental Bank of Commerce and Mumbai-based Corporation Bank.
2) The bank did a business of 70,000 crore each year (a 17% growth over last year).
3) The profits rose last year by 38%, primarily due to 25% increase its credit and a 17% increase in deposits.
4) The bank has an authorized capital of 1,500cr, paid up capital of 343 crore, preferential capital of 400 cr, and has over 2,000 crore in reserves.
5) The Net interest margin of the bank is a healthy figure of 3.57% and its NPA is less than 0.45%.

More updates awaited when I get my hand of the detailed balance sheet and the price band of the IPO is finalized.

13 replies on “Indian Bank IPO”

This will be a good investment for the short term. The pricing is fair given its performance over the last 4-5 years. Should get listed at around 110 and may go upto Rs.175-200 in about 3/6 months on good results during the current financial year. I am factoring in a PE ratio of only 7 for its EPS. A good issue but holding it for long term is your decision. The Bank may not shed its PSU character as the name is the best you can have for a bank in India.

Indian Bank has outdone other banks in recovery of NPAs and its NET NPA is also below 1%. With the real estate boom in Chennai, the Bank is reported to have achieved significant recoveries in NPA by selling off mortgaged real-estate. You may also have noticed scores of SARFAESI advts in Indian Express by several of its branches announcing possession/auction of mortgaged assets. It clearly shows it is tightening its act on the NPA front. The bank seems to have learnt its lessons from the past. Its centenary year is currently on and hence the urge to close the year announcing a record performance would be there. I also share Ram’s assessment that it might do well in the short run.

I TOO GET 75 SHARES TODAY…….I THINK IT LL RS 25 – 35 AS PREMIUM ………….ITS ENOUGH FOR ME .I DONT WANT TO PUT IT FOR LONG. AS U KNOW MARKETING CORRECTION BUT ITS NOT CORRECTION ITS A SIGNAL FOR BEARISH TRENDS FOR ATLEAST 20 DAYS MORE …….BE CAREFUL

Hi ! all readers ,
Can anybody tell me , when this Indian Bank share is going to be listed in market.
I expect a listing of Rs. 105 – 115. Approx.

I just found my way here from Owen’s post about search, where you left a coemmnt.Business Insider should consider using your work (to be charitable). What you posted here compares rather favorably with Owen’s entry of about a week ago. I find it difficult to believe that search on smartphones is at the point where it is making serious incursions into search on laptop or desktop. Regarding other mobile devices, with larger screens, well there is much more potential there! I think there will always be a role for search, find it unlikely that general search will be replaced in total, or nearly so, by specialized apps. Not in the near term

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