Indian Bank Share Price Today Reverses Gains! PSU Stock Down 2% Despite Robust Q1 | What Should Investors Do?

Indian Bank Share Price Today: Shares of Indian Bank reversed their gains during Monday's intraday trading session after seeing sharp rally post first quarter result euphoria. The PSU Bank stock surged close to 9% in the previous trading session after Indian Bank reported strong Q1 profit, improvement in Net Interest Margin (NIMs) and healthy asset growth.

Indian Bank share price today was trading 1.83% lower at Rs 855 per share on BSE with a market capitalisation of Rs 1,15,165.42 crore at 10:38 am on Monday, July 13. The PSU bank stock had touched an intraday high of Rs 871 per share and an intraday low of Rs 852.35 per share.

Indian Bank Q1 Result Review

Higher-than-expected provisions helped Indian Bank improve its profitability in the first quarter of FY27. NII grew by 17% on a year-on-year basis, and NIM improved by 6 bp on a sequential basis to 3.29%.

Indian Bank reported an in-line quarter, which was supported by strong traction in other income, and the bank is likely to see a 100 bp increase in standard asset provisioning expected on a steady-state basis owing to ECL provisioning.

"The bank maintains a best-in-class PCR, providing comfort in incremental credit costs. Further, the transition to ECL is expected to have a manageable impact alongside minimal increase in steady-state credit costs. We fine-tune our earnings estimates and expect the bank to deliver FY27E RoA/RoE of 1.3%/18.2%," as per Motilal Oswal report.

Indian Bank Share Price Recommendation

Motilal Oswal maintained a 'Buy' rating for Indian Bank with a target price of Rs 1,025 per share. "Reiterate BUY with an unchanged TP of INR1,025 (premised on 1.4x Mar'28E BV)."

Indian Bank Q1 Result Recap

The Chennai-headquartered bank reported a 10% annual surge in its net profit to Rs 3,273 crore in the first quarter of financial year 2026-27. The PSU lender reported a 13.89% surge in gross advances. Its deposits surged by 13.47% anchored by a robust CASA share of 39.73%. Indian Bank's asset quality remained resilient, with gross non performing assets (GNPA) ratio standing at 1.86%.

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