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.
tnx for the info. I am always ready for PSU banks. Great return on investment.
Comment by silentthunder — December 4, 2006 @ 4:18 pm
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.
Comment by Ramanathan — January 26, 2007 @ 11:02 am
thank you ram for this wonderful Insight… although I do not share your euphorism that it will touch 200, but I do think that its listing should be at around 100/-
Comment by pegasus — January 26, 2007 @ 11:20 am
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.
Comment by Madhusudhan — January 26, 2007 @ 3:15 pm
Hey Pals…when they r going to list this….
Comment by KADIR — February 19, 2007 @ 3:54 pm
hi .
i didn’t get the share of Indian bank till now..
did anybody get ?
Comment by amit — February 22, 2007 @ 12:26 pm
I have got 75 indian bank alloted, just got it today.
Comment by Anonymous — February 23, 2007 @ 12:28 pm
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
Comment by GURPREET — February 23, 2007 @ 7:03 pm
AS FROM THE ALLOTMENT OF THE SHARES IN IPO LOOKS LISTING PRICE NEAR ABOUT 100-110. THIS BANK SECTOR SHARE WILL GIVE MORE PROFIT IN SHORT-LONG-TERMS [6 MONTHS].
Comment by Sasndep — February 24, 2007 @ 4:26 am
I have heard that indian bank is going to open at around 115-120 & in 2 months it will go upto 180-190.
Comment by Harsh — February 25, 2007 @ 10:21 am
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.
Comment by Bharat Jain — February 26, 2007 @ 2:54 pm
at what price indian bank shares is alloted & wen its going to list
Comment by NIMESH.N.RUPAREL — February 26, 2007 @ 6:38 pm