Technical analyst Sanjay Surekha has maintained 'buy' rating on Indian Bank stock to achieve a target of Rs 240.

According to analyst, the stock can be purchased on dips with a stop loss of Rs 215.

The stock of the bank, on March 08, closed at Rs 223.10 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 316.50 and a low of Rs 163 on BSE.

Current EPS & P/E ratio stood at 39.21 and 5.80 respectively.

With big savings in transaction cost in its aimed e-divisions, Indian Bank has decided to launch 10 such arms by March next year.

Mr. T. M. Bhasin, CMD, Indian Bank stated, "Our focus is on reducing the transaction cost and opening more e-branches in future so that people can get 24-hour service."

According to Mr. Bhasin, transaction costs in these e-divisions would drop by 60%.

These new arms will dispose of manual intervention and thus cut down the operations cost.

Moreover, the bank has inked a deal TVS Motor Company for funding the vehicles of the company.

Mr. Bhasin added that the memorandum of understanding (MoU) will aid to take three wheeler drivers into structured banking and heighten Bank's collateral free lending.

Via this affiliation with TVS Motor Company, Indian Bank's loan book by March this year would surge to Rs 100 million and it is likely to hit Rs 750 million by coming fiscal.