Indian Bank Short Term Buy Call

Indian Bank Short Term Buy CallTechnical analyst Shrikant Shetty of Unicon Securities has maintained 'buy' rating on Indian Bank stock to achieve a short term target of Rs 275.

Today, the stock of the bank opened at Rs 215 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 39.21and 5.51 respectively.

As per reports, Indian Bank has decided to launch 10 e-branches branches 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, operation costs in these divisions would descend by 60%.

Moreover, these e-branches will finish off manual intervention and thus cut down the operations cost.

As against a conventional division, which would need around 1,500 sq. ft space, Mr. Bhasin said that these divisions (e-branches) would be established in 400 sq. ft. and provide an ATM with facilities to both take out and deposit cash plus a cheque drop machine.

The overall cost of establishing these branches will be around Rs 11 lakh.

For Oct-Dec 2010 period, Indian Bank posted an increase of 11.31% in its net profit, which stood at Rs 4,912.94 million as against Rs 4,413.82 million during the same period last year.