State-owned Indian Bank reported strong provisional business performance for the third quarter of FY26, demonstrating sustained growth across key balance-sheet parameters. The bank informed stock exchanges about its double-digit growth in total business and advances, reflecting robust operational momentum during the December quarter.

Q3 FY26 Business Performance

The bank's comprehensive business metrics showed consistent expansion across all major categories:

Deposit growth exceeded management's guided range of 8% to 10%, indicating strong customer confidence and market positioning. Gross advances demonstrated strong momentum with 14.50% year-on-year growth, reflecting sustained credit expansion and the bank's ability to maintain lending momentum in a competitive market environment.

RAM Portfolio and Strategic Focus

The bank's Retail, Agriculture and MSME (RAM) portfolio, representing a strategic focus area for public sector banks, delivered impressive results:

This 17.00% growth in the RAM segment underscores the bank's commitment to priority sector lending and its success in expanding its retail and MSME customer base.

Q2 FY26 Financial Results

In the second quarter, the state-owned lender reported financial performance with mixed results:

The bank's advance portfolio grew 12.70% year-on-year to ₹6.20 lakh crore while total deposits expanded by 12.00% to ₹7.77 lakh crore during the second quarter.

Market Performance and Ratios

The domestic CASA (Current Account Savings Account) ratio moderated to 39.02% in Q3 FY26 from 40.00% in the same quarter of the previous year. In Q2, the CASA ratio fell to 38.90% from 40.50% a year back, reflecting the challenge banks are facing in low-cost deposit mobilisation.

Shares of Indian Bank gained nearly 60% in the calendar year, demonstrating strong investor confidence in the bank's performance and growth trajectory. The bank emphasized that all reported figures are provisional and subject to audit verification.

Market analysts and brokerage firms have identified high-conviction trading ideas for the upcoming session, focusing heavily on the banking and metal sectors. While the consensus points to buying opportunities in state-owned lenders and steel majors, analysts have also flagged a selling opportunity in the credit card segment.

Banking Sector Recommendations

Indian Bank

Indian Bank emerged as a consensus top pick with two analysts recommending a buy. The stock attracted positive attention from multiple research houses with varying target prices and risk management levels.

Raja Venkatraman, Co-Founder of NeoTrader, advised buying the stock at ₹809.00 with a target of ₹825.00 and a stop loss of ₹798.00. Ruchit Jain, Vice President of Equity Technical Research at Motilal Oswal, was even more bullish, recommending a buy with a higher target of ₹840.00 and a stop loss placed at ₹787.00.

Bank of Baroda

Rajesh Palviya, SVP - Technical and Derivatives Research at Axis Securities, placed a buy rating on another public sector lender, Bank of Baroda. He recommended entering at ₹293.00 for a target of ₹300.00, with a stop loss maintained at ₹288.00.

Metal Sector Opportunities

SAIL

Palviya also identified value in the metal space, suggesting a buy on SAIL. He set a target price of ₹148.00, advising a stop loss at ₹137.00 for an entry price of ₹141.00.

JSW Steel

Continuing the bullish sentiment on metals, Vinay Rajani, Senior Technical & Derivative Analyst at HDFC Securities, recommended buying JSW Steel at ₹1,111.00. He set a target of ₹1,140.00, with a stop loss placed at ₹1,090.00.

Credit Card Sector Caution

SBI Cards

Bucking the trend of buy calls, Raja Venkatraman suggested a short position on SBI Cards. He recommended selling the stock at ₹846.00 for a target of ₹830.00, placing a stop loss at ₹855.00.

Trading Summary

The analyst recommendations span across key sectors with a clear preference for banking and metal stocks. The recommendations provide specific entry points, target prices, and risk management levels through stop-loss orders, offering traders structured approaches for the upcoming session.