Indian Bank makes a corporate announcement

The NSE-specific carrying value is not separately disclosed in the cited material, so there is no defensible current Rs amount to report. Indian Bank plans to sell up to 15 lakh NSE shares, representing 17.91% of its holding, subject to approvals. ^[1] The Pillar III extract reports investment valuation figures of 13,439.62 and 16,792.99, but does not identify them as the NSE holding or preserve the relevant unit, so neither should be treated as the stake’s carrying value. ^[2]

CET1 impact: a precise estimate is also unavailable because the OFS price, gross proceeds, taxes and accounting treatment of any gain are not disclosed. The latest consolidated CET1 ratio is 16.7% for Q1 FY27. ^[3]

As an illustration only, using FY26 standalone CET1 capital of Rs 71,763.84 Crores and risk-weighted assets of Rs 437,545.57 Crores, every Rs 100 Crores of incremental CET1 capital would increase the ratio by approximately 2.29 basis points, assuming risk-weighted assets are unchanged and the full amount qualifies for CET1. ^[4] Thus:

`CET1 uplift = qualifying net capital benefit ÷ Rs 437,545.57 Crores`

The gross divestment proceeds themselves should not automatically be equated with CET1 accretion: the relevant amount is the qualifying post-tax gain or capital benefit after accounting for the carrying value, any reserves and regulatory deductions.

The latest cited financial statements do not separately disclose the NSE holding’s classification, acquisition cost, or fair value. Therefore, an exact AFS-versus-HTM conclusion and cost-to-fair-value bridge cannot be established from the reported line items.

• HTM eligibility: An equity investment such as NSE shares would not meet the bank’s stated HTM conditions, which require the security to be held to collect contractual cash flows and satisfy the SPPI criterion. ^[5]
• Possible accounting treatment: The bank’s policy states that equity shares are generally classified under FVTPL, except where the bank makes an irrevocable election at initial recognition to classify a non-trading equity instrument under AFS. ^[6]
• Latest reported portfolio disclosure: At June 30, 2026, Indian Bank reported aggregate investments of Rs 248,487 Crores, but the Q1 FY27 balance-sheet disclosure does not identify the NSE investment separately. ^[7]
• Historical cost versus fair value: The latest financial-results extracts do not report the NSE stake’s original acquisition cost or its current fair-value carrying amount. The annual-report policy only says AFS securities are fair-valued at least quarterly, while HTM securities are carried at cost subject to impairment and amortisation rules. ^[8]

Conclusion: The NSE investment should not be described as HTM on the evidence available; if it is a non-trading equity investment, the relevant alternatives under Indian Bank’s policy are AFS, if the irrevocable AFS election was made, or otherwise FVTPL. The specific classification and the two requested values require the investment-portfolio note or schedule that separately identifies NSE shares.

Indian Bank would retain 82.09% of its pre-sale NSE holding if the proposed sale is completed in full. The announced OFS covers up to 15 lakh NSE shares, equal to 17.91% of Indian Bank’s holding; it is subject to regulatory approvals. ^[9]

That equates to approximately 68.75 lakh NSE shares remaining, derived from:

• Implied pre-sale holding: 15 lakh ÷ 17.91% = approximately 83.75 lakh shares
• Remaining holding: 83.75 lakh − 15 lakh = approximately 68.75 lakh shares

This is 82.09% of Indian Bank’s original NSE stake, not 82.09% of NSE’s total equity. Using the reported NSE IPO size of approximately 14.89 crore shares, representing nearly 6% of NSE’s paid-up capital, Indian Bank’s residual ownership is roughly 0.28% of NSE equity; this is indicative rather than an exact reported percentage. ^[10]

† Derived assuming the maximum proposed sale is completed. ‡ Approximate, using the reported IPO size and “nearly 6%” paid-up-capital reference; not a directly reported holding percentage. ^[10]

Comparison: Indian Bank is selling a smaller portion of its own NSE stake than Bank of Baroda—17.91% versus 35%—so it retains a higher proportion. However, Bank of Baroda’s residual holding appears larger in absolute share count, at roughly 1.43 crore shares versus Indian Bank’s approximately 68.75 lakh. A complete peer ranking across the other major public-sector banks is not supportable without their NSE-specific holdings or divestment disclosures.