IOB, the state-owned Indian Overseas Bank, has achieved a significant milestone by surpassing a market capitalization of Rs 1 lakh crore for the first time. This accomplishment comes on the back of a remarkable 100% surge in the bank’s stock over the past six months.
During Friday’s trading session, the stock saw a substantial increase of over 6.5%, reaching a 52-week high of Rs 55.5. This surge was supported by heavy trading volumes on the NSE, with a total of 5.71 crore equity shares, valued at Rs 310.7 crore, changing hands thus far.
IOB now joins the ranks of the State Bank of India (SBI), Bank of Baroda, Punjab National Bank (PNB), and Union Bank of India as the fifth public lender to achieve a market capitalization exceeding Rs 1 lakh crore.
In the third quarter of the fiscal year 2023-24 (Q3 FY24), IOB reported a 30% increase in net profit, amounting to Rs 723 crore for the December quarter. This growth was primarily driven by improvements in core income and a reduction in bad loans. In the same quarter of the previous year, the bank had recorded a net profit of Rs 555 crore.
Furthermore, the bank’s operating profit witnessed a positive trend, rising to Rs 1,780 crore in December 2023, compared to Rs 1,540 crore in December 2022.
Total income for the quarter under review rose to Rs 7,437 crore, up from Rs 6,006 crore during the same period last year. Additionally, interest income increased to Rs 6,176 crore, surpassing the Rs 5,056 crore recorded in the quarter ending December 2022.
IOB also demonstrated improvements in its asset quality. The bank’s gross Non-Performing Assets (NPAs) decreased to 3.90% of gross loans by the end of December 2023, compared to 8.19% a year ago. Similarly, net NPAs, or bad loans, decreased to 0.62%, down from 2.43% in FY22. Consequently, provisions for bad loans declined to Rs 367 crore from Rs 711 crore in the previous year.
It’s good. Will there be any announcement regarding divident for whice shareholders are waiting since last several years ?