Indian Overseas Bank's Market Cap Surpasses Rs 1 Lakh Crore Milestone Amidst Strong Financial Performance

Indian Overseas Bank (IOB), a state-owned financial institution, achieved a significant milestone as its market capitalization crossed the Rs 1 lakh crore mark for the first time. This achievement follows an impressive 100% rally in the bank’s stock over the past six months.

In Friday’s trading session, IOB’s stock witnessed a remarkable 6.5% surge, reaching a 52-week high at Rs 55.5, supported by substantial trading volumes on the NSE. Notably, 5.71 crore equity shares, equivalent to Rs 310.7 crore, changed hands during the session.

IOB now stands as the fifth public lender, alongside State Bank of India (SBI), Bank of Baroda, Punjab National Bank (PNB), and Union Bank of India, to surpass the Rs 1 lakh crore market capitalization mark.

As of 10:56 am, the stock was trading 3.8% higher at Rs 54.1 on the BSE. Over the past three months, the stock has witnessed a 35% rise, and an impressive 105% rally in the last six months, marking a substantial 400% surge in the last three years.

In Q3 FY24, IOB reported a noteworthy 30% increase in net profit, reaching Rs 723 crore, attributed to improved core income and a reduction in bad loans. The bank’s operating profit also showed improvement, standing at Rs 1,780 crore.

IOB’s total income for the quarter rose to Rs 7,437 crore, showcasing a significant increase from Rs 6,006 crore in the same period last year. The bank’s focus on asset quality was evident as gross Non-Performing Assets (NPAs) decreased to 3.90% of gross loans, a notable improvement from 8.19% a year ago. Provisions for bad loans also declined to Rs 367 crore from Rs 711 crore a year ago, reinforcing the bank’s positive financial trajectory.