State-owned Indian Overseas Bank’s (IOB) market capitalization crossed the Rs 1 lakh crore mark for the first time following a 100% rally in the stock over the last six months.
In Friday’s trade, the stock rose over 6.5% to hit a 52-week high at Rs 55.5, backed by heavy volumes on the NSE. A total of 5.71 crore equity shares worth Rs 310.7 crore have changed hands so far.
IOB is the fifth public lender after the State Bank of India (SBI), Bank of Baroda, Punjab National Bank (PNB), and Union Bank of India to cross the market capitalization of Rs 1 lakh crore.
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At 10.56 am, the scrip was trading 3.8% higher at Rs 54.1 on BSE. The stock has risen 35% in the past three months, while it has rallied 105% in the last six months. Meanwhile, the public sector lender surged nearly 400% in the last three years.
In Q3 FY24, IOB reported a 30% rise in net profit at Rs 723 crore for December quarter 2023-24, on the back of improvement in core income and a reduction in bad loans. The bank had earned a net profit of Rs 555 crore in the same quarter a year ago.
Operating profit of the bank improved to Rs 1,780 crore as against Rs 1,540 crore in December 2022.
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Total income increased to Rs 7,437 crore during the quarter under review from Rs 6,006 crore in the same period last year. Interest income also rose to Rs 6,176 crore over Rs 5,056 crore for the quarter ended December 2022.
On the asset quality front, the bank’s gross Non-Performing Assets (NPAs) declined to 3.90% of gross loans by the end of December 2023 from 8.19% a year ago. Similarly, net NPAs or bad loans came down to 0.62% as compared to 2.43% in FY22. As a result, provisions for bad loans declined to Rs 367 crore from Rs 711 crore a year ago.
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