Indian Overseas Bank Joins ₹1 Lakh Crore Club with 22% Surge in Shares

2 Feb 2024 , 01:18 PM

Indian Overseas Bank (IOB) joins the ranks of public sector lenders surpassing  ₹1 lakh crore in market capitalization, experiencing a remarkable surge of over 22% in its shares.

This achievement places IOB alongside notable peers such as State Bank of India (SBI), Bank of Baroda, Punjab National Bank, and Union Bank of India.

On February 2, IOB shares soared to a fresh 14-year peak of ₹55.6 per share, marking a 5% intraday gain and elevating its market valuation to ₹1.03 lakh crore, marking the fourth consecutive trading session of positive growth.

State Bank of India (SBI) leads the pack with a market value of approximately ₹5.8 lakh crore, followed closely by Bank of Baroda and Punjab National Bank, both standing at ₹1.33 lakh crore. Union Bank of India follows suit with ₹1.1 lakh crore.

IOB aims to boost its advances by 13-14% in the forthcoming quarters, as stated by AK Srivastava, the Managing Director, and CEO.

Srivastava emphasizes the bank's intention to maintain a credit-deposit ratio of 78%, aiming to open 70-80 branches in the next fiscal year to secure cost-effective deposits.

In Q3, IOB reported a significant 30.3% YoY increase in net profit to ₹723 crore and a 15.6% YoY rise in operating profit to  1,780 crore. The bank's net interest income (NII) also experienced robust growth, climbing 22% YoY to ₹ 6,176 crore in the October–December 2023 period. However, there was a slight dip in the net interest margin (NIM), dropping from 3.27% to 3.12% compared to the previous year.

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