Indian Overseas Bank share price surges over 7%; becomes fifth PSU bank to cross ₹1 lakh crore market cap

Estimated read time 9 min read

Indian Overseas Bank share price jumped nearly 8% on Friday, becoming the fifth public sector lender to cross 1 lakh crore market capitalisation. IOB shares surged as much as 7.92% to 56.22 apiece on the BSE, with its market valuation rising above 1.03 lakh crore.

The other PSU banks with m-cap above 1 lakh crore are State Bank of India (SBI), Punjab National Bank, Bank of Baroda and Union Bank of India.

SBI, the largest lender in the country, boasts a market capitalisation of more than 5.85 lakh crore. It is followed by Punjab National Bank (PNB) with m-cap of over 1.38 lakh crore, Bank of Baroda with market value of over 1.33 lakh crore and Union Bank of India valued at 1.10 lakh crore.

IOB shares have witnessed a stellar rally as the stock price has risen more than 24% in one month and over 102% in the past one year.

On January 24, the state-owned Indian Overseas Bank reported a 30% year-on-year (YoY)  rise in net profit at 723 crore for December quarter of FY24, led by improvement in core income and reduction in bad loans.

IOB’s net interest income (NII) in Q3FY24 increased to 6,176 crore from 5,056 crore in the corresponding quarter last year. The bank’s net interest margin (NIM), however, contracted to 3.12% from 3.27%, YoY.

Asset quality of the bank improved during the December quarter as gross non-performing asset (NPA) ratio declined to 3.90% from 4.75% in the September quarter. Net NPA ratio for the quarter also improved to 0.62% from 0.68%, QoQ.

Also Read: Stock market today: Nifty 50 jumps 2%, hits all-time high: 4 reasons why Indian stock market rose today

Meanwhile, on Friday, a sharp rally was seen in state-run lenders with the Nifty PSU Bank index rising over 2% led by gains in all the constituents.

The benchmark indices were also trading with strong gains with the Sensex surging over 1,000 points and the Nifty 50 index scaling above 22,000 level, hitting a record high, fuelled by positive global market cues.

At 1:10 pm, IOB shares were trading 3.95% higher at 54.15 apiece on the BSE.

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Published: 02 Feb 2024, 01:13 PM IST

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