The market capitalization of Indian Overseas Bank has increased significantly. The market value of IOB has increased by 57 percent in the last one month. Its market cap reached Rs 51,887 crore on Friday.
Indian Overseas Bank
Indian Overseas Bank (IOB) on Friday became the second most valuable listed public sector bank with a market capitalization of over Rs 50,000 crore. It has outperformed its peers Punjab National Bank (PNB) and Bank of Baroda (BOB) in the m-cap ranking. As per data available on BSE, the market cap of IOB stood at Rs 51,887 crore yesterday afternoon, while that of PNB stood at Rs 46,411 crore and that of BoB at Rs 44,112 crore.
The market value of IOB has risen by 57 per cent in the last one month, while PNB has declined by 4 per cent and BOB share price has risen by 5 per cent. In comparison, the S&P BSE Sensex was up 1 per cent during the same period. As the state-owned lender street discounts privatization, its shares have surged over 50 per cent on the BSE in the past one month.
Acceleration due to privatization
IOB stock hit a four-year high of Rs 29 on June 30, 2021, the highest level since May 2017. IOB and Central Bank of India can be privatized in the first phase of PSB privatization drive. It is believed that due to this, it has accelerated. Financially, IOB’s net profit grew two-fold to Rs 350 crore in the January-March quarter (Q4FY21). The bank had made a profit of Rs 144 crore in the same period a year ago. However, net interest income declined by 8.4 per cent to Rs 1,403 crore, while non-interest income grew 93.5 per cent to Rs 2,016 crore as compared to the previous year quarter.
NPA is also fine
The asset quality of the bank has improved and increased. In this, gross non-performing assets (NPAs) have fallen to 11.69 per cent of gross advances as on March 31, 2021, from 14.78 per cent in the same period a year ago. Net NPAs have come down from 5.44 per cent to 3.58 per cent.
will issue equity shares
The bank said that as per the directions of the Board of Directors, the capital plan for 2021-22 has been approved, under which it will issue equity shares up to a maximum of 125 crore shares through a follow on public offer / rights issue. The issue can happen with or without the involvement of the government or Qualified Institutional Buyers (QIBs).
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