Indian Overseas Bank shares: Shares of Indian Overseas Bank surged by 10.50 percent, reaching a high of Rs 74.29 in Friday’s trading session. However, despite this increase, the stock remained down by 11.35 percent from its 52-week high of Rs 83.80, which it achieved earlier this year on February 8.
In terms of earnings, the Chennai-based bank reported its highest-ever net profit, amounting to Rs 808 crore for the fourth quarter and Rs 2,656 crore for the fiscal year ending March 31, 2024 (FY24). Furthermore, the bank noted a significant growth in its operating profit for the year, which increased by 13.83 percent. Additionally, there was a remarkable surge of 26.54 percent in net profit.
Indian Overseas Bank (IOB) highlighted a significant achievement in the fiscal year, showcasing exceptional control over slippages. With slippages amounting to only Rs 1,517 crore, which accounted for a mere 0.87 per cent of performing advances as of March 31, 2023, the bank demonstrated robust management in this aspect. Furthermore, IOB recorded a total recovery of Rs 4,549 crore by March 31, 2024, marking a noteworthy improvement in Gross NPA, which declined by more than 50 per cent to 3.10 per cent compared to 7.44 per cent in the corresponding period last year.
Moreover, the bank’s net interest margin witnessed a strengthening to 3.28 per cent year-on-year, compared to 2.93 per cent reported as of March 31 the previous year.
Technical analysts maintained a largely positive stance on IOB’s performance. They identified support levels around the Rs 68-67 zone, indicating a favorable position. Additionally, an analyst suggested that the stock could potentially reach the Rs 85 level in the near term, further indicating optimism regarding its trajectory.
Osho Krishan, Senior Research Analyst specializing in Technical & Derivatives at Angel One, observed a robust consolidation breakout on IOB’s daily charts, accompanied by an uptick in average traded volumes, signaling underlying strength in the stock. Krishan suggested that IOB appears primed to target the Rs 78-80 zone in the short term, with the Rs 68-67 level now serving as a supportive base.
Ravi Singh, Senior Vice-President of Retail Research at Religare Broking, also expressed confidence in IOB’s bullish momentum on daily charts. Singh projected a potential upside target of Rs 85 in the near term, advising investors to maintain a stop loss at Rs 68 to mitigate risks.
Adding to the sentiment, Jigar S Patel, Senior Manager specializing in Technical Research at Anand Rathi Shares and Stock Brokers, anticipated a trading range for IOB between Rs 72 and Rs 80 over a month, indicating a favorable outlook for the stock’s performance in the short to medium term.
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IOB witnessed substantial trading activity today, with approximately 11.68 crore shares exchanged on the BSE. This volume significantly exceeded the two-week average volume of 12.21 lakh shares, indicating heightened investor interest. The turnover for the stock amounted to Rs 83.84 crore, contributing to a market capitalization (m-cap) of Rs 1,39,858.95 crore.
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