The Indian Overseas Bank (IOB) became the second largest public sector bank on Friday, with a market value of more than 50 billion rupees. Excluding the privatization of state-owned banks, Street’s shares in BSE have risen by more than 50% in the past month. Of course, the bank’s mcap has surpassed 50,000 mark, surpassing its competitors Punjab National Bank (PNB) and Bank of Baroda (BOB) in mcap ratings.
According to BSE data, at 3:04 pm, the highest capital of IOB was 51,887 crore rupees, and BSP (46,411 crore rupees) and BOB (44,112 crores rupees) were moved to third and fourth place respectively. Last month, the market price of IOB rose by 57%, while PNB fell by 4%, while BOB’s stock price rose by 5%. IOB shares reached 29 rupees on June 30, 2021, which is the highest level since May 2017. Previously, there were reports that IOB and the Central Bank of India may be privatized in the first phase of PSB privatization activities. According to media reports, the report stated that the two lenders may see a 51% sale in the first phase of the sale.
The privatization plan was announced in the federal budget for 2021-22 as part of the government’s broader sales target for FY22, which includes the privatization of several other public non-financial institutions and the listing of a wholly-owned Indian life insurance companies. In terms of finance, due to the increase in non-interest income, IOB’s net income became more than double in the January-March quarter (Q4 of FY21), reaching 3.5 billion rupees. The bank’s profit in the same period this year was 1.44 billion rupees.
However, compared to the previous quarter, it dropped by 8.4% to Rs 1,403 crore, while non-interest income increased by 93.5% to Rs 2016. Bank asset quality has improved. As of March 31, 2021, total non-performing assets (NPA) fell from 14.78% in the same period of the previous year to 11.69% of total loans. percentage.
The Bank announced that the Board of Directors has approved the 2021-22 investment plan. After this, the Bank will issue no more than 125 million additional shares in equity. The issue will or will not be according to the government or the participation of the lender of the Qualified Institutional Buyer (QIB).
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