IOB zooms up almost 14%

Indian Overseas Bank (IOB) is doing very well on the bourses, currently the top gainer on the BSE. The stock, which had closed yesterday at Rs.55.05, opened today at Rs.57, going on to hit an intra day high at Rs.64.65 and the stock currently remains around the same levels, up almost 14%. Volumes have shot through the roof, up over 18 times.

This sudden spike up in IOB is on the back of its very good numbers for Q4 from the Bank. It posted a net profit of Rs.268 crore, up over 4.5 times (YoY). NII was at Rs.1411 crore, up 9%. This major jump in profitability during the quarter was on account of the Rs.324 crore provision write back on non performing assets.

The market was enthused with the improvement in the asset quality wherein Gross NPA got better from 5.27% to 4.98% (QoQ) while Net NPA too declined, albeit marginally, from 3.24% to 3.20%. CAR, which is a measure of the bank’s capital, expressed as a percentage of a bank's risk weighted credit exposures, for IOB in Q4 was at 10.78% (Basel III) v/s 10.99% (QoQ). Provisions for the quarter were at Rs.1204 crore v/s Rs.811 crore sequentially. The Bank has stated that it saw good recoveries , which in Q4 was at Rs.438 crore. It pegged fresh slippages at Rs.2275 crore.

The Bank ended FY14 with a 6% rise in net profit at Rs.602 crore on a total income of Rs.24,853 crore, up 10%. Total deposits during the year rose 135 while advances were up 10%.