Indian Overseas Bank Reports Record Net Profit, Stock Surges 11%

Shares of Indian Overseas Bank witnessed a significant surge of 10.50%, reaching a high of Rs 74.29 in the trading session today. Despite being down 11.35% from its peak of Rs 83.80 earlier this year, the bank’s stock showed strong upward momentum.

The Chennai-based Indian Overseas Bank announced its highest-ever net profit of Rs 808 crore for the fourth quarter and a commendable Rs 2,656 crore for the fiscal year ending March 31, 2024 (FY24). The bank’s operating profit for the year also saw a growth of 13.83%, coupled with a remarkable 26.54% surge in net profit.

During the fiscal year, Indian Overseas Bank demonstrated exceptional control over slippages, with only Rs 1,517 crore in slippages, constituting a mere 0.87% of performing advances as of March 31, 2023. The bank also recorded total recoveries of Rs 4,549 crore by the end of March 31, 2024, leading to a significant improvement in Gross NPA to 3.10% compared to 7.44% in the previous year.

Technical analysts are largely optimistic about Indian Overseas Bank’s stock. Support levels are identified around the Rs 68-67 range, with a potential upward target of Rs 85 in the short term. Analysts from Angel One, Religare Broking, and Anand Rathi Shares and Stock Brokers have provided their insights into the stock’s performance.

Today, the trading volume for Indian Overseas Bank surged, with approximately 11.68 crore shares exchanging hands on BSE. The turnover for the stock stood at Rs 83.84 crore, reflecting a market capitalization of Rs 1,39,858.95 crore.