InvestorQ : What is your view on Indian Overseas Bank now that it has become the second most valuable PSB in India after SBI?
Aashna Tripathi made post

What is your view on Indian Overseas Bank now that it has become the second most valuable PSB in India after SBI?

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Aditi Sharma answered.
5 months ago
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In an otherwise languid PSU banking space, IOB has been a star of sorts. It recently saw its market cap cross Rs.51,800 crore to become India’s second most valuable bank on market cap after SBI. Now IOB is more valuable than PNB with a market cap of Rs.46,400 crore and Bank of Baroda with a market cap of Rs.44,100 crore. Just in the last one month, the stock of Indian Overseas Bank shot up by 57% when PNB and BOB were almost flat.

The rally in IOB got accentuated after IOB and Central Bank were identified as privatization candidates in the next round. Both are likely to see 51% stake sale by the government. In a tough industry, IOB has done well in terms of financial performance. For the Mar-21 quarter, net profit was up nearly 150% at Rs.350 crore. While NII was 8% lower, that was made up by a 93% jump in non-interest income. Gross NPAs are lower at 11.69%.

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