Indian Overseas Bank (IOB) Share Price: Shares of Indian Overseas Bank (IOB), one of the leading public sector lenders, were in heavy demand in the morning deals on Monday, February 5. The stock zoomed as much as 17.5 per cent to hit a 52-week high of Rs 65.99 apiece on the BSE.
 
At 2.08 PM, the scrip was trading at Rs 65.25 each, up 16.21 per cent on the BSE. The bank's shares have risen over 41 per cent in the past three months and 113 per cent in the last six months. The stock eventually settled at Rs 62.63 each, up 11.54 per cent on the BSE.

A look at IOB's Q3 results

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Last month, the bank shared its quarterly results for the period that ended on December 31, 2023, through a stock market disclosure. IOB reported a 30 per cent increase in its net profit to Rs 723 crore for the December quarter of 2023–24, compared to Rs 555 crore logged in the same quarter a year ago. This was mainly due to core income improvement and a decline in bad loans.
 
The bank further reported its total income of Rs 7,437 crore during the quarter under review, up from Rs 6,006 crore in the same period last year. Its interest income increased to Rs 6,176 crore over Rs 5,056 crore recorded for the quarter ended December 2022.

READ MORE: IOB Q3 results: Profit jumps 30% to Rs 723 crore on improvement in core income 

What do analysts say?

A market analyst, who didn't want to be quoted, said that valuation-wise, the stock is exuberant, but the very important thing is promoter holding, which is very low. These stocks are running away; therefore, people have to be careful.

Ambareesh Baliga, an independent market analyst, on the other hand, said that the shares of IOB are skyrocketing, partially because of the bond portfolio, "where we see the appreciation but yields are coming down post-Budget."