Indian Overseas Bank Jumps 3.57% to Rs 35.06 in Afternoon Trade on Results Day

Mumbai, July 20: Shares of Indian Overseas Bank rallied over 3 percent to Rs 35.06 in afternoon trade on Monday, after gapping higher on results day for the public sector lender. 

Indian Overseas Bank opened at Rs 34, above its previous closing price of Rs 33.85. The stock traded in a narrow range around Rs 34 through the morning session and majority of the early afternoon deals before breaking out sharply around 1 pm. Prices shot past Rs 35 within minutes and have managed to hold on to most of those gains ever since, with the counter currently trading at Rs 35.06 and more buys coming in as trade continues. 

In intraday trades, IOB hit a high of Rs 35.50 and a low of Rs 33.92. The volume-weighted average price of the stock so far is Rs 34.86, currently trading well above its VWAP indicates strong afternoon buying. 

Order book data till the last available update showed sell-side pressure continuing to dominate order flow with total sell quantity at 38,86,745 shares against total buy quantity of 13,38,685 shares or 74.4 percent of total volume on the ask side of the book. The best bid was at Rs 35.10 for 6,723 shares against a best ask of Rs 35.12 for 170 shares, indicating sellers still outnumber buyers by a significant margin though the stock has held most of its gains. 

Weekly Trend 

The stock had traded between Rs 33.70 and Rs 34.10 through all five sessions last week before today’s breakout pushes past Rs 35 levels for the first time in that period, reversing what had been a mildly negative rangebound trend for much of last week leading up to results. 

Net profit increases 49.3% to Rs 1,659 crore in Q1 FY27 

Indian Overseas Bank’s net profit surged 49.3 percent to Rs 1,659 crore in the June quarter of FY27 as sharply better asset quality combined with solid growth in core business income. State-owned lender Indian Overseas Bank reported a consolidated net profit of Rs 1,659 crore for the first quarter ending June 20,26 as against Rs 1,111 crore reported in the year-ago period. 

Total income grew 23 percent to Rs 10,938 crore from Rs 8,866.47 crore reported in the June quarter of FY26. This rise was led by healthy growth in both interest and non-interest income during the quarter, the bank said in its BSE filing. 

Gross non-performing assets (NPAs) declined 64 basis points year-on-year to 1.33 percent of gross advances in the June quarter of FY27 compared to 1.97 percent in the year-ago period. Similarly, net NPAs were down by 54 bps at 0.18 percent as against 0.32 percent in Q1 FY26. 

“The asset quality continues to improve as reflected in the decrease in gross NPAs and net NPAs. The bank’s gross NPA ratio at end of Q1 FY27 stood at 1.33 percent as against 1.97 percent at end of Q1 FY26 and net NPA ratio at 0.18 percent as against 0.32 percent at end of Q1 FY26,” the bank said in its filing. 

Provisions stood at Rs 834 crore compared to Rs 844 crore in the same period last year but better than Rs 1,006 crore in the March quarter, helped by lower credit costs and declining incremental slippages. 

• With inputs from PTI