Shares of Indian Overseas Bank jumped 10.50 per cent to hit a high of Rs 74.29 in Friday's trade. At this price, the stock was down 11.35 per cent from its 52-week high of Rs 83.80, a level seen earlier this year on February 8.
On the earnings front, the Chennai-based bank said it has reported a highest-ever net profit of Rs 808 crore for the fourth quarter and Rs 2,656 crore for the fiscal year ending March 31, 2024 (FY24). The lender also mentioned that its operating profit for the year grew by 13.83 per cent, accompanied by a remarkable 26.54 per cent increase in net profit.
"A key highlight of the fiscal year was the bank's exceptional control over slippages, with only Rs 1,517 crore slippages, accounting for 0.87 per cent of performing advance as on March 31, 2023. Total recovery recorded at Rs 4,549 crore as of March 31, 2024, improving Gross NPA by more than 50 per cent to 3.10 per cent as against 7.44 per cent in the corresponding period last year," IOB stated.
The bank's net interest margin strengthened to 3.28 per cent (YoY) compared to 2.93 per cent as on March 31 last year.
Technical analysts largely remained positive on the counter. Support could be seen at the Rs 68-67 zone. An analyst suggested that the counter may see Rs 85 level in the near term.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "IOB has seen a strong consolidation breakout on daily charts with an increase in average traded volumes, indicating inherent strength in the counter. The counter seems poised to test the Rs 78-80 zone in the short term. Rs 68-67 level should now provide a cushion to the counter."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock looked strong on daily charts. It has potential to hit an upside target of Rs 85 in the near term. Keep stop loss placed at Rs 68."
Jigar S Patel, Senior Manager - Technical Research at Anand Rathi Shares and Stock Brokers, said, "The expected trading range will be between Rs 72 and Rs 80 for a month."
The counter saw heavy trading volume today as around 11.68 crore shares were last seen changing hands on BSE. The figure was way more than the two-week average volume of 12.21 lakh shares. Turnover on the stock came at Rs 83.84 crore, commanding a market capitalisation (m-cap) of Rs 1,39,858.95 crore.