Public sector lender Indian Overseas Bank share price was locked in 10 percent upper circuit on June 26 for second consecutive session following March quarter earnings.
The stock was trading at Rs 13.18, up 9.92 percent on the BSE at 11:35 hours IST. On June 25, it closed with 9.6 percent gains.
The good thing was that the stock has recovered all its losses seen during March lows, now rising 97 percent from March lows or trading at highest level of 2020.
The lender reported net profit at Rs 143.8 crore for the quarter ended March 2020 against loss of Rs 1,985.2 crore in same period last year, following sharp slide in provisions.
Provisions and contingencies plunged sharply to Rs 1,060.4 crore at the end of March 2020, down 84 percent compared to previous quarter and 76 percent compared to same period last year. Provision coverage ratio also improved a bit to 86.94 percent in Q4FY20 from 86.20 percent in Q3FY20.
Indian Overseas Bank (IOB) has restructured 19,043 MSME accounts and treated MSME accounts of Rs 694.2 crore as standard till March 31, 2020.
Asset quality also improved during the quarter with gross non-performing assets (NPA) as a percentage of gross advances falling 230 bps QoQ to 14.8 percent and net NPA declining 40 bps to 5.4 percent compared to previous quarter.
Bank's net interest income for the quarter stood at Rs 1,531.8 crore, rising 3.6 percent over Rs 1,479 crore in Q4FY19.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
