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Indian Overseas Bank Stock Analysis

Mid Cap
Evaluated by 2459 users | BSE: 532388 | NSE: IOB |
Bank - Public
Indian Overseas Bank (IOB) was founded in February 1937 with twin objectives of specialising in foreign exchange business and overseas banking. It started out with three branches located at Karaikudi and Chennai in India and Rangoon in Burma (presently Myanmar).As of March 31, 2011, it...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Indian Overseas Bank has not performed well majority of the past ten years indicating its past ten year financial track record is not good
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Net Interest Income (Rs. Cr.)4,2085,0165,2525,5775,3845,3835,1905,4685,2795,303
Y-o-Y Gr. Rt.33-19.2%4.7%6.2%-3.5%-0%-3.6%5.4%-3.5%0.5%
Total Income13,32719,57022,65024,85326,07726,04623,09121,66221,83820,766
Y-o-Y Gr. Rt.-46.9%15.7%9.7%4.9%-0.1%-11.3%-6.2%0.8%-4.9%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
17.3313.186.144.87-3.68-16.03-13.92-12.88-4.09-5.19
Y-o-Y Gr. Rt.--24%-53.4%-20.7%-175.6%NANANANANA
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
118.25135.34133.21116.21112.873.3447.1722.8415.188.41
Y-o-Y Gr. Rt.-14.5%-1.6%-12.8%-2.9%-35%-35.7%-51.6%-33.5%-44.6%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1 : Not Good
Net Profit/Total Funds (%)0.690.530.240.23-0.16-1.03-1.31-2.54-1.5-3.34
To view Net NPA to Net Advances (%) Colour Rating Guide click here
Net NPA to Net Advances (%): Colour Rating Guide
  • < 0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1: Not Good
Net NPA to Net Advances (%)1.191.352.53.25.6811.8913.9915.3310.815.44
To view Capital Adequacy Ratio Colour Rating Guide click here
Capital Adequacy Ratio: Colour Rating Guide
  • > 12% : Very Good
  • 9%-12% : Somewhat Good
  • <9%: Not Good
Capital Adequacy Ratio - - - - - - - - - 0%
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Indian Overseas Bank should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Interest Income2.6%-0.3%0.7%0.5%
Total Income5.1%-4.5%-3.5%-4.9%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
-187.5%NANANA
Book Value per Share
-25.5%-40.5%-43.7%-44.6%
Share Price -21.1% -20% -22.8% 2%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Interest Earned / Total Income90.8191.4191.2991.2791.890.2985.3982.780.7483.82
Margins
To view Margins Colour Rating Guide click here
Margins: Colour Rating Guide
  • >2.75 : Very Good
  • 1.75-2.75 : Somewhat Good
  • <1.75 : Not Good
NIM (%)2.442.362.222.11.952.052.212.42.292.36
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15% : Very Good
  • 12%-15% : Somewhat Good
  • <12% : Not Good
Return on Equity (%)16.7311.64.914.51-3.21-21.31-27.52-55.38-29.85-61.57
Liquidity Ratio
To view Liquidity Ratio Colour Rating Guide click here
Liquidity Ratio: Colour Rating Guide
  • >35 : Very Good
  • 25-35 : Somewhat Good
  • <25 : Not Good
CASA (%) 30.226.4226.5125.3425.0928.7236.0936.7538.340.26
Entity Percentage Holding
Promoters 95.84%
Institutions 1.63%
Non-Institutions 2.53%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Indian Overseas Bank and arrived at the following conclusion:

Past 10 year's financial track record indicates that Indian Overseas Bank is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Indian Overseas Bank's performance infers:

Indian Overseas Bank earnings have grown by 0%, whereas share price has depreciated -20% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Indian Overseas Bank share prices over the last 10 years. Here is what we found out:

Indian Overseas Bank share price has depreciated -23.2% annually over the past ten years.

Indian Overseas Bank (IOB) was founded in February 1937 with twin objectives of specialising in foreign exchange business and overseas banking. It started out with three branches located at Karaikudi and Chennai in India and Rangoon in Burma (presently Read More

Indian Overseas Bank (IOB) was founded in February 1937 with twin objectives of specialising in foreign exchange business and overseas banking. It started out with three branches located at Karaikudi and Chennai in India and Rangoon in Burma (presently Myanmar).

As of March 31, 2011, it operated a network of approximately 2,184 branches in India, 2 in Hong Kong, and 1 each in Singapore, South Korea, Sri Lanka, and Bangkok. The company also operates 1,043 automated teller machines.

It was ranked no.1 among public sector banks by Business Today -PMG survey and Financial Express- Ernst & Young survey.

Businesses

Personal banking IOB provides a wide range of products and services such as saving bank accounts, current accounts, term deposit, retail loans, home loans and mortgages, depository services, gold investment products, debit and credit cards, multi city cheque facilities, insurance and mutual funds, and real time gross settlement services.

NRI banking It offers remittances, resident foreign currency accounts, NRI home loans and many other products for its NRI clients.

Corporate banking IOB such as term loans and working capital loans for micro, small, and medium enterprises; and loans for professional and self employed individuals, and information technology (IT) and ITes BPO sectors, as well as NRI accounts, and Internet and mobile banking services. In addition, it provides agricultural short term loans and agri business consultancy services; and forex collection services.

It also conducts government businesses like payment of direct taxes, indirect taxes, pension payment scheme, sales tax collections, provident fund scheme, etc

Milestones

In 1964, it introduced computerisation in the areas of inter-branch reconciliation and provident fund accounts.

It was the first bank to venture into consumer credit by introducing a personal loan scheme.

IOB was one of the 14 major banks that was nationalised in 1969.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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