Shares of Indian Overseas Bank (IOB) rose by 2.70% to ₹54.49 on NSE as of 9:24 am today after ICRA upgraded the bank’s non-convertible securities rating to ‘AA’ and revised the outlook to positive. This marks a significant endorsement of the bank’s improved financial position and operational performance.
The positive developments come shortly after the public sector lender received a tax refund order of ₹1,238 crore from the Income Tax Department, relating to the 2019-20 financial year. This refund includes interest under Section 244-A of the Income Tax Act and follows a previous refund of ₹123.8 crore for FY 2021-22, issued in September.
In its Q2 results for the period ending September 30, 2024, Indian Overseas Bank reported a 24% increase in standalone net profit to ₹777 crore compared to ₹625 crore in the same period last year. Net interest income rose 8% to ₹2,538 crore, while asset quality improved with the gross NPA ratio falling to 2.72% from 2.89% in the prior quarter, and the net NPA ratio declining to 0.47% from 0.51%.
These developments collectively underscore IOB’s strengthening financial health and operational efficiency, contributing to positive market sentiment.
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