I O B Shows Positive Performance in Q2 FY25, But Stock Call is 'Sell'

Indian Overseas Bank (I O B) has recently announced its financial results for the quarter ended September 2024. The bank, which falls under the largecap category in the public banking industry, has shown positive performance in this quarter. However, according to MarketsMOJO, the stock call for I O B is ‘Sell’.

In the last three months, the bank’s score has fallen from 14 to 8, indicating a decline in its overall performance. Despite this, there are some positive aspects to the financial results of I O B for the quarter. The bank has managed to maintain a low Gross NPA (non-performing assets) of 2.72%, which has been decreasing each quarter in the last five quarters. This shows that the proportion of stressed loans given by the bank is also decreasing.

Similarly, the Net NPA has also decreased each quarter in the last five quarters, with the lowest being 0.47%. The bank’s Profit After Tax (PAT) for the half-yearly period has grown by 25.34% year on year, with a positive trend in the near term. The Interest Earned for the quarter is also at its highest in the last five quarters, indicating a positive sales trend.

On the other hand, there are some areas where I O B needs to improve based on its financial results for the quarter. The Profit Before Tax (PBT) has fallen by -16.2% compared to the average PBT of the previous four quarters. The Non-Operating Income is also high, at 166.36% of the PBT, which may not be a sustainable business model for the bank. Additionally, the Credit Deposit Ratio for the half-yearly period is at its lowest in the last four periods, indicating that the bank is creating fewer revenue-generating assets.

Overall, the financial results of I O B for the quarter ended September 2024 show a mix of positive and negative aspects. Investors should carefully consider these factors before making any decisions regarding the stock.