ScoreWhy is Indian Overseas Bank ?
1
Strong lending practices with low Gross NPA ratio of 1.33%
2
Strong Long Term Fundamental Strength with a 40.88% CAGR growth in Net Profits
3
Healthy long term growth as Net profit has grown by an annual rate of 40.88%
4
The company has declared Positive results for the last 26 consecutive quarters
- OPERATING CF(Y) Highest at Rs 5,501.50 Cr
- GROSS NPA(Q) Lowest at 1.33%
- NII(Q) Highest at Rs 3,687.62 cr
5
With ROA of 1.2, it has a Very Attractive valuation with a 1.7 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -5.15%, its profits have risen by 51% ; the PEG ratio of the company is 0.2
6
Majority shareholders : Promoters
7
Below par performance in long term as well as near term
- Along with generating -5.15% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to I O B should be less than 10%
- Overall Portfolio exposure to Public Sector Bank should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Public Sector Bank)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is I O B for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
I O B
-5.15%
-0.20
26.24%
Sensex
-2.63%
-0.19
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
11.13%
Net Profit Growth (5y)
40.88%
Advance to Deposit
72.89%
Capital Adequacy Ratio (Tier 1)
14.55%
Gross NPA (latest)
1.33%
Gross NPA (avg)
4.49%
Coverage Ratio (avg)
81.88%
Cost to Income (avg)
50.30%
Net Interest Margin (avg)
3.04%
Operating Profit to Assets (avg)
4.39%
ROA (avg)
0.84%
Net Debt to Equity (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Price to Book Value
1.69
PEG Ratio
0.23
Dividend Yield
NA
ROE (Latest)
14.60%
ROA (Latest)
1.20%
Net NPA to Book Value
1.49
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend30What is working for the Company
OPERATING CF(Y)
Highest at Rs 5,501.50 Cr
GROSS NPA(Q)
Lowest at 1.33%
NII(Q)
Highest at Rs 3,687.62 cr
INTEREST EARNED(Q)
Highest at Rs 8,777.57 cr
PAT(Q)
Highest at Rs 1,659.24 cr.
NET NPA(Q)
Lowest at 0.18%
CREDIT DEPOSIT RATIO(HY)
Highest at 84.64%
EPS(Q)
Highest at Rs 0.86
-9What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 12,015.04 cr
PBDIT(Q)
Lowest at Rs 532.87 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 6.07%
PBT LESS OI(Q)
Lowest at Rs -301.16 cr.
NON-OPERATING INCOME(Q)
is 116.20 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for I O B
Gross NPA - Quarterly
Lowest at 1.33% and Fallen
each quarter in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Gross NPA (%)
Net Interest Income (Quarterly)
Highest at Rs 3,687.62 cr and Grown
each quarter in the last five quartersMOJO Watch
The bank's income from core business is increasing
Net Interest Income (Rs Cr)
Operating Cash Flow - Annually
Highest at Rs 5,501.50 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Interest Earned - Quarterly
Highest at Rs 8,777.57 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Interest Earned (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 1,659.24 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net NPA - Quarterly
Lowest at 0.18% and Fallen
each quarter in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Net NPA (%)
Profit After Tax (PAT) - Quarterly
At Rs 1,659.24 cr has Grown at 27.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 1,302.01 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.86
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Credit Deposit Ratio - Half Yearly
Highest at 84.64%
in the last four periodsMOJO Watch
Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets
Credit Deposit Ratio (%)
Here's what is not working for I O B
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -301.16 cr has Fallen at -290.7% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 157.89 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 532.87 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 6.07%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -301.16 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 116.20 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 12,015.04 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Non Operating Income - Quarterly
Highest at Rs 2,160.23 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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