BSE:532388

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Indian Overseas Bank

Executive Summary

Indian Overseas Bank provides various banking products and services in India.


Snowflake Analysis

Adequate balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Indian Overseas Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532388's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

44.2%

532388

11.4%

IN Banks

6.4%

IN Market


1 Year Return

-11.9%

532388

-36.3%

IN Banks

-14.8%

IN Market

Return vs Industry: 532388 exceeded the Indian Banks industry which returned -38.2% over the past year.

Return vs Market: 532388 exceeded the Indian Market which returned -16.2% over the past year.


Shareholder returns

532388IndustryMarket
7 Day44.2%11.4%6.4%
30 Day41.1%9.0%9.5%
90 Day21.6%-21.4%-7.4%
1 Year-11.9%-11.9%-36.0%-36.3%-13.1%-14.8%
3 Year-58.8%-58.8%-35.4%-36.1%-3.7%-8.8%
5 Year-71.6%-71.6%-16.5%-19.0%23.7%12.1%

Price Volatility Vs. Market

How volatile is Indian Overseas Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

Best Growth Stock in June

1 year ago | Simply Wall St

Best Growth Stock in June

1 year ago | Simply Wall St

Best Growth Stock in June

Valuation

Is Indian Overseas Bank undervalued compared to its fair value and its price relative to the market?

0.69x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 532388's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 532388's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 532388 is unprofitable, so we can't compare its PE Ratio to the Banks industry average.

PE vs Market: 532388 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532388's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532388 is overvalued based on its PB Ratio (0.7x) compared to the IN Banks industry average (0.5x).


Next Steps

Future Growth

How is Indian Overseas Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.1%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Indian Overseas Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Indian Overseas Bank performed over the past 5 years?

-32.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532388 is currently unprofitable.

Growing Profit Margin: 532388 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 532388 is unprofitable, and losses have increased over the past 5 years at a rate of -32.2% per year.

Accelerating Growth: Unable to compare 532388's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 532388 is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (19.9%).


Return on Equity

High ROE: 532388 has a negative Return on Equity (-77.16%), as it is currently unprofitable.


Next Steps

Financial Health

How is Indian Overseas Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: 532388's Assets to Equity ratio (18.2x) is moderate.

Allowance for Bad Loans: Insufficient data to determine if 532388 has a sufficient allowance for bad loans.

Low Risk Liabilities: 94% of 532388's liabilities are made up of primarily low risk sources of funding.

Loan Level: 532388 has an appropriate level of Loans to Assets ratio (51%).

Low Risk Deposits: 532388's Loans to Deposits ratio (57%) is appropriate.

Level of Bad Loans: 532388 has a high level of bad loans (22.6%).


Next Steps

Dividend

What is Indian Overseas Bank's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 532388's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 532388's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 532388's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532388's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 532388 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532388's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

Karnam Sekar (59yo)

0.92

Tenure

Mr. Karnam Sekar has been Managing Director and Chief Executive Officer at Indian Overseas Bank since July 1, 2019. Mr. Sekar serves as an Whole-Time Director at Indian Overseas Bank since April 1, 2019. H ...


Leadership Team

NamePositionTenureCompensationOwnership
Ajay Srivastava
Executive Director2.67yrs₹2.58m0.00011% 186.8k
Karnam Sekar
MD, Director & CEO0.92yrno datano data
Bhuwan Chandra
CFO & GM0.50yrno datano data
S. Nandakumaran
Company Secretary0.75yrno datano data
M. Ramani
Principal of Staff Training College9.08yrsno datano data
Eapen Joseph
Chief Regional Manager of Kochi Operations9.08yrsno datano data
M. Venkatesan
Chief Managerno datano datano data
A. Chandramohan
Chief Managerno datano datano data
C. Sukumaran
Chief Managerno datano datano data
K. Rao
Chief Managerno datano datano data

0.9yrs

Average Tenure

58yo

Average Age

Experienced Management: 532388's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ajay Srivastava
Executive Director2.67yrs₹2.58m0.00011% 186.8k
Karnam Sekar
MD, Director & CEO0.92yrno datano data
Sanjay Rungta
Shareholder Director2.5yrsno datano data
Annie Mathew
Government Nominee Director3.92yrsno datano data
Navin Sinha
Shareholder Director2.5yrsno datano data
Deepak Kumar
Director0.75yrno datano data

2.5yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 532388's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 79.8%.


Top Shareholders

Company Information

Indian Overseas Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Indian Overseas Bank
  • Ticker: 532388
  • Exchange: BSE
  • Founded: 1937
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹169.794b
  • Shares outstanding: 16.44b
  • Website: https://www.iob.in

Number of Employees


Location

  • Indian Overseas Bank
  • 763 Anna Salai
  • Chennai
  • Tamil Nadu
  • 600002
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532388BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2000
IOBNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2000

Biography

Indian Overseas Bank provides various banking products and services in India. The company operates through Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations segments. Its personal banking products and services comprise saving bank and current accounts, term deposits, retail loans, home loans and mortgages, depository services, gold investment products, debit and credit cards, life and non-life insurance products, mutual funds, real time gross settlement services, pension payment and savings schemes, locker facility, and rupay cards. The company’s corporate banking services include term loans and working capital loans for micro, small, and medium enterprises; and finance for information technology (IT) and ITes BPO sectors. It also provides non-resident India accounts, as well as merchant, rural, Internet, and mobile banking services. The company operates through branches located in Hong Kong, Bangkok, Colombo, Singapore, and South Korea, as well as one representative office located in Dubai. Indian Overseas Bank was founded in 1937 and is based in Chennai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 12:53
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.