Indian Overseas Bank fell 6.07% to Rs 109.10 at 13:13 IST on BSE, after net profit tumbled 50.97% to Rs 176.04 crore in Q2 September 2009 over Q2 September 2008.
Meanwhile, the BSE Sensex was down 184.42 points, or 1.13%, to 16,099.07.
On BSE, 3.89 lakh shares were traded in the counter as against an average daily volume of 4.07 lakh shares in the past one quarter.
The stock hit a high of Rs 115 and a low of Rs 107.60 so far during the day. The stock had hit a 52-week high of Rs 141 on 20 October 2009 and a 52-week low of Rs 37.55 on 9 March 2009.
The stock has fallen 18.25% in four trading sessions from a recent high of Rs 133.45 on 23 October 2009.
The mid-cap bank stock had underperformed the market over the past one month till 28 October 2009, falling 3.17% as compared to the Sensex's 2.45% fall. It had outperformed the market in the past one quarter, gaining 29.78% as compared to the Sensex's return of 6.21%.
The bank's equity capital is Rs 544.80 crore. Face value per share is Rs 10.
The current price of Rs 109.10 discounts the bank's Q1 June 2009 annualized EPS of Rs 22.16, by a PE multiple of 4.92.
Indian Overseas Bank (IOB)'s total income rose 10.56% to Rs 2922.34 crore in Q2 September 2009 over Q2 September 2008. The bank declared its results during trading hours today, 29 October 2008.
The slump in net profit of the bank was due to absorption of Rs 82.17 crore being one third of the deficit representing excess of liabilities over assets of Shree Suvarna Sahakari Bank, Pune.
IOB taken over some specific assets and liabilities of Shree Suvarna Sahakari Bank, Pune, which was under moratorium, with effect from the close of business on 19 May 2009. The Reserve Bank of India (RBI) has permitted IOB to absorb the deficit representing excess of liabilities over assets amounting to Rs 246.52 crore over a period of three years. The balance of deficit amount of Rs 164.35 crore will be absorbed before 31 March 2012, IOB said
IOB's gross non-performing assets (NPA) surged 55.63% to Rs 2684.77 crore in Q2 September 2009 over Q2 September 2008. The ratio of gross NPAs increased to 3.42% as on 30 September 2009 from 2.47% as on 30 September 2008. The net NPAs as of 30 September 2009 was at 1.59%, higher than 1.44% as of 30 September 2008.
IOB provides banking and other financial services to corporate and private customers. The group offers personal banking, cash management, retail loans and other financial services.
The Government of India holds 61.23% stake in the bank (as on 30 September 2009).