Indian Overseas Bank

Indian Overseas Bank
Banks
FV – Rs 10; 52wks H/L –32.65/21.1; TTQ – 4.97 Lacs; CMP – Rs 25.1 (As On December 15th 2016);                               

   Market Cap – Rs 6161 Crs

Standalone Financials and Valuations for FY16 (Amt in Rs Crs unless specified)


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
1807.26 15666 27183 26046 -3387.17 87 -18.7 – 14.86 0.29 77.32

1.5

 

Standalone Financials and Valuations (Amt in Rs Crs unless specified)

 
Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry P/E
P/BV
Promoter’s
Stake		 Provision Coverage Ratio
Q2 FY17 2454.73 13076 22530 5962 -765.13 53 -3.12 – 14.86 0.47 79.56 50.19
Q1 FY17 1899.01 12520 22530 5868 -1450.5 66 -7.64 – 14.86 0.38 73.58

47.61
  • Promoter holding has increased to 79.56% from 73.58%

Valuation Parameters:

  1. Long Term Debt to Equity – 1.74
  2. ROE % – NIL
  3. Market Cap/Sales – 0.24

Capital Adequacy Ratio for FY16 is 9.6% and Provision Coverage Ratio is at 47.39%.

 

  • The Bank issued 485617597 equity shares of Rs.10 each for cash at issue price of Rs.41.37 per equity share (including premium of Rs.31.37 per equity share) aggregating upto Rs.2009 crore to Government of India on Preferential Basis and 8699771 equity shares of Rs.10 each for cash at issue price of Rs.23.45 per equity share (including premium of Rs.13.45 per equity share) aggregating upto Rs.202.37 crore to Life Insurance Corporation of India on Preferential Basis. Hence, the paidup capital of the Bank has increased from Rs.1235.35 crore to Rs.1807.27 crore. Government of India’s shareholding has increased from Rs.911.71 crore (73.80%) to Rs.1397.33 crore (77.32%) and the Public shareholding stood at Rs.409.94 crore (22.68%). Further the Bank has allotted more 555714797 equity shares of Rs. 10 each at a premium of Rs.17.91 per share to Government of India on preferential basis which brings the holding to 79.56%

 

Overview:

  • Indian Overseas Bank (the Bank) is engaged in the business of banking.
  • The Bank’s segments include Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations. Its operations consist of domestic deposits; domestic advances; foreign exchange operations; investments; micro, small and medium enterprises, including MUDRA Loan Scheme; retail banking, including Arogya Mahila Savings Bank Accounts; Mid Corporate department; agricultural credit portfolio; loans to small and marginal farmers; loans to non-corporate farmers, and microfinance.
  • Its personal banking services include saving bank, current account, term deposit, retail loans, and mortgages and depository services.
  • It offers merchant banking for issues, debenture trustee, dividend/interest warrant and others. It also offers Internet and mobile banking services.
  • It has over 3,400 branches in India. It has over eight overseas branches with operations in Hong Kong, Bangkok, Sri Lanka, Singapore and South Korea.

 

Capital Adequacy Ratio

  Basel III
CET 1 7.64%
Tier I 8.27%
Tier II 1.88%
Total 10.15%

 

Management:

  • Mr. R. Subramaniakumar – MD & CEO

The Equity Capital is @ Rs 2454.73 Crs consisting of 2454728928 equity Shares of FV Rs 10 currently held as under

None Of the Promoter’s Holding is pledged.

Particulars (Rs.Crs) Q2 FY17 Q1 FY17
Deposists 208058 218484
Advances 159522 165556
Operating Profit 1064 690.55
Net Profit -765.14 -1450.5
Gross NPA 34724 33913
Net NPA 20765 21321
Ratios (%)    
Provision Coverage Ratio 50.19 47.61
Net Interest Margin 2.02 1.87
Credit Deposit Ratio 76.67 75.77
CASA Ratio 30.93 30.17
Cost to Income Ratio 63.62 52.82

 

 

In 2008 the high price was Rs.228.9 and in 2016 it made a low of Rs.21.1.

Year Open (Rs.) High (Rs.) Low (Rs.) Close (Rs.)
2006 94 132.7 65.55 110.7
2007 111.25 199 88.6 178.7
2008 179.5 228.9 60.3 71.75
2009 72.2 141 37.55 110.55
2010 114 176.35 84.8 146.4
2011 147.3 164.2 73.3 73.55
2012 74.2 119 66.2 85.65
2013 86.2 94.85 37.15 51.45
2014 51.55 89.9 42.15 62.2
2015 62 64.75 29.55 30.65
2016 31 32.65 21.1 25.05

 

Consolidated Financial Trends (In Rs. Crs) :

Particulars FY16 FY15 FY14 FY13 FY12 FY11
Equity Paid Up 1807.27 1235.35 1235.35 924.1 796.1 618.75
Networth 15666 15641 16170 13457 11927 9325
Total Debt 27183 18232 24456 23323 23614 19355
Net Sales 26046 26077 24853 22650 19578 13327
Other Income 2528 2139 2169 1973 1681 1225
PAT -3387.17 -454.33 601.74 567.23 1050.13 1072.54
Book Value (Rs) 87 127 131 146 150 151
EPS (Rs) -18.7 -3.7 4.9 6.1 13.2 19.8