IOB Share Price Target 2023, 2024, 2025, and 2030

IOB share price target 2023, 2024, 2025, and 2030: In this article, you will learn about IOB share price target 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.

For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned IOB share price target 2023, 2024, 2025, and 2030, along with the fundamentals of the company.

also read: GMR Infra share price target.

IOB Share Price Target 2023, 2024, 2025, and 2030

Table of Contents

Indian Overseas Bank (IOB) was founded on February 10, 1937, by Shri. M.Ct.M. Chidambaram Chettyar, a pioneer in many fields. The Bank was founded by him with the main objective of specializing in foreign exchange business in banking to take the Bank across the globe. IOB was one of the major banks that were nationalized in 1969.

Indian Overseas Bank is a pioneer in many fields – Banking, Insurance, and Industry with the twin objectives of specializing in foreign exchange business and overseas banking. At the dawn of independence, IOB had 38 branches in India and 7 branches abroad and deposits stood at Rs 6.64 crores and advances at Rs 3.23 crores at that time.

IOB was one of the 14 major banks that were nationalized in 1969. On the eve of Nationalization in 1969, IOB had 195 branches in India with aggregate deposits of Rs.67.70 Cr. and Advances of Rs.44.90 Cr. IOB was one of the 14 major banks that were nationalized in 1969. On the eve of Nationalization in 1969, IOB had 195 branches in India with aggregate deposits of Rs.67.70 Cr. and Advances of Rs.44.90 Cr.

Share Holding Pattern

Net NPA

Gross NPA

IOB Share Price Target 2023

The bank’s total domestic deposits stood at Rs 2,35,545 crores as of 31st march 2021 against Rs 2,18,028 crores as of 31st March 2020. The increase in deposits was mainly on account of steps taken by the bank towards improving the CASA. The domestic CASA has increased from Rs 88,671 crores as of 31st march 2020 to Rs 1,00,588 crores as of 31st March 2021. It is noteworthy to mention that the domestic savings bank deposits have grown by 13.65% over 31st march 2020 to end at Rs 85,661 crores. The domestic CASA% also improved to 42.70% as of March 2021.

With a view to diversifying the risk to improve the margins, the bank focused more on retail, agri, and MSME sectors during the fiscal year. The domestic gross advances stood at Rs 1,30,267 crores as of 31st March 2021 against Rs 1,27,336 crores as of 31 March 2020.

The bank has establishments abroad, including 4 overseas branches, 1 remittance center, and 1 joint venture subsidiary as of 31 March 2021. The bank has one branch each in Singapore, Hong Kong, Bangkok, and Colombo and one remittance center in Serangoon, Singapore. The overseas business stood at Rs 14,073 crores as of 31 March 2021 as compared to Rs 12,359 crores as of 31 March 2020. IOB has delivered a good profit growth of 28.70% over the past 3 years. By considering all the factors, IOB share price target for 2023 is Rs 35.

IOB share price target 2023

Rs 35

IOB Share Price Target 2024

We believe stressed MSME credit (particularly with shorter residual maturity) would have benefitted from the ECLGS scheme and the probable stress recognition has been postponed. In the process, the banking system would have postponed the probable gross NPA of ~200bps of total credit. Post this re-schedule meant of MSME credit (~15% of total MSME credit), banks are likely to observe the credit behavior in the segment vertical and refrain from committing more resources in the coming fiscal year.

Sustainable credit demand in MSME would only originate from healthy business activity in large corporates or strong growth in merchandise exports. As per professional forecasters’ data on RBI’s website, a low double-digit growth (10 11% YoY) in industrial & services is likely in FY22. This should induce some credit demand in MSME as well but banks would remain selective. Within the MSME vertical, credit demand was witnessed in medium-scale industrials but MSE (manufacturing & Services) and retail trades witnessed muted trends in their loan books.

In the retail segment, credit demand would depend on the unemployment rate, fresh addition to payrolls, retail indebtedness (reflected in a proxy indicator of household net liability), and the expected rise in employees’ remuneration. On the credit supply side, the banking system would remain cautious on unsecured retail credit.

Coincidently, in FY21 and FY20, unsecured credit was the key contributor to retail credit expansion. We believe banks will be more inclined to conserve capital by taking incremental exposures to secured retail credit. While the banking industry witnessed retail credit expansion in the housing, vehicle, Jewellery (gold) loans, and unsecured segments, it could unwind a part of jewelry (Gold) loans as credit demand picks up in other sub-segments. After a lot of research and analysis, IOB share price target for 2024 is Rs 43.

IOB share price target 2024

Rs 43

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IOB Share Price Target 2025

While considering the broader determinants in the entire gamut, we believe the likely reduction in CASA composition, rise in the delinquency rate, and credit demand leading to a decline in excess liquidity would guide the banking system’s margins. In the near term, the banking system’s margins should improve in the absence of interest income reversals. In 2HFY22, the rise in LDR and a reduction in excess liquidity would positively impact margins.

The expected softening of CASA composition in 2HFY22 & FY23 and rise in the delinquency rate would adversely impact margins. Exposures to high-yielding unsecured retail credit, micro-credit, and the ability to expand such credit portfolios in the volatile scenario would be the bank-specific margin determinants. The Indian economy recorded a negative growth rate of 24.4 percent and 7.3 percent in Q1 and Q2 of FY 2020-21 respectively due to lockdown imposed amidst the fear of the spread of the novel coronavirus in the country.

Lifting of lockdown brought the GDP back on track with a positive growth rate of 0.4 percent in Q3 FY 2020-21, which again fell into negative territory by 3.4 percent in Q4 2020-21 due to the re-imposition of lockdown in most of the states amidst the second wave of the spread of the virus. Overall India’s GDP remained in negative growth of 8.0 percent in FY 2020- 21 compared to 4.0 percent of the growth in GDP in FY 2019-20.

In terms of Gross Value Added (GVA), agriculture and allied activities registered a growth of 3.0 percent in FY 2020-21, with record production in food grains. This was the only sector that remained in the expansion zone in 2020-21, resulting in an increase in the share of agriculture in overall GVA. Bank credit growth to agriculture and allied activities improved to 12.3 percent compared to 4.2 percent growth in the previous year. IOB share price target for 2025 is Rs 56.

IOB share price target 2025

Rs 56

IOB Share Price Target 2030

During the year GOI & RBI continued to take expedient measures to revive growth & investment in this pandemic situation. The reduction in corporate tax cut from 30% to 22% has given big relief & boost to the industries.

The liquidity support and emergency credit support, especially to micro, small and medium units (MSMEs) was a vital step by RBI to deal with the CoVID-19 pandemic. The other continued measures like a moratorium on loan repayment targeted long-term operations, emergency credit line guarantee scheme, etc. Have safeguarded livelihoods and helped in the seamless resumption of business activity during this pandemic.

There was an improvement in business, but the second wave of COVID-19 has once again resulted in a slowdown of the business. There is an additional responsibility on the Banks to ensure a balance between business continuity and customer care. The digital transaction has become vital in the present pandemic scenario. For improvement in Digital Platform, the Bank has appointed Ernst & Young as a digital consultant as part of its growth strategy and to transform its banking services into a digitalized form. By considering all the factors and opportunities that the banking sector has, IOB share price target for 2030 is Rs 184.

IOB share price target 2030

Rs 184

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IOB Share Price Target 2023, 2024, 2025, and 2030

Year	IOB Share Price Target
IOB share price target 2023	Rs 35
IOB share price target 2024	Rs 43
IOB share price target 2025	Rs 56
IOB share price target 2030	Rs 184

Frequently Asked Questions

Is it good to buy Indian Overseas bank shares?

No, IOB is not strong in terms of financials and fundamentals. You can any other bank to invest your hard-earned money in some good bank which is strong in terms of financials and fundamentals. IOB has a high NPA, the average NPA for the last 3 years stands at 6.61%. IOB has delivered poor income growth of -1.8-% over the past 3 years.