IOB share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about IOB share price target 2022, 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 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
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IOB Share Price Target 2022, 2023, 2024, 2025, and 2030
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.
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IOB Share Price Target 2022
After continuously posting net losses during the last 6 years, IOB has now declared a yearly net profit of Rs 831 crores for FY 2020-21. The bank could reduce the gross NPA substantially from Rs.19913 Crores to Rs.16323 Crores and thereby brought down the GNPA% from 14.78% to 11.69% through multipronged and focused recovery initiatives.
NNPA has been brought down from Rs.6603 Crores to Rs.4578 Crores in absolute terms and from 5.44%to 3.58% in percentage terms. The NNPA% of the Bank as of 31.3.2021 is below the PCA threshold. PCR of the Bank has improved substantially as of 31.3.2021 from 86.94% to 90.34%. one of the highest in industry. As a result, IOB could register a net profit to the tune of Rs 350 crores for Q4 FY 2022-21 and Rs 831 crores for the whole FY 20-21.
Bank concentrated in the expansion of RAM segment advances especially housing loans and jewel loans which is evident in the growth of RAM share to domestic advances reaching 73.81% as of 31st March-2021. Rebalancing of Corporate portfolio has resulted in a reduction of overall advances. Overall interest income has recorded a marginal decline due to a reduction in the base rate, MCLR, and RLLR. Growth under low-cost deposits and shedding of high-cost deposits has kept the cost of deposits under control.
CASA has improved from Rs.89751 Crores as of 31st March-2020 to Rs.102165 Crores as of 31st March-2021 with a growth of 13.83%. CASA% has moved up from 40.26% as of 31st March -2020 to 42.52% as of 31st March-2021. A high-Cost Bulk deposit has been brought down from Rs.17092 Crores as of March-2020 to Rs.8055 Crores as of March 2021with a reduction of 52.87%. Net interest income has improved from Rs.5303 Crores in FY19- 20 to Rs.5899 Crores in FY-20-21.
Other Income has increased from Rs.3306 Crores in FY-19-20 to Rs.5559 Crores in FY- 20-21 due to improvement in Treasury income and recovery in a written-off account. The banking sector plays a major role in a growing economy like India, by considering the opportunities that Banks will have in the future to grow, IOB share price target for 2022 is Rs 27.
|IOB share price target 2022|
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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|
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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|
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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|
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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|
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IOB Share Price Target 2022, 2023, 2024, 2025, and 2030
|Year||IOB Share Price Target|
|IOB share price target 2022||Rs 27|
|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.
Does IOB give dividends?
No, from the past 8 years IOB was not given even a single dividend. The last time IOB gave the dividend was in the year 2014.
Will IOB be privatised?
As per the news sources and information till now, IOB will not be privatized and not on the list of banks that are going to be privatized.