 "Indian Overseas Bank hits 52-week low")
Shares of Indian Overseas Bank (IOB) were trading lower by 7% to Rs 43.35, also its 52-week low on the National Stock Exchange (NSE) in late noon trade.
Since March 3, 2015, the stock of state-owned lender has dipped 13% from Rs 50, after ratings agency Moody’s has downgraded ratings for IOB’s local and foreign currency deposits from “Baa3” to “Ba1” following the government’s policy to differentiate between public sectors banks (PSBs) when distributing capital.
“The new approach of the Government is reflected in the capital allocations earmarked for the fiscal years ending March 2015 and March 2016. IOB has the weakest standalone credit profile among Moody’s rated Indian banks, as indicated by their baseline credit assessment of b2,” IOB said in a statement dated March 4, 2015.
Meanwhile, Chennai-based IOB had incurred a net loss of Rs 516 crore in the October-December period as it made more provisions and contained loan disbursements. The public sector bank had also reported a net loss of Rs 246 crore in the previous (July-September) quarter.
Thus far in 2015, the stock underperformed the market by falling 30% compared with 5% rise each in the CNX Nifty and Bank Nifty.
Since March 3, 2015, the stock of state-owned lender has dipped 13% from Rs 50, after ratings agency Moody’s has downgraded ratings for IOB’s local and foreign currency deposits from “Baa3” to “Ba1” following the government’s policy to differentiate between public sectors banks (PSBs) when distributing capital.
“The new approach of the Government is reflected in the capital allocations earmarked for the fiscal years ending March 2015 and March 2016. IOB has the weakest standalone credit profile among Moody’s rated Indian banks, as indicated by their baseline credit assessment of b2,” IOB said in a statement dated March 4, 2015.
Meanwhile, Chennai-based IOB had incurred a net loss of Rs 516 crore in the October-December period as it made more provisions and contained loan disbursements. The public sector bank had also reported a net loss of Rs 246 crore in the previous (July-September) quarter.
Thus far in 2015, the stock underperformed the market by falling 30% compared with 5% rise each in the CNX Nifty and Bank Nifty.