Indian Overseas Bank jumped 4.75% to Rs 24.25 at 11:28 IST on BSE after the bank said its board approved to utilize the balance available in the share premium account to write off the accumulated losses of the bank.
The announcement was made after market hours yesterday, 4 January 2018.Meanwhile, the S&P BSE Sensex was up 141.94 points or 0.42% at 34,111.58. The S&P BSE Mid-Cap index advanced 0.6%, outperforming the Sensex.
On the BSE, 4.10 lakh shares were traded on the counter so far as against average daily volumes of 1.48 lakh shares in the past one quarter. The stock had hit a high of Rs 25.20 and a low of Rs 24 so far during the day. The stock had hit a 52-week high of Rs 32.25 on 5 May 2017 and a 52-week low of Rs 21.50 on 21 August 2017.
The stock had underperformed the market over the past one month till 4 January 2018, sliding 1.7% compared with the Sensex's 3.35% rise. The stock had also underperformed the market over the past one quarter, advancing 3.58% as against the Sensex's 7.26% rise. The scrip had underperformed the market over the past one year, sliding 4.54% as against the Sensex's 27.55% rise.
The mid-cap state-run bank has equity capital of Rs 2852.56 crore. Face value per share is Rs 10.
Indian Overseas Bank's (IOB) board at its meeting held yesterday, 4 January 2018, approved to utilize the balance available in the share premium account amounting to Rs 7650.06 crore as at 31 March 2017 to write off the accumulated losses of the bank aggregating to Rs 6978.94 crore as at 31 March 2017 to present a true and fair view of the financial position of the bank and to take the same into account during current financial year 2017-2018. An extraordinary general meeting (EGM) of shareholders of the bank is scheduled on 30 January 2018 for obtaining the approval of the shareholders for the aforesaid issue.
IOB reported net loss of Rs 1222.50 crore in Q2 September 2017, higher than net loss of Rs 765.13 crore in Q2 September 2016. Total income declined 5.9% to Rs 5610.35 crore in Q2 September 2017 over Q2 September 2016.
Also Read
The Government of India held 82.41% stake in Indian Overseas Bank as per the shareholding pattern as on 30 September 2017.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content