IOB capitalises on hike in stake by LIC

Indian Overseas Bank rose 1.53% to Rs 46.45 at 10:31 IST on BSE, after the biggest domestic instutional investors Life Insurance Corporation of India hiked its stake in the state-run bank.

The bank made this announcement after trading hours on Wednesday, 25 March 2009.

Meanwhile, the BSE Sensex was up 126.19 points, or 1.31%, to 9,794.09.

On BSE, 31,003 shares were traded in the counter. The stock had an average daily volume of 1.93 lakh shares in the past one quarter.

The stock hit a high of Rs 47 and a low of Rs 45.95 so far during the day. The stock hit a 52-week high of Rs 156.80 on 2 May 2008 and a 52-week low of Rs 37.55 on 9 March 2009.

The mid-cap bank stock had underperformed the market over the past one month till 25 March 2009, falling 3.17% as compared to the Sensex's 8.60% rise. It had also underperformed the market in the past one quarter, declining 33.94% as compared to the Sensex's 1.04% rise.

The bank's current equ

The current price of Rs 46.45 discounts the bank's Q3 December 2008 annualized EPS of Rs 28.52, by a PE multiple of 1.63.

Life Insurance Corporation (LIC) of India has hiked its stake in Indian Overseas Bank (IOB) to 10.01% from 9.95% after acquiring 2.91 lakh shares from open market on 19 March 2009.

Indian Overseas Bank's net profit rose 26% to Rs 388.44 crore on 39.6% increase in operating income to Rs 3204.90 crore in Q3 December 2008 over Q3 December 2007.

The bank provides banking and other financial services to corporate and private customers. The group offers personal banking, cash management, retail loans and other financial services.

The government of India holds 61.23% stake in the bank (as on 31 December 2008ity is Rs 544.80 crore. Face value per share is Rs 10.