IOB rises on inking MoU with Mahindra and Mahindra

Indian Overseas Bank | Bank - Public | BFSI | BSE: 532388 | NSE: IOB

26 Dec 2011 Evaluate

Indian Overseas Bank (IOB) is currently trading at Rs. 79.85, up by 1.40 points or 1.78% from its previous closing of Rs. 78.45 on the BSE.

The scrip opened at Rs. 78.00 and has touched a high and low of Rs. 80.85 and Rs. 78.00 respectively. So far 17,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 164.20 on 02-May-2011 and a 52 week low of Rs. 76.65 on 22-Dec-2011.

Last one week high and low of the scrip stood at Rs. 85.10 and Rs. 76.65 respectively. The current market cap of the company is Rs. 4,940.00 crore.

The promoters holding in the company stood at 65.87% while Institutions and Non-Institutions held 18.24% and 15.89% respectively.

Mahindra and Mahindra (M&M) has inked a Memorandum of Understanding (MoU) with Indian Overseas Bank (IOB) for providing financing for a range of its vehicles.

With the help of this MoU, IOB is entering into commercial vehicle financing market. In addition, IOB offers 12.5% interest for financing of commercial vehicles.

M&M has sold 30% of commercial vehicles through finance in the last quarter of calendar year. M&M is growing at 20% (yea-on-year) in the passenger vehicle segment while, commercial segment witnessed a 35 to 40% growth.