Indian Overseas Bank (IOB) is in the limelight today morning, opening 17% higher at Rs.23.95 and briefly skimming the 20% UC at Rs.24.60. Its 52-week high is at Rs.29.
The stock price has reacted positively to the news that RBI has removed IOB from the Prompt Corrective Action (PCA) framework on improvement in financial and credit profile.
If one may recollect, IOB was placed under PCA in 2015 due to rising NPAs, negative RoA, culling its freedom to lend.
And now that it is out of the PCA, it has got more freedom to lend, especially to corporations.