Indian Overseas Bank
IOB NSE
Indian Overseas Bank
Financial ServicesNSE: IOB BSE: 532388 Banks
Indian Overseas Bank was founded in 1937 by Chidambaram Chettyar. It was one of the 14 major banks that were nationalized in 1969. [1]
AI Verdict: HOLD Confidence: 4%
IOB has shown strong profit growth of 44.4% CAGR over 5 years and improving ROE at 15% last year, but the stock trades at P/B of 2.01x with no dividend payout, massive contingent liabilities of Rs.1,71,517 Cr, and a negative 1-year stock return of -7% suggesting the turnaround is already priced in.
Key Fundamentals
MidcapPublic Sector BankBanksMarket Cap
₹67,148 Cr
Volatility
Moderate
P/E Ratio
12.72
EBITDA
₹7,000 Cr
Return on Equity
9.67%
Debt to Equity
0
Book Value
₹17.43
EPS
₹1.49
52W High
₹41.8
52W Low
₹31.2
Technical Indicators
Key Insights
Strengths
1- Company has delivered good profit growth of 44.4% CAGR over last 5 years
Weaknesses
5- Though the company is reporting repeated profits, it is not paying out dividend
- Company has low interest coverage ratio.
- Company has a low return on equity of 12.2% over last 3 years.
- Contingent liabilities of Rs.1,71,517 Cr.
- Company might be capitalizing the interest cost
Growth Rate
Revenue Growth
11.83% ↗
Net Income Growth
59.58% ↗
Cash Flow Change
80.56% ↗
ROE
39.13% ↗
ROCE
-1.27% ↘
EBITDA Margin (Avg.)
5.97% ↘
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 1d agoHOLD
Risk high
IOB has shown strong profit growth of 44.4% CAGR over 5 years and improving ROE at 15% last year, but the stock trades at P/B of 2.01x with no dividend payout, massive contingent liabilities of Rs.1,71,517 Cr, and a negative 1-year stock return of -7% suggesting the turnaround is already priced in.
Bull Case 7
- Exceptional profit growth with 44.4% CAGR over last 5 years and 56% TTM profit growth indicating strong earnings momentum
- ROE improving from -3% over 10 years to 15% last year, signaling a successful turnaround from legacy NPA issues
- Revenue growth accelerating with 18% compounded sales CAGR over 3 years versus 13% over 5 years
- P/E ratio of 12.4x is reasonable for a PSU bank delivering 35% profit CAGR over 3 years
- 3-year stock CAGR of 14% demonstrates sustained re-rating by the market post-turnaround
- Market cap of Rs.66,724 Cr provides adequate liquidity and institutional participation potential
- TTM sales growth of 13% indicates continued business momentum in the current cycle
Bear Case 8
- Massive contingent liabilities of Rs.1,71,517 Cr which is approximately 2.6x the market cap of Rs.66,724 Cr, posing material risk
- Zero dividend yield despite repeated profitability suggests capital adequacy concerns or need for retained earnings to shore up balance sheet
- Low 3-year average ROE of only 12.2% compared to better-run private banks delivering 15-18% consistently
- Stock has delivered negative returns of -7% over the past 1 year indicating market skepticism at current valuations
- Low interest coverage ratio raises concerns about debt servicing ability and earnings quality
- 10-year ROE of -3% reflects deep structural issues and a history of large losses that eroded book value
- P/B ratio of 2.01x is elevated for a PSU bank with sub-par return ratios and no dividend
- Possible capitalization of interest costs raises red flags about true profitability and accounting quality
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 1d ago Positives 4
- Q4 profit surges 43% YoY Jun 02
IOB reported Q4 FY26 net profit of ₹1,505 crore, up 43.20% YoY, with GNPA ratio improving to 3.10% and recoveries of ₹4,549 crore during the fiscal year.
- IFSCA license for GIFT City Jun 02
IOB received perpetual IFSCA license on June 1, 2026 to operate an IFSC Banking Unit at GIFT City, enabling offshore banking, cross-border trade finance, and foreign currency lending.
- ₹5,000 Cr equity raise planned Jun 13
IOB plans to raise up to ₹5,000 crore in FY27 via QIPs, FPO, rights issues, and preferential allotments, subject to shareholder approval at the July 7 AGM.
- Non-callable FD rates hiked Jun 11
IOB raised non-callable FD rates by 10 bps effective June 11, with 1-year deposits now at 6.70% and 444-day deposits at 6.75%, which should support deposit mobilization.
Neutral 2
- Promoter holds 92.44% stake Jun 20
Government of India held 92.44% equity in IOB as of March 31, 2026, with no encumbrance during FY26. The Centre diluted 2.17% via OFS in December 2025 raising ~₹2,000 crore.
- AGM scheduled for July 7 Jun 11
IOB's 26th AGM is set for July 7, 2026, with key agenda items including the ₹5,000 crore capital raise approval and MD&CEO Srivastava's tenure extension until October 2027.
TL;DR: IOB is on a strong operational trajectory with a 43% Q4 profit surge, improving asset quality (GNPA at 3.10%), and strategic expansion into GIFT City offshore banking. The ₹5,000 crore capital raise will support growth but could dilute existing shareholders given the high 92.44% government holding. No material headwinds are visible in recent news flow, and the trend is clearly improving with the bank transitioning from a turnaround story to a growth narrative — watch for QIP pricing and GIFT City operations commencement as next catalysts.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 5,192 | 5,424 | 5,821 | 6,176 | 6,629 | 6,535 | 6,851 | 7,112 | 7,634 | 7,386 | 7,849 | 8,172 | 8,489 |
| Expenses | 2,820 | 2,618 | 2,827 | 2,581 | 4,047 | 2,736 | 3,189 | 2,849 | 3,150 | 2,713 | 2,697 | 3,430 | 3,102 |
| Financing Profit | -544 | -296 | -481 | -183 | -1,284 | -295 | -652 | -60 | -27 | 33 | 362 | -132 | 368 |
| Fin. Margin % | -10% | -5% | -8% | -3% | -19% | -5% | -10% | -1% | 0% | 0% | 5% | -2% | 4% |
| Other Income | 1,430 | 803 | 1,114 | 1,262 | 2,477 | 1,033 | 1,633 | 1,298 | 1,581 | 1,481 | 1,365 | 1,499 | 1,291 |
| Interest | 2,916 | 3,102 | 3,475 | 3,778 | 3,866 | 4,094 | 4,313 | 4,323 | 4,511 | 4,639 | 4,790 | 4,874 | 5,019 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| PBT | 886 | 507 | 633 | 1,079 | 1,193 | 738 | 982 | 1,237 | 1,554 | 1,514 | 1,728 | 1,367 | 1,659 |
| Tax % | 27% | 1% | 1% | 33% | 32% | 14% | 21% | 29% | 32% | 27% | 29% | 0% | 9% |
| Net Profit | 650 | 500 | 625 | 723 | 808 | 633 | 777 | 874 | 1,051 | 1,111 | 1,226 | 1,365 | 1,505 |
| EPS in Rs | 0.34 | 0.26 | 0.33 | 0.38 | 0.43 | 0.33 | 0.41 | 0.46 | 0.55 | 0.58 | 0.64 | 0.71 | 0.78 |
| Gross NPA % | 7.44% | 7.13% | 4.74% | 3.9% | 3.1% | 2.89% | 2.72% | 2.55% | 2.14% | 1.97% | 1.83% | 1.54% | 1.42% |
| Net NPA % | 1.83% | 1.44% | 0.68% | 0.62% | 0.57% | 0.51% | 0.47% | 0.42% | 0.37% | 0.32% | 0.28% | 0.24% | 0.21% |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 23,938 | 23,517 | 19,719 | 17,915 | 17,631 | 17,406 | 16,966 | 16,730 | 19,400 | 24,050 | 28,131 | 31,896 |
| Expenses | 7,262 | 11,443 | 11,728 | 17,573 | 15,142 | 16,706 | 10,360 | 9,263 | 9,756 | 11,737 | 11,529 | 11,421 |
| Financing Profit | -1,878 | -6,060 | -6,539 | -12,106 | -9,863 | -11,404 | -4,461 | -2,952 | -1,501 | -1,908 | -639 | 1,153 |
| Fin. Margin % | -8% | -26% | -33% | -68% | -56% | -66% | -26% | -18% | -8% | -8% | -2% | 4% |
| Other Income | 2,139 | 2,528 | 3,373 | 3,746 | 4,206 | 3,360 | 5,559 | 4,903 | 4,109 | 5,656 | 5,545 | 5,636 |
| Interest | 18,554 | 18,135 | 14,529 | 12,448 | 12,352 | 12,103 | 11,067 | 10,419 | 11,145 | 14,220 | 17,241 | 19,322 |
| Depreciation | 149 | 196 | 215 | 272 | 304 | 301 | 258 | 172 | 260 | 336 | 394 | 521 |
| PBT | 111 | -3,728 | -3,381 | -8,632 | -5,961 | -8,344 | 840 | 1,779 | 2,348 | 3,413 | 4,512 | 6,268 |
| Tax % | 508% | -22% | 1% | -27% | -37% | 2% | 1% | 4% | 11% | 22% | 26% | 17% |
| Net Profit | -454 | -2,897 | -3,417 | -6,299 | -3,738 | -8,527 | 831 | 1,710 | 2,099 | 2,656 | 3,335 | 5,208 |
| EPS in Rs | -3.68 | -16.03 | -13.92 | -12.88 | -4.09 | -5.19 | 0.51 | 0.9 | 1.11 | 1.4 | 1.73 | 2.7 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 1,235 | 1,807 | 2,455 | 4,891 | 9,142 | 16,437 | 16,437 | 18,902 | 18,902 | 18,902 | 19,257 | 19,257 |
| Reserves | 14,406 | 13,859 | 11,290 | 8,383 | 7,218 | -282 | 508 | 4,098 | 6,361 | 9,040 | 13,284 | 18,259 |
| Borrowing | 10,830 | 27,183 | 16,098 | 9,228 | 6,146 | 5,420 | 3,672 | 3,071 | 20,804 | 30,387 | 42,228 | 51,603 |
| Deposits | 2,53,451 | 2,24,514 | 2,11,343 | 2,16,832 | 2,22,534 | 2,22,952 | 2,40,288 | 2,62,159 | 2,60,883 | 2,85,905 | 3,11,204 | 3,68,191 |
| Other Liabilities | 5,715 | 7,073 | 5,983 | 8,634 | 4,968 | 16,200 | 13,106 | 11,147 | 6,784 | 7,799 | 9,044 | 16,011 |
| Total Liabilities | 2,85,637 | 2,74,437 | 2,47,167 | 2,47,968 | 2,50,008 | 2,60,727 | 2,74,010 | 2,99,377 | 3,13,734 | 3,52,034 | 3,95,017 | 4,73,320 |
| Fixed Assets | 2,462 | 3,218 | 3,002 | 2,838 | 3,321 | 3,124 | 2,918 | 3,365 | 3,710 | 3,725 | 4,581 | 5,007 |
| CWIP | 45 | 52 | 53 | 56 | 16 | 3 | 1 | 0 | 0 | 14 | 74 | 67 |
| Investments | 79,298 | 79,190 | 71,654 | 68,646 | 66,932 | 79,416 | 95,494 | 98,179 | 94,170 | 99,632 | 1,11,045 | 1,19,810 |
| Other Assets | 2,03,832 | 1,91,977 | 1,72,459 | 1,76,429 | 1,79,739 | 1,78,183 | 1,75,597 | 1,97,833 | 2,15,854 | 2,48,662 | 2,79,317 | 3,48,436 |
| Total Assets | 2,85,637 | 2,74,437 | 2,47,167 | 2,47,968 | 2,50,008 | 2,60,727 | 2,74,010 | 2,99,377 | 3,13,734 | 3,52,034 | 3,95,017 | 4,73,320 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 5,941 | -3,091 | -505 | -1,999 | -786 | -14,023 | 4,949 | 5,566 | -15,595 | -1,165 | 2,771 | 5,502 |
| Investing | -164 | -254 | -135 | -110 | -647 | -85 | -46 | -48 | -559 | -359 | -565 | -639 |
| Financing | 113 | 692 | 1,617 | 5,430 | 5,780 | 7,277 | 1,813 | 479 | -12 | -528 | 310 | -710 |
| Net Cash Flow | 5,890 | -2,652 | 977 | 3,322 | 4,347 | -6,831 | 6,716 | 5,997 | -16,166 | -2,052 | 2,516 | 4,152 |
| Free Cash Flow | 5,783 | -3,345 | -640 | -2,108 | -1,433 | -14,108 | 4,903 | 5,518 | -16,155 | -1,525 | 2,205 | 4,863 |
| CFO/OP | 36 | -23 | -1 | -182 | 5 | -1,933 | 77 | 85 | -158 | -5 | 5 | 30 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | -3% | -19% | -23% | -47% | -26% | -52% | 5% | 9% | 9% | 10% | 11% | 15% |
Documents
1
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome
8 May - Indian Overseas Bank uploaded audio recording of 8 May 2026 analyst meet on Q4 FY26 results. 8 May - Indian Overseas Bank uploaded audio recording of 8 May 2026 analyst meet on Q4 FY26 results.
2
Announcement under Regulation 30 (LODR)-Newspaper Publication
30 Apr - Newspaper publication of Financial Results as on 31.03.2026 30 Apr - Newspaper publication of Financial Results as on 31.03.2026
3
Announcement under Regulation 30 (LODR)-Change in Management
30 Apr - GM Dillip Kumar Barik superannuated on 30.04.2026; Venkata Dayalprasad Goli takes HR role from 01.05.2026. 30 Apr - GM Dillip Kumar Barik superannuated on 30.04.2026; Venkata Dayalprasad Goli takes HR role from 01.05.2026.
4
Announcement under Regulation 30 (LODR)-Press Release / Media Release
29 Apr - IOB Q4FY26 net profit rose 43.2% to ₹1,505 crore; FY26 profit reached ₹5,208 crore. 29 Apr - IOB Q4FY26 net profit rose 43.2% to ₹1,505 crore; FY26 profit reached ₹5,208 crore.
Frequently Asked Questions about Indian Overseas Bank
What does Indian Overseas Bank do?
Indian Overseas Bank was founded in 1937 by Chidambaram Chettyar. It was one of the 14 major banks that were nationalized in 1969. [1]
Where is Indian Overseas Bank (IOB) listed?
Indian Overseas Bank is listed on the Indian stock exchanges. It is listed on NSE: IOB and BSE: 532388. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Indian Overseas Bank belong to?
Indian Overseas Bank operates in the Financial Services sector within the Banks industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Indian Overseas Bank?
Indian Overseas Bank has a market capitalisation of approximately ₹67147.73 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Indian Overseas Bank?
The Price-to-Earnings (PE) ratio of Indian Overseas Bank is 12.72. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Indian Overseas Bank?
Over the past 52 weeks, Indian Overseas Bank has traded between a low of ₹31.2 and a high of ₹41.8. This range helps investors understand the stock's price volatility and recent trading levels.
What is the Return on Equity (ROE) of Indian Overseas Bank?
Indian Overseas Bank has a Return on Equity (ROE) of 9.67%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Indian Overseas Bank on Tapetide?
On Tapetide, you can view Indian Overseas Bank's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.
Company Information
Indian Overseas Bank was founded in 1937 by Chidambaram Chettyar. It was one of the 14 major banks that were nationalized in 1969. [1]
Website iob.in
CEO Mr. Ajay Kumar Srivastava
Employees 20,966
Listed 2000-12-07
Face Value ₹ 10
Issued Size 19,25,65,89,795