Indian Overseas Bank (IOB)
₹30.99 +0.81% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Indian Overseas' net interest income was ₹3,688 Cr (+34.2% year on year, +6.3% on the previous quarter), and net profit ₹1,716 Cr (+45.6% year on year).
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Net interest income | ₹3,688 | +34.2% | +6.3% |
| Operating profit | ₹2,693 | +14.2% | — |
| Net profit | ₹1,716 | +45.6% | +10.3% |
| EPS (₹) | 0.89 | +45.9% | +9.9% |
| Gross NPA | 1.33% | — | — |
IOB delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 52.11% of the IOB shares traded on NSE were taken to delivery, against the stock's own 20-session average of 48.33%. That is close to its usual level.
Delivery in the last 5 sessions: 52.0% · 53.2% · 37.9% · 31.3% · 52.1%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Indian Overseas Bank (IOB) has announced a revision in its Marginal Cost of Funds based Lending Rate (MCLR) effective October 15, 2026. The bank hiked rates by 5 basis points across most tenors, taking the benchmark one-year MCLR from 8.85% to 8.90%. The one-month MCLR remains unchanged at 8.25%, while overnight, three-month, six-month, two-year, and three-year rates increased by 5 bps. This routine repricing supports lending yields amid an evolving interest rate environment.
- One-Year MCLR increased by 5 bps from 8.85% to 8.90%
- Overnight MCLR raised by 5 bps from 7.90% to 7.95%
- Three-Month and Six-Month MCLR adjusted upward by 5 bps to 8.50% and 8.75% respectively
- One-Month MCLR kept unchanged at 8.25%
- New lending rates effective from October 15, 2026
Indian Overseas Bank has announced an upward revision in its External Benchmark Lending Rate (EBLR). Specifically, the Repo Linked Lending Rate (RLLR) has been increased by 25 basis points from 8.10% to 8.35% per annum. The revised rate comes into effect from October 8, 2026. This adjustment directly affects floating-rate loans tied to external benchmarks across retail and MSME segments.
- Repo Linked Lending Rate (RLLR) revised upwards from 8.10% to 8.35%
- Rate hike quantum is 25 basis points (0.25%)
- Revised rates become effective from October 8, 2026
- Applies until further review by the bank
India Ratings & Research has upgraded Indian Overseas Bank's (IOB) Long-Term Issuer Rating and Basel III Tier 2 Bonds (Rs 1,165 crore) from 'IND AA' to 'IND AA+' with a Stable outlook. The rating agency highlighted consistent asset quality improvement, with gross NPA dropping to 1.33% and net NPA to 0.18% in 1QFY27. Capital adequacy remains robust at 19.36% (CET1 at 16.88%), alongside sustained profitability marked by an ROA of 1.41%. The bank is also contemplating an equity raise of up to Rs 5,000 crore and Tier 2 bonds of Rs 1,000 crore in 2HFY27.
- Issuer Rating and Basel III Tier 2 Bonds upgraded to 'IND AA+/Stable' from 'IND AA/Positive'
- Gross NPA declined to 1.33% and Net NPA dropped to 0.18% in 1QFY27, with PCR improving to 86.3%
- Overall Capital Adequacy Ratio (CAR) stood at 19.36% with CET1 and Tier 1 at 16.88%
- Annualized ROA reached 1.41% in 1QFY27, supported by 34.3% YoY growth in Net Interest Income
- Management plans to raise up to Rs 5,000 crore (INR 50 billion) via equity during 3Q/4Q FY27
Indian Overseas Bank submitted its half-yearly statement of outstanding debt securities as of September 30, 2026, pursuant to SEBI regulations. The bank has four outstanding debt tranches totaling Rs 3,165 crore in issued and outstanding amount. The instruments carry coupon rates ranging between 7.80% and 9.0802%, with maturities stretching from 2029 to 2036. This is a routine regulatory compliance filing with no impact on business operations.
- Total outstanding debt securities across 4 tranches stand at Rs 3,165 crore as of September 30, 2026
- Latest bond issuance of Rs 1,000 crore on January 23, 2026 matures on January 23, 2036 at a 7.80% coupon
- Oldest outstanding tranche is Rs 500 crore issued on September 24, 2019 maturing September 24, 2029 at 9.0802%
- Three tranches carry 5-year call options subject to prior RBI approval
Indian Overseas Bank (IOB) has announced a 5 basis point (bps) increase in its Marginal Cost of Funds based Lending Rate (MCLR) for tenors of three months and above. The benchmark one-year MCLR, which influences many retail and corporate loans, will rise from 8.80% to 8.85%. Short-term rates for overnight and one-month tenors remain unchanged at 7.90% and 8.25% respectively. This routine adjustment is effective from August 15, 2026, and aims to manage the bank's interest spreads.
- 5 bps increase applied to 3-month, 6-month, 1-year, 2-year, and 3-year tenors
- Benchmark one-year MCLR revised upwards to 8.85% from 8.80%
- Overnight and One-month MCLR maintained at 7.90% and 8.25% respectively
- New rates become effective starting August 15, 2026
- Three-year MCLR reaches 8.90% following the 5 bps hike
CARE Ratings has upgraded Indian Overseas Bank's (IOB) Tier-II Bonds (₹2,665 Cr) to 'CARE AA+; Stable' from 'CARE AA; Stable'. The upgrade is driven by a significant improvement in asset quality, with Gross NPA falling to 1.33% and Net NPA to 0.18% as of June 2026. Profitability showed strong momentum, with Q1FY27 PAT rising 49% YoY to ₹1,659 Cr. The bank maintains a robust capital position with a Capital Adequacy Ratio (CAR) of 19.36% as of June 30, 2026.
- Tier-II Bonds worth ₹2,665 crore upgraded to CARE AA+ (Stable) from CARE AA.
- Gross NPA improved to 1.33% as of June 2026, down from 2.14% in March 2025.
- Net Profit for Q1FY27 increased to ₹1,659 crore from ₹1,111 crore in Q1FY26.
- Capital Adequacy Ratio (CAR) stood at 19.36% as of June 2026, well above regulatory requirements.
- Credit-to-Deposit (CD) ratio improved to 83.28% as of March 31, 2026, from 78.72% in the previous year.
Indian Overseas Bank (IOB) reported an all-time high quarterly net profit of ₹1,659 crore for Q1 FY27, marking a 49.32% YoY growth. Asset quality showed significant improvement with Gross NPA falling to 1.33% (from 1.97% YoY) and Net NPA reaching a low of 0.18%. The bank has approved a ₹5,000 crore equity fundraise, likely via QIP or public offering in Q3/Q4 FY27, to bolster capital and address the 92.44% promoter holding. Management guided for a 13-14% growth in both assets and liabilities for the full year.
- Net profit increased 49.32% YoY to a record ₹1,659 crore in Q1 FY27.
- Gross NPA ratio improved significantly to 1.33% from 1.97% in the previous year.
- Total advances grew by 22.75% YoY to reach ₹3,22,132 crore.
- Capital Adequacy Ratio (CAR) stands strong at 19.36% against a regulatory requirement of 11.50%.
- Board approved raising ₹5,000 crore through equity and ₹1,000 crore via Tier 2 bonds.
Indian Overseas Bank (IOB) has submitted its Reconciliation of Share Capital Audit for the quarter ended June 30, 2026. The report confirms that the bank's total issued and listed capital remains unchanged at 1,925.66 crore shares. A significant 99.88% of the shareholding is now in dematerialized form, with 93.98% held via CDSL and 5.90% via NSDL. Only a marginal 0.12% of the total equity remains in physical form, indicating high digital adoption among shareholders.
- Total issued and listed capital stands at 1,925,65,89,795 shares as of June 30, 2026
- 93.978% of total shares (18,09,69,55,261 units) are held in dematerialized form with CDSL
- 5.9024% of total shares (1,13,65,99,934 units) are held in dematerialized form with NSDL
- Only 0.1196% (2,30,34,600 shares) are still held in physical form
- Zero changes were recorded in the share capital during the quarter under consideration
Indian Overseas Bank (IOB) has informed the exchanges that the audio recording of its Analyst Meet/Earnings Call, held on July 20, 2026, is now available on its website. The call discussed the bank's financial performance for the quarter ended June 30, 2026. This is a standard regulatory disclosure following the release of quarterly results. Investors can use the recording to gain insights into management's outlook on credit growth and asset quality.
- Analyst meet/earnings call conducted on July 20, 2026, at 17:30 IST
- Discussion focused on financial performance for the quarter ended June 30, 2026
- RAM (Retail, Agriculture, MSME) business constitutes 73.39% of the bank's advances
- Credit-to-Deposit (CD) ratio was 78.72% as of the last fiscal year-end
- Promoter holding remains high at 92.44% as of March 2026
Indian Overseas Bank (IOB) reported a robust 49.32% YoY increase in net profit to ₹1,659 Cr for Q1 FY27, supported by a 34.30% growth in Net Interest Income (NII). Asset quality reached a significant milestone with Gross NPA declining to 1.33% and Net NPA hitting a low of 0.18%. While advances grew 22.75% YoY, led by the RAM (Retail, Agri, MSME) segment, the bank faced pressure on operating expenses, which surged 68.81% YoY due to an 80.45% jump in staff costs. The CASA ratio also saw a contraction, falling to 41.05% from 43.78% a year ago.
- Net Profit increased by 49.32% YoY to ₹1,659 Cr for the quarter ended June 2026.
- Gross NPA improved significantly to 1.33%, down 64 bps from 1.97% in June 2025.
- RAM (Retail, Agri, MSME) advances grew 35.82% YoY, now accounting for 81.21% of domestic advances.
- Domestic Net Interest Margin (NIM) expanded by 31 bps YoY to 3.48%.
- Staff expenses spiked 80.45% YoY to ₹2,104 Cr, contributing to a higher cost-to-income ratio of 53.95%.
Indian Overseas Bank (IOB) has filed its quarterly Security Cover Certificate for the period ended June 30, 2026, as required by SEBI regulations. The bank reported a 'NIL' security cover, clarifying that all its outstanding listed non-convertible debt securities are unsecured. This is a standard procedural disclosure for banks that issue unsecured bonds (like Tier-II bonds) to meet capital requirements. The certificate was issued by R. Devendra Kumar & Associates and confirms the data matches the bank's unaudited financial results for the same quarter.
- Security cover reported as NIL for the quarter ended June 30, 2026
- All outstanding listed non-convertible debt securities are confirmed to be of unsecured nature
- Compliance filing submitted under Regulation 54(2)/(3) of SEBI (LODR) Regulations, 2015
- The certificate is based on standalone unaudited financial results for the quarter ended June 30, 2026
- Independent auditor's report issued by R. Devendra Kumar & Associates on July 20, 2026
Indian Overseas Bank (IOB) reported a strong Q1 FY27 with net profit rising 49.32% YoY to ₹1,659 crore, supported by a 34.30% surge in Net Interest Income (NII). Asset quality reached multi-year highs as Gross NPA fell to 1.33% and Net NPA reached a negligible 0.18%. Credit growth was robust at 22.75% YoY, significantly outpacing deposit growth of 13.72%, leading to improved domestic NIM of 3.48%. The bank's slippage ratio hit a historic low of 0.06%, indicating exceptional credit control during the quarter.
- Net Profit increased by 49.32% YoY to ₹1,659 crore for the quarter ended June 2026
- Net Interest Income (NII) grew 34.30% YoY to ₹3,688 crore
- Gross NPA and Net NPA improved significantly to 1.33% and 0.18% respectively
- Total Credit grew 22.75% YoY to ₹3,22,132 crore, led by a 35.82% jump in the RAM segment
- Slippages reduced to ₹195 crore, resulting in a historic low slippage ratio of 0.06%
Indian Overseas Bank (IOB) has filed its quarterly statement of deviation or variation for the period ended June 30, 2026. The bank confirmed that there has been zero (NIL) deviation in the utilization of proceeds from the issuance of Equity Shares and Non-convertible Debt securities. This filing is a mandatory compliance requirement under SEBI (LODR) Regulations 32(1) and 52(7). It signifies that the capital raised from the market is being used exactly as specified in the original offer documents.
- Reported NIL deviation or variation in the utilization of issue proceeds for the quarter ended June 30, 2026
- Covers funds raised through both Equity Shares and Non-convertible Debt securities
- Complies with SEBI (LODR) Regulations 32(1), 52(7), and 52(7A)
- The statement was officially signed and submitted on July 20, 2026
Indian Overseas Bank (IOB) has scheduled its earnings conference call for the quarter ended June 30, 2026, on July 20, 2026, at 17:30 IST. The management, including MD & CEO Ajay Kumar Srivastava, will discuss the bank's financial results. This follows a quarter (March 2026) where the bank reported an operating profit of ₹2,665 crore and a net profit of ₹1,505 crore. As of June 30, 2026, the bank's domestic footprint has grown to 3,522 branches and 3,691 ATMs.
- Earnings call scheduled for July 20, 2026, at 5:30 PM IST to discuss Q1 FY27 results.
- Bank reported an operating profit of ₹2,665 crore for the quarter ended March 31, 2026.
- Domestic network expanded to 3,522 branches and 3,691 ATMs as of June 30, 2026.
- The bank currently serves a customer base of over 46 million across India and four overseas locations.
- Management participants include the MD & CEO and two Executive Directors.
Indian Overseas Bank (IOB) has submitted the voting results and scrutinizer's report for its 26th Annual General Meeting (AGM) conducted on July 7, 2026. The bank confirmed that all resolutions proposed in the notice dated May 21, 2026, were passed by shareholders with the requisite majority. This filing is a standard regulatory requirement following the conclusion of an AGM. Given the high promoter holding of 92.44%, the voting outcomes typically align with government-backed resolutions.
- 26th Annual General Meeting successfully held on July 7, 2026, via video conferencing.
- All resolutions from the May 21, 2026, notice were passed with the requisite majority.
- Promoter holding stands at 92.44% as of the latest March 2026 filing.
- The bank operates a network of 3,335 domestic branches and 4 overseas branches.
Financial Performance
Revenue Growth by Segment
Total operating income grew 13.36% YoY from INR 29,706 Cr in FY24 to INR 33,676 Cr in FY25. In Q1FY26, total income reached INR 8,866 Cr, a 17.15% increase from INR 7,568 Cr in Q1FY25. Advances grew 14.15% YoY to INR 2,50,019 Cr in FY25, with the RAM (Retail, Agri, MSME) segment growing to constitute 73.39% of the book by June 2025.
Geographic Revenue Split
The bank exhibits high regional concentration with the top five states contributing approximately 70% of advances and 64% of total deposits. Tamil Nadu is the primary driver, accounting for 38% of advances and 35% of total deposits as of June 30, 2025.
Profitability Margins
Return on Total Assets (ROTA) improved from 0.80% in FY24 to 0.90% in FY25, further rising to 1.14% in Q1FY26. Net Profit After Tax (PAT) increased 25.56% from INR 2,656 Cr in FY24 to INR 3,335 Cr in FY25. H1FY26 PAT stood at INR 2,337 Cr, a 65.74% increase over H1FY25 (INR 1,410 Cr).
EBITDA Margin
Operational expenses as a percentage of total assets decreased from 2.64% in FY24 to 2.08% in FY25, reflecting improved efficiency. However, credit costs increased to 1.12% in FY25 from 1.02% in FY24 due to higher slippages, impacting core profitability.
Capital Expenditure
The bank raised INR 1,436 Cr via Qualified Institutional Placement (QIP) in Q4 FY25 to strengthen its capital base. Government of India previously infused INR 24,074 Cr between FY18 and FY22 through recapitalization bonds to support solvency.
Credit Rating & Borrowing
The bank maintains a strong liquidity profile with a Liquidity Coverage Ratio (LCR) of 123.54% and a Net Stable Funding Ratio (NSFR) of 128.49% as of June 2025. The bank reduced its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points effective December 15, 2025.
Operational Drivers
Raw Materials
For IOB, the primary 'raw material' is its deposit base, with CASA (Current Account Savings Account) deposits representing 43.78% of total deposits as of June 30, 2025. Interest-bearing funds are the core cost driver.
Import Sources
Not applicable as a financial institution; however, the bank sources 35% of its deposits and 38% of its advances from the state of Tamil Nadu, indicating high domestic regional sourcing of capital.
Key Suppliers
Not applicable; however, the bank relies on the Government of India (94.61% owner) for capital support and the RBI for liquidity facilities like the Marginal Standing Facility (MSF) and Repo operations.
Capacity Expansion
As of March 31, 2025, IOB operated 3,335 domestic branches, 3,497 ATMs, and 10,135 business correspondence (BC) relationships. It also maintains 4 overseas branches in Singapore, Hong Kong, Colombo, and Bangkok.
Raw Material Costs
Cost of interest-bearing funds is competitive due to a robust CASA base of 43.78%. The bank's credit cost stood at 1.12% in FY25, reflecting the cost of asset quality maintenance.
Manufacturing Efficiency
The Credit-to-Deposit (CD) ratio improved to 78.72% as of March 31, 2025, from 74.61% in FY24, indicating better utilization of the deposit base for lending activities.
Logistics & Distribution
Distribution is handled through 3,335 branches and 10,135 BC relationships. The bank aims to expand banking outlets to cover more districts to increase market reach.
Strategic Growth
Expected Growth Rate
19.43%
Growth Strategy
The bank targets growth by increasing interest income from the RAM (Retail, Agriculture, MSME) business, which already constitutes 73.39% of advances. It is also pursuing strategic relationships with corporate and government entities for employee-based products and increasing fee-based income through bancassurance.
Products & Services
Retail loans, agricultural credit, MSME financing, corporate loans, savings accounts, current accounts, and non-life insurance products through its JV.
Brand Portfolio
Indian Overseas Bank (IOB), Sakthi IOB Chidambaram Chettiar Memorial Trust, Sneha (Financial Literacy Centres).
New Products/Services
The bank is focusing on digital banking products and credit schemes specifically for women to drive financial inclusion and new customer acquisition.
Market Expansion
IOB plans to open new banking outlets to cover more districts and leverage its 4 overseas branches to capture international business.
Market Share & Ranking
As of June 30, 2025, IOB's share in sector-wide deposits was 1.45% (down from 1.65% in 2021), while its share in total advances improved to 1.41% (up from 1.24% in 2021).
Strategic Alliances
Joint ventures include Universal Sompo General Insurance (18.06% stake) and Indian International Bank Malaysia (35% stake). It also sponsors the Odisha Gramya Bank (35% stake).
External Factors
Industry Trends
The industry is shifting toward an Expected Credit Loss (ECL) framework for provisioning. There is also a significant trend toward digital banking to reduce operating costs and improve customer interface.
Competitive Landscape
IOB competes with 11 other Public Sector Banks (PSBs) and private banks. It maintains a competitive cost of funds relative to the PSB average due to its retail franchise.
Competitive Moat
IOB's moat is its 94.61% sovereign ownership, which ensures high depositor confidence and capital support. Its strong CASA base (43.78%) provides a sustainable low-cost funding advantage over many private peers.
Macro Economic Sensitivity
The bank is sensitive to interest rate cycles; repo rate cuts impact NIM. It is also exposed to geopolitical issues and tariffs which could affect its corporate and overseas loan portfolios.
Consumer Behavior
Customer preferences are shifting toward digital banking, prompting IOB to enhance its digital interface to prevent customer churn and reduce physical overhead.
Geopolitical Risks
Ongoing geopolitical tensions and the impact of international tariffs are cited as potential risks that could adversely impact asset quality metrics.
Regulatory & Governance
Industry Regulations
The bank must comply with RBI's SLR (currently holding 7.22% excess), LCR, and NSFR requirements. It is also preparing for the transition to the Expected Credit Loss (ECL) provisioning framework.
Environmental Compliance
Direct environmental risk is low, but indirect credit risk exists if the bank's asset portfolio (borrowers) is impacted by climate factors. The bank uses short-to-medium term lending to mitigate this.
Taxation Policy Impact
Not specifically disclosed; however, the bank reported a PAT of INR 3,335 Cr in FY25 after all applicable taxes and provisions.
Legal Contingencies
The bank is currently in non-compliance with SEBI LODR regulations as its 10-member Board does not include a female director. No specific INR values for pending court cases were disclosed.
Risk Analysis
Key Uncertainties
The primary uncertainty is the ability to limit slippages from the 'vulnerable book' (SMA-1, SMA-2, and restructured accounts) amidst concerns of retail over-leveraging.
Geographic Concentration Risk
High concentration in Tamil Nadu, which accounts for 38% of advances and 35% of deposits, creating a single-state economic dependency.
Third Party Dependencies
Significant dependency on the Government of India for capital (94.61% stake) and on Business Correspondents (10,135) for rural distribution.
Technology Obsolescence Risk
The bank faces the risk of falling behind digital-native competitors, necessitating continuous investment in technology infrastructure and cybersecurity.
Credit & Counterparty Risk
Gross NPA stood at 1.83% and Net NPA at 0.28% as of September 2025. The top 20 borrowers represent 104.23% of net worth, indicating high counterparty concentration risk.
