Indian Overseas Bank (IOB)
Large CapFinancial Services stocks · Large cap · NSE
Indian Overseas Bank is a public sector bank offering a comprehensive suite of financial products and services. The bank reported strong growth in advances, deposits, and profitability for Q1FY27, alongside significant improvements in asset quality and capital adequacy, supported by a high government ownership.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 75/100Rev +19% YoY · PAT +46% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹8,778 Cr | +18.8% | +3.4% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹1,716 Cr | +45.7% | +10.3% |
| PAT margin | 19.6% | +360 bps | +122 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Indian Overseas Bank reports robust Q1FY27 performance with Net Profit up 49.32% YoY to Rs 1659 Cr, driven by 34.30% YoY NII growth and 22.75% YoY advances growth. Asset quality improved significantly with GNPA at 1.33% and NNPA at 0.18%.
The bank demonstrated strong financial and operational improvements, with significant growth in advances, deposits, and profitability. Asset quality metrics show continued improvement, and capital adequacy remains robust, supporting future growth. However, the sharp rise in operating expenses warrants close monitoring.
Advances by Segment (June 2026)
Latest issuer-disclosed distribution across 4 reported categories.
Retail Advances
Grew 36.49% YoY to Rs 96,637 Cr in Jun-26, contributing 32% to total advances.
Agriculture Advances
Grew 46.84% YoY to Rs 112,403 Cr in Jun-26, contributing 37% to total advances.
MSME Advances
Grew 16.15% YoY to Rs 52,554 Cr in Jun-26, contributing 17% to total advances.
Digital Adoption
UPI registered users grew to 166.62 lakhs, Mobile Banking to 137.65 lakhs, and Internet Banking to 40.57 lakhs in Jun-26.
Domestic Branches
Increased to 3522 in Jun-26 from 3494 in Mar-26 and 3345 in Jun-25.
ATM/CR Outlets
Increased to 3691 in Jun-26 from 3651 in Mar-26 and 3461 in Jun-25.
Business Correspondents (BC)
Increased to 13401 in Jun-26 from 12187 in Mar-26 and 10872 in Jun-25.
Strong RAM Segment Growth
Retail, Agri, and MSME segments are driving advances growth, with RAM to Advances ratio at 81.21% in Jun-26.
Improved Asset Quality
Consistent reduction in GNPA and NNPA ratios, with slippage ratio at 0.06% in Jun-26, indicating better credit health.
Digital Transformation
Increasing digital user base and new digital offerings like IOB Digital FD, VCIP, WhatsApp Banking, and Unified Lending Interface (ULI).
Operating Expenses Growth
Operating expenses increased 68.81% YoY and 50.52% QoQ, significantly outpacing operating profit growth.
CASA Ratio Decline (YoY)
Global CASA% declined 273 bps YoY, though it saw a slight QoQ increase.
Operational Risk RWA Increase
Operational Risk RWA increased to Rs 26,365 Cr in Jun-26 from Rs 22,587 Cr in Mar-26.
Staff Expenses Surge
Staff expenses grew 80.45% YoY and 109.15% QoQ, contributing significantly to the rise in operating expenses.
Volatility in Non-Interest Income
Profit/Loss on Sale of Investments was volatile, with a loss of Rs 63 Cr in Mar-26 before a gain of Rs 194 Cr in Jun-26.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The document provides both YoY and QoQ comparisons for most financial metrics, which is crucial for assessing both long-term trends and recent sequential momentum in a financial services business like banking.
NIM (Domestic)
3.48% for Jun-26, up 31 bps YoY from 3.17% in Jun-25.
NIM (Global)
3.37% for Jun-26, up 33 bps YoY from 3.04% in Jun-25.
Advances Growth (Global)
22.75% YoY to Rs 322,132 Cr in Jun-26; 3.77% QoQ from Mar-26.
Total Deposits Growth
13.72% YoY to Rs 376,193 Cr in Jun-26; 2.17% QoQ from Mar-26.
Digital Transformation Focus
Management is focused on self-service, mobile-first digital solutions, robotic automation, AI/ML, and leveraging Digital Public Infrastructure.
Customer-Centric Innovations
Launching IOB Digital FD, VCIP, IOB BUDDY chatbot, IOB Digital Hub, and online Re-KYC to enhance customer experience.
Employee-Centric Innovations
Implementing IOB Gold Nest, Geo-location based lead generation, Tab Banking, and Loan Origination System for operational efficiency.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Operating Expenses Growth | 68.81% YoY, 50.52% QoQ | Moderation in operating expense growth to sustain profitability and improve cost-to-income ratio. |
| CASA Ratio (Global) | 41.05% | Stability or improvement in CASA ratio to manage cost of funds and maintain NIM. |
| Slippage Ratio | 0.06% | Continued low slippage ratio to maintain asset quality and control credit costs. |
| RAM Segment Contribution | 81.21% of advances | Sustained high growth and contribution from Retail, Agri, and MSME segments to drive overall advances growth. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
41NeutralSMA20 -2.6% / mo · MACD +
Technical chart
IOBdaily · 1Y · AUTO-2.9%Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 53. Wait for confirmation.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~2.7% over last month) — short-term momentum negative.
- RSI(14) at 53 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 20% off 52W high · 8% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is within 1.4% of the 30-week proxy.
- The 30-week proxy changed -0.7% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 63 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 63 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 6.4%.
- Fair-value margin of safety is positive at 60.9%.
- Cash flow contributes 9/10 to the score.
Main drags
- Quality is weaker at 8/20; verify the latest quarterly trend.
- Balance sheet is weaker at 7/15; verify the latest quarterly trend.
- Growth is weaker at 16/25; verify the latest quarterly trend.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 83rd percentile of the scored universe and 90th percentile within Financial Services. Main check: financial discipline is weak at 56/100.
High Trust Lite: Promoter holding is 92.4%. Key concern: Promoter holding fell 2.2%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Financial Services: 90th pctile, median 62 · Large: 65th pctile, median 73
104 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 92.4%.
- ▸Promoter pledge is zero.
- ▸FCF yield is 6.4%.
- ▸4 years of positive FCF.
Trust risks
- ▸Promoter holding fell 2.2%.
- ▸ROCE is low at 6.1%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 10.80
- P/B
- 1.66
- EV/EBITDA
- —
- Market Cap
- 64606.00Cr
Profitability
- ROE
- 15.60%
- ROCE
- 6.12%
- ROA
- 1.26%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 13.00%
- EPS 5Y
- 48.00%
- Revenue 3Y
- 18.00%
- EPS 3Y
- 37.00%
Balance Sheet
- Debt/Equity
- 0.13
- Interest Coverage
- —
- Altman Z
- 1.84
- Book Value
- 20.20
Cash Flow
- FCF Yield
- 6.41%
- FCF Positive Y
- 4/5
- OCF
- 4780.00 Cr
- EPS TTM
- 3.09
Shareholding
- Promoter Hold
- 92.44%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 23%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable names in Financial Services, ranked by similarity
Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.