IOB
Large CapIndian Overseas Bank
Financial Services
Indian Overseas Bank is a public sector bank with a strong brand in South India, particularly Tamil Nadu, where it serves as SLBC convenor. 58% of its branches are in rural & semi-urban areas, fostering financial inclusion. It also sponsors Odisha Gramya Bank, a Regional Rural Bank.
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 31 Mar 2026
Good · 65/100Rev +11% YoY · PAT +42% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹8,489 Cr | +11.2% | +3.9% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹1,556 Cr | +42.5% | +9.0% |
| PAT margin | 18.3% | +403 bps | +87 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
IOB reports robust FY26 performance with Net Profit up 56.16% YoY, driven by strong advances growth of 24.16% and significant asset quality improvement, with GNPA% falling 72 bps to 1.42%.
The bank demonstrated strong financial recovery and growth in FY26, marked by substantial profit expansion, healthy credit growth in key segments, and impressive asset quality clean-up. Capital adequacy remains robust, supporting future expansion. However, declining CASA ratio and slight NIM compression warrant monitoring.
% Share of Domestic Advance - Mar 26
Latest issuer-disclosed distribution across 4 reported categories.
Retail Advances
Retail Advances grew by 45.12% YoY to Rs. 91,086 Cr in FY26, contributing 31% to domestic advances.
Agriculture Advances
Agriculture Advances grew by 39.27% YoY to Rs. 103,821 Cr in FY26, forming 35% of domestic advances.
Digital Adoption
UPI registered users increased to 157.62 Lakhs in Mar 26 from 120.69 Lakhs in Mar 25, Mobile Banking users to 129.58 Lakhs from 102.18 Lakhs.
Domestic Branches
Domestic branches increased to 3,494 in Mar 26 from 3,335 in Mar 25.
ATM/CR Outlets
ATM/CR outlets increased to 3,651 in Mar 26 from 3,497 in Mar 25.
Business Correspondents (BCs)
BCs expanded to 12,187 in Mar 26 from 10,135 in Mar 25.
CASA Ratio Decline
CASA% decreased by 266 bps YoY to 40.99% in FY26 from 43.65% in FY25, indicating a shift towards higher-cost deposits.
Non-Interest Income Volatility
Non-Interest Income decreased by 13.88% QoQ and 18.34% YoY in Mar 26, partly due to losses on sale of investments and lower PSLC commission.
NIM Compression
Global NIM slightly declined by 4 bps YoY to 3.21% in FY26, despite a decrease in cost of funds, suggesting yield on advances also compressed.
Overseas NPA Ratio
Overseas NPA ratio remains high at 8.79% in Mar 26, showing an increase from 8.37% in Mar 25.
Slippage Ratio Trend
Slippage ratio increased QoQ to 0.13% in Mar 26 from 0.11% in Dec 25, warranting close observation.
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.
Both annual (YoY) and quarterly (QoQ) comparisons are crucial for financial services. YoY provides a view of overall growth and structural changes, while QoQ highlights recent momentum, asset quality trends, and operational efficiency.
Advances Growth (YoY)
Global Advances grew by 24.16% to Rs. 310,423 Cr in FY26 from Rs. 250,019 Cr in FY25.
Net Interest Margin (NIM) Global
Global NIM decreased by 4 bps YoY to 3.21% in FY26 from 3.25% in FY25. QoQ, it remained stable at 3.21% in Mar 26.
Cost of Funds
Cost of Funds decreased to 4.90% in Mar 26 from 5.29% in Mar 25.
Gross NPA %
GNPA% improved significantly to 1.42% in Mar 26 from 2.14% in Mar 25 (72 bps reduction). QoQ, it fell 12 bps from 1.54% in Dec 25.
Digital Transformation Focus
Management is focused on digital initiatives like IOB Digital FD, Video KYC, IOB Digital Hub, WhatsApp Banking, and Unified Lending Interface (ULI) for customer and employee efficiency.
ESG Integration
The bank promotes ESG initiatives through green products (e.g., IOB Green Deposit, IOB e-Vehicle loans) and financial inclusion schemes.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| CASA Ratio | 40.99% (Mar 26) | Stabilization or improvement in CASA ratio to manage funding costs. |
| Net Interest Margin (NIM) | 3.21% (Mar 26, Global) | Trends in NIM, especially given the slight compression and declining cost of funds. |
| Overseas NPA Ratio | 8.79% (Mar 26) | Any further increase in overseas NPA and management's strategy to address it. |
| RAM Advances Growth | Retail +45.12% YoY, Agri +39.27% YoY | Continued strong growth and asset quality in the high-growth RAM segments. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
41NeutralSMA20 -4.6% / mo · near 52W low
Technical chart
IOBweekly · 6M-9.7%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 46.
- RSI(14) at 46 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 12% off 52W high · 7% 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.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 6.6%.
- Fair-value margin of safety is positive at 64.0%.
- Cash flow contributes 9/10 to the score.
Main drags
- Quality is weaker at 7/20; verify the latest quarterly trend.
- Balance sheet is weaker at 9/15; 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: +0 points.
Factor attribution
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 85th percentile of the scored universe and 94th 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: 94th pctile, median 62 · Large: 66th pctile, median 74
103 documents indexed, 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 6.6%.
- ▸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.
Intrinsic value
Fundamentals
Valuation
- P/E
- 11.60
- P/B
- 1.70
- EV/EBITDA
- —
- Market Cap
- 62988.00Cr
Profitability
- ROE
- 15.60%
- ROCE
- 6.07%
- ROA
- 1.15%
- 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
- 1.83
- Book Value
- 19.20
Cash Flow
- FCF Yield
- 6.57%
- FCF Positive Y
- 4/5
- OCF
- 4780.00 Cr
- EPS TTM
- 2.81
Shareholding
- Promoter Hold
- 92.44%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 14%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%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.