Indian Overseas Bank (IOB) share price
₹31.03 on NSE as of 2026-10-07. -1.37% on the day. market cap ₹59,753 Cr. P/E 10.1. 52-week range ₹30.38 to ₹40.67. Financial Services.
What the company does
Financial services Financial services Banks Public sector bank IOB was founded by M. Ct. M. Chidambaram Chettiyar in 1937 and was nationalised by GoI in 1969. Currently, IOB is one of the 12 PSBs in India. As on June 30, 2026, GoI holds 92.44% in IOB followed by institutional investors, public, and others. As on June 30, 2026, IOB was operating in India through 3,526 branches, 3,691 ATMs, and 13,401 business correspondence (BC) relationships. The bank also has presence in overseas countries through four branches, Singapore, Hong Kong, Colombo, and Bangkok. As on June 30, 2026, IOB has a total business (Deposits + Advances) of ₹694,594 crore through its domestic ( 3,522 branches) and overseas presence (four countries). IOB has two joint ventures (JVs), Universal Sompo General Insurance Company Limited (USGI) with equity participation of 18.06%, and Indian International Bank (Malaysia), Berhad, (IIMB) with equity participation of 35%. In addition, the bank is also a sponsor for an RRB, Odisha Gramya Bank (35% shareholding), and a shareholding of 26% in ACER Credit Rating Pvt Ltd.
Filed by CARE Ratings, page 5.
Indian Overseas Bank Q1 FY27: Net Profit Jumps 49% to ₹1,659 Cr While Operating Profit Moves Just 14%
At a glance
Indian Overseas Bank reported net profit of ₹1,659 crore for the three months to June 2026. That is 49.3% higher than the ₹1,111 crore of the same quarter a year earlier. It is 10.2% above the ₹1,505 crore the bank earned in the previous quarter. Interest earned came to ₹8,778 crore, 18.8% more than a year ago. Operating profit before provisions, the profit left before bad-loan charges, was ₹2,693 crore. That line grew 14.2% over the year and 1.1% over the previous quarter.
The two growth rates differ, and the lines below operating profit carry the difference. Total provisions, money set aside against loans that may sour, were ₹834 crore. A year earlier the figure was ₹844 crore. The tax charge fell to ₹200 crore from ₹403 crore. That put the quarterly tax rate near 11%. Non-interest income rose to ₹2,160 crore from ₹1,481 crore. Within it, commission on priority-sector lending certificates was ₹863 crore, per the bank's disclosures. A year earlier that commission was ₹199 crore. Banks lending beyond their required quota to farming and small business sell those certificates to banks falling short.
Asset quality improved on each measure the bank reports. Gross bad loans fell to 1.33% of advances, from 1.97% a year earlier. Net bad loans, counted after money already set aside, fell to 0.18% from 0.32%. The slippage ratio, the share of healthy loans turning bad in a period, was 0.06%. Capital adequacy, the cushion regulators require against lending, stood at 19.36%. The Government of India holds 92.44%, after an offer for sale in December 2025. Earnings per share for the quarter were ₹0.86, against ₹0.58 a year earlier.
Introduction
Indian Overseas Bank was founded in 1937 by M Ct M Chidambaram Chettyar. It was nationalised in 1969, one of 14 major banks taken into government hands that year. The head office has stayed in Chennai ever since. As of June 2026 the bank ran 3,522 branches across India. It also ran 3,691 cash machines. Four further branches sit abroad, in Singapore, Hong Kong, Bangkok and Colombo.
The recent history is a recovery with a paper trail behind it. The Reserve Bank of India placed the bank under its Prompt Corrective Action framework in October 2015, after bad loans mounted. That framework limits what a weakened lender may do until its books mend. The Government put fresh capital into the bank over the years that followed. The bank left the framework in September 2021. Gross bad loans stood at 9.82% of advances in the year to March 2022. The same ratio is 1.33% in the three months to June 2026.
Several corporate actions were already under way when the quarter closed. Shareholders have approved a plan to raise up to ₹5,000 crore of fresh equity. The tenure of the managing director and chief executive has been extended to October 2027. CRISIL, a credit-rating agency, upgraded the bank's fixed-deposit programme to AAA in June 2026. That upgrade was the latest in a sequence of ratings actions on the bank.
In July 2026 the bank set its entire accumulated losses of ₹18,733 crore against its share premium account. Share premium is money shareholders paid above the face value of their shares. The step clears those carried-forward losses from the balance sheet. Management has tied it to an intent to resume dividends, and has said it means to propose a first dividend in the year to March 2027.
Business model
Indian Overseas Bank is a public sector bank, which means the state owns most of its shares. The trade is the oldest in finance: take deposits at low rates, lend at higher ones, keep the gap. Deposits stood at ₹3,76,193 crore at the end of June 2026. Advances stood at ₹3,22,132 crore. Together they make what the bank calls its business mix, ₹6,98,325 crore.
Where the lending sits has moved. The bank groups retail, agriculture and small business loans together as RAM. That group is now 81.21% of domestic advances, against 73.39% a year earlier. Agriculture alone stands at ₹1,12,403 crore, up 46.8% over the year. Retail lending stands at ₹96,637 crore, up 36.5%. The corporate book shrank 13.7% over the year, to ₹44,405 crore.
Management describes that corporate shrinkage as deliberate. It told the earnings call the bank exited one large corporate government account in April, over pricing. That account was worth roughly ₹10,000 crore. On lending below 7%, management said: "just for the sake of increasing corporate book at sub 7% rate of interest, we are certainly not interested."
The cost side of the model is what the bank pays for its deposits. Current and savings accounts, the lowest-cost money a bank holds, are 41.05% of deposits globally. About 90% of deposits come from retail depositors rather than large institutions. The branch network is where most of that money is gathered.
So the model is a lender that spent a decade tidying its loan book. It has moved towards small-ticket agriculture and retail lending, and away from large corporate borrowers. An 88-year-old bank walking away from ₹10,000 crore of government business over price is a novelty, and management said so on the call. The Government of India owns 92.44% of the shares.
Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Indian Overseas Bank.
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