Indian Overseas Bank — Q1 FY27 earnings call
Summary generated by AI from the official transcript Indian Overseas Bank filed with BSE on 24 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Indian Overseas Bank reported an all-time high quarterly net profit of INR 1,659 crores for Q1 FY27, up 49.32% year-on-year, with operating profit of INR 2,693 crores, up 14.21% year-on-year. Net interest margin improved to 3.37% globally and 3.48% domestically, while gross NPA fell to 1.33% and net NPA to 0.18%. Management discussed a board-approved INR 5,000 crore capital raising plan, ECLGS disbursement progress, and provisioning built up against expected credit loss requirements.
Numbers mentioned
Net profit: INR 1,659 crores (Q1 FY27)
p. 3
“the bank has reached a new milestone by achieving an all-time high quarterly net profit of INR 1,659 crores for this quarter as compared to INR 1,111 crores as on June 30, 2025 with 49.32% year-on-year increase.”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Operating profit: INR 2,693 crores (Q1 FY27)
p. 3
“Bank has achieved the operating profit of INR 2,693 crores, registering a year-on-year growth of 14.21%.”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Business mix: INR 6,98,325 crores (Q1 FY27)
p. 3
“bank has achieved a business mix of INR 6,98,325 crores, recording a year-on-year growth of over 17.72%.”
Raghuram Mallela, page 3 of the filed PDF · View the filing
CASA ratio domestic: 41.45% (June 2026)
p. 3
“CASA ratio domestic as on June 2026 stood at 41.45%.”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Total deposits: INR 3,76,193 crores (Q1 FY27)
p. 3
“Total deposits reached at INR 3,76,193 crores as on 30 June 2026 with a year-on-year growth rate of 13.72%.”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Total advances: INR 3,22,132 crores (Q1 FY27)
p. 3
“Total advances increased year-on-year by 22.75%, reaching INR 3,22,132 crores as against INR 2,62,421 crores as of 30th June 2025.”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Provision coverage ratio: 97.67% (June 2026)
p. 3
“Provision coverage ratio improved to 97.67% as on 30 June 2026 as compared to 97.47% as on 30 June 2025.”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Capital adequacy ratio: 19.36% (June 2026)
p. 4
“Capital adequacy ratio stood at 19.36% as against the regulatory requirement of 11.50%.”
Raghuram Mallela, page 4 of the filed PDF · View the filing
Net interest margin global: 3.37% (Q1 FY27)
p. 4
“Net interest margin global for the quarter ended 30 June 2026 is 3.37% with an increase of 12 bps as compared to 3.25% as of the last quarter March 2026.”
Raghuram Mallela, page 4 of the filed PDF · View the filing
Net interest margin domestic: 3.48% (Q1 FY27)
p. 4
“Net interest margin domestic stood at 3.48% for the quarter ended June 2026 as compared to 3.35% for the quarter ended March 2026.”
Raghuram Mallela, page 4 of the filed PDF · View the filing
Gross NPA: 1.33% (June 2026)
p. 4
“GNPA percentage has reduced by 64 bps year-on-year from 1.97% as on June 2025 and reached 1.33% as on June 2026.”
Raghuram Mallela, page 4 of the filed PDF · View the filing
Net NPA: 0.18% (June 2026)
p. 4
“net NPA percentage has also been reduced by 14 bps year-on-year from 0.32% as on June 2025, and it stood at 0.18% as on June 2026.”
Raghuram Mallela, page 4 of the filed PDF · View the filing
Slippage ratio: 0.06% (Q1 FY27)
p. 4
“The slippage ratio of the bank is reduced to 0.06% for the quarter ended June 2026 as against 0.10% as on June 2025.”
Raghuram Mallela, page 4 of the filed PDF · View the filing
Return on assets: 1.41% (Q1 FY27)
p. 4
“there is a significant improvement in return on assets, which stood at 1.41% for the quarter ended June 2026, with a 27 bps increase as compared to June 2025.”
Raghuram Mallela, page 4 of the filed PDF · View the filing
Book value per share: INR 15.79 (June 2026)
p. 4
“With regard to book value per share, it improved to INR 15.79 for June 2026 when compared to INR 12.41 for June 2025.”
Raghuram Mallela, page 4 of the filed PDF · View the filing
Return on equity: 22.69% (June 2026)
p. 4
“Currently, return on equity stood at 22.69% when compared to 19% for June 2025.”
Raghuram Mallela, page 4 of the filed PDF · View the filing
Earnings per share: 0.86 (June 2026)
p. 4
“Earnings per share for June 2026 is 0.86 which improved from 0.58 as on June 2025.”
Raghuram Mallela, page 4 of the filed PDF · View the filing
Total SMA: 4.05% (Q1 FY27)
p. 6
“So total SMA is INR13,000 crores, percentage terms, it is 4.05%.”
Ajay Kumar Srivastava, page 6 of the filed PDF · View the filing
Credit cost: 0.14% (Q1 FY27)
p. 13
“Credit cost for June quarter is 0.14%.”
Ajay Kumar Srivastava, page 13 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Net interest margin — 3.3% to 3.4% · remaining FY27 quarters
stated firmly by Ajay Kumar Srivastava
p. 6
“We are pretty sure that going forward also, sir, NIM will be in this range only around 3.3 to 3.4.”
Ajay Kumar Srivastava, page 6 of the filed PDF · View the filing
Credit growth — 13% to 14% minimum · FY27
stated firmly by Ajay Kumar Srivastava
p. 9
“See, credit growth, we are intending to grow at around 13% to 14%.”
Ajay Kumar Srivastava, page 9 of the filed PDF · View the filing
Return on assets — around 1.46% · FY27 year end
stated as an aspiration by Ajay Kumar Srivastava
p. 9
“So going forward, by end of this year, maybe financial year, maybe we are looking at around 1.46%.”
Ajay Kumar Srivastava, page 9 of the filed PDF · View the filing
Corporate loan book growth — 12% to 13% · by end of this year
stated firmly by Ajay Kumar Srivastava
p. 7
“And we expect that the corporate loan book also, by the end of this year will grow by 12% to 13%.”
Ajay Kumar Srivastava, page 7 of the filed PDF · View the filing
ECLGS disbursement completion — 95% to 100% of ECLGS disbursement · August end or September first week
stated firmly by Ajay Kumar Srivastava
p. 5
“We are pretty sure that 95% to 100% of ECLGS disbursement will certainly take place by August end or September first week.”
Ajay Kumar Srivastava, page 5 of the filed PDF · View the filing
ECL provisioning — entire INR 3,000 crores requirement · by end of this financial year
stated firmly by Ajay Kumar Srivastava
p. 6
“in coming quarters also, we will be equally making a provision going forward so that by the end of this financial year, the entire requirement of ECLGS can be taken care of in one shot.”
Ajay Kumar Srivastava, page 6 of the filed PDF · View the filing
Capital raising — INR 5,000 crores · Q3 or Q4
stated conditionally by Ajay Kumar Srivastava
p. 7
“And we expect that in this quarter, it will happen. So maybe in Q3 or Q4, depending on the market conditions, we will go to the market maybe in 1 or 2 or maybe more than 2 tranches also.”
Ajay Kumar Srivastava, page 7 of the filed PDF · View the filing
GIFT City book size — around 500 million · by end of this financial year
stated firmly by Ajay Kumar Srivastava
p. 12
“And we are looking to build a book of around 500 million by the end of this financial year through this GIFT City branch.”
Ajay Kumar Srivastava, page 12 of the filed PDF · View the filing
FCNR deposits — double to $600 million, $650 million · by September
stated firmly by Ajay Kumar Srivastava
p. 12
“We intend to double it, maybe by the time this dispensation period which is coming to an end in September. By September, we intend to double it to $600 million, $650 million.”
Ajay Kumar Srivastava, page 12 of the filed PDF · View the filing
Full year credit cost — 0.35% to 0.40% · full year FY27
stated conditionally by Ajay Kumar Srivastava
p. 13
“And we expect that for the full year, the credit cost should be around 0.35% to 0.40%.”
Ajay Kumar Srivastava, page 13 of the filed PDF · View the filing
Asset and liability growth — 13% to 14% minimum
stated firmly by Ajay Kumar Srivastava
p. 13
“We intend to grow both sides assets and liabilities by 13% to 14% and as I said that is the minimum.”
Ajay Kumar Srivastava, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said NII growth is the major driver and PSLC/recovery income is a routine, recurring component across quarters.
Answered by Ajay Kumar Srivastava
Asked by Ashok Ajmera: Whether the profitability, driven partly by PSLC commission and recovery from written-off accounts, is sustainable for the rest of FY27.
p. 5
“In fact, if you look at last 8 to 9 quarters numbers, these 2 parameters are there in all quarters. PSLC sale income. And so this isintegral part of non interest income. And that will continue, of course, it is stable, and it will continue going forward also.”
Ajay Kumar Srivastava, page 5 of the filed PDF · View the filing
Management gave disbursement figures and said no sector-wide stress has been observed from West Asia issues.
Answered by Ajay Kumar Srivastava
Asked by Ashok Ajmera: Status of ECLGS sanctions and disbursements and whether stress is emerging from the West Asia conflict.
p. 5
“So far we have not seen. Individual cases are there. But not as one product or one sector that this particular product or sector is struggling because of West Asia crisis.”
Ajay Kumar Srivastava, page 5 of the filed PDF · View the filing
Management detailed the estimated requirement and provisioning done so far, confirming it will not opt for the four-year dispensation.
Answered by Ajay Kumar Srivastava
Asked by Ashok Ajmera: What is the ECL provisioning buffer and whether the bank will use the four-year dispensation.
p. 6
“as part of our internal discussion, we do not intend to go for a four-year dispensation.”
Ajay Kumar Srivastava, page 6 of the filed PDF · View the filing
Management attributed the yield rise to pricing across segments and explained the corporate book decline was due to exiting one large account on pricing grounds.
Answered by Ajay Kumar Srivastava
Asked by Ashlesh Sonje: Why yield on advances increased and what is happening with the corporate loan book decline.
p. 8
“See, for IOB, this 10% decline is because of one bigger account around -- amounting to around INR 10,000 crores, which we -- in the first month of this financial year in the month of April itself, since pricing was not matching, so we came out of that arrangement.”
Ajay Kumar Srivastava, page 8 of the filed PDF · View the filing
Management said aggressive CASA focus and limited reliance on bulk deposits reduced the cost of deposits.
Answered by Ajay Kumar Srivastava
Asked by Ashlesh Sonje: What has driven the decline in cost of deposits.
p. 8
“We have focused on CASA very aggressively. And we -- despite 13% or 14% growth in total deposit and 18% growth -- 17% growth in the retail term deposits, we have been able to maintain CASA of 41% on a consistent basis.”
Ajay Kumar Srivastava, page 8 of the filed PDF · View the filing
Management said the improvement will be NIM-driven through both higher interest income and lower interest expenses.
Answered by Ajay Kumar Srivastava
Asked by Aditya Mundra: What will drive the ROA improvement going forward, NIM or opex.
p. 9
“It will be NIM driven.”
Ajay Kumar Srivastava, page 9 of the filed PDF · View the filing
Management said the increase came from recovery on technically written-off accounts and PSLC commission.
Answered by Ajay Kumar Srivastava
Asked by Kushal: What explains the large quarter-on-quarter jump in miscellaneous income.
p. 10
“Miscellaneous income, it includes recovery from technically written off account and PSLC commission is there, So these two are the major components in addition to processing fees.”
Ajay Kumar Srivastava, page 10 of the filed PDF · View the filing
Management gave the current quarter credit cost and a range for the full year.
Answered by Ajay Kumar Srivastava
Asked by Aryan Rana: What is the full year credit cost guidance for FY27.
p. 13
“Credit cost for June quarter is 0.14%. And we expect that for the full year, the credit cost should be around 0.35% to 0.40%.”
Ajay Kumar Srivastava, page 13 of the filed PDF · View the filing
Risks flagged
Renewed West Asia conflict as a potential source of stress on borrowers
p. 11
“But otherwise, despite challenges like West Asia challenges, again, it is looming large now.”
Ajay Kumar Srivastava, page 11 of the filed PDF · View the filing
SMA 2 accounts increased over the previous quarter
p. 6
“Ajmera Sir, SMA 2 has increased by INR500 crores over March, that is correct.”
Ajay Kumar Srivastava, page 6 of the filed PDF · View the filing
Additional ECL provisioning requirement not yet fully provided for
p. 6
“So the same strategy continues. Our initial assessment or internal assessment, I will say, it is to the tune of INR 3,000 crores of additional requirement.”
Ajay Kumar Srivastava, page 6 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.