Indian Overseas Bank — Q4 FY26 earnings call
Summary generated by AI from the official transcript Indian Overseas Bank filed with BSE on 14 May 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 total business growth of 20.76% to Rs 6,78,614 crore for FY2026, with advances up 24.16% and deposits up 18.03%. Net profit grew 56.16% to approximately Rs 5,208 crore, while GNPA improved to 1.42% and NNPA to 0.21%. Management also discussed ECL provisioning, treasury performance, MSME and agriculture exposure, and digital initiatives during the analyst Q&A.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Total business: Rs 6,78,614 crore (FY2026)
p. 3
“we grew by 20.76% and it stood at Rs 6,78,614 crores as of 31st March 2026 when compared to Rs 5,61,958 crores”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Advances growth: 24.16% (FY2026)
p. 3
“Advances grew by 24.16%, the total deposits grew by 18.03%, out of which retail term deposits stood at 17.81%”
Raghuram Mallela, page 3 of the filed PDF · View the filing
CASA: 40.99% (FY2026)
p. 3
“CASA stood at 40.99%, and that is in terms of the percentage, in terms of the amount it stood at Rs 1,50,936 crores as of 31st March '26”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Net interest income: Rs 12,574 crore (FY2026)
p. 3
“net interest income stood at Rs 12,574 crores, registering a 15.46% growth on year-on-year basis when compared to Rs 10,890 crores as of 31st March '25”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Net interest margin: 3.21% (FY2026)
p. 3
“Net interest margin stood at 3.21% as of 31st March 2026”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Operating profit: Rs 10,026 crore (FY2026)
p. 3
“Operating profit grew by 15.40% and it stood at an all-time high of Rs 10,026 crores as of 31st March 2026, when compared to Rs 8,688 crores as of 31st March 2025”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Net profit: Rs 5,208 crore (FY2026)
p. 3
“Net profit grew by 56.16% and it stood at approximately Rs 5,208 crores when compared to Rs 3,335 crore as of 31st March 2025”
Raghuram Mallela, page 3 of the filed PDF · View the filing
GNPA: 1.42% (FY2026)
p. 3
“GNPA came down by 72 bps and it stood at 1.42% as of 31st March 2026 when compared to 2.14% as of 31st March 2025”
Raghuram Mallela, page 3 of the filed PDF · View the filing
NNPA: 0.21% (FY2026)
p. 3
“NNPA also came down by 16 bps and it stood at 0.21% as of 31st March 2026 when compared to 0.37% as at 31st March 2025”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Provision coverage ratio: 97.50% (FY2026)
p. 3
“the provision coverage ratio stood at 97.50% as of 31st March 2026, registering a year-on-year growth of 20 bps”
Raghuram Mallela, page 3 of the filed PDF · View the filing
CRAR: 19.78% (FY2026)
p. 3
“CRAR stood at 19.78% when compared to 19.04% as of 31st March 2025”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Return on assets: 1.23% (FY2026)
p. 3
“Return on assets increased by 31 bps and stood at 1.23% as of 31st March 2026, when compared to 0.92% as of 31st March 2025”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Return on equity: 20.42% (FY2026)
p. 3
“Return on equity increased by 414 bps and it stood at 20.42% as of 31st March 2026 when compared to 16.28% as of 31st March 2025”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Fee-based income: Rs 2732 crore (FY2026)
p. 3
“Fee-based income, there is an increase of 15.91% year-on-year basis and it stood at Rs 2732 crore when compared to Rs 2357 crore as of 31st March 2025”
Raghuram Mallela, page 3 of the filed PDF · View the filing
Cost to income ratio: 44.94% (FY2026)
p. 4
“cost to income came down by 220 bps and it stood at 44.94 as of 31st March 2026 when compared to 47.14 as of 31st March 2025”
Raghuram Mallela, page 4 of the filed PDF · View the filing
SMA percentage to total credit: 4.92% (March 2026)
p. 7
“as in March '26, it came down to 4.92%”
Ajay Kumar Srivastava, page 7 of the filed PDF · View the filing
ECL additional provision: Rs 1750 crore (as of Q4 FY2026)
p. 7
“right now, we are at 1750 crores additional provision in the balance sheet exclusively for taking care of ECL requirements”
Ajay Kumar Srivastava, page 7 of the filed PDF · View the filing
LCR: 151% (current)
p. 12
“As on yesterday the LCR is around 151% of the bank as on March '26 it was around 122-123%”
Ajay Kumar Srivastava, page 12 of the filed PDF · View the filing
MSME NPA: around 2.4% (current)
p. 12
“MSME, our NP percentage is 2 only, around 2, I think 2.4 or something”
Ajay Kumar Srivastava, page 12 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.
ECL total impact — more than 3000 crore cushion · by 1st April '27
stated firmly by Ajay Kumar Srivastava
p. 7
“By the time 1st April '27 comes, I think we will be having a cushion in the name of ECL itself, more than 3000 crores.”
Ajay Kumar Srivastava, page 7 of the filed PDF · View the filing
Treasury gains — next two quarters
stated conditionally by Ajay Kumar Srivastava
p. 8
“We do not see, I will say, huge gain from treasury for next two quarters because of uncertainty prevailing and because of geopolitical issues.”
Ajay Kumar Srivastava, page 8 of the filed PDF · View the filing
Overall industry credit growth — 14% to 16% · next three years
stated conditionally by Ajay Kumar Srivastava
p. 9
“We do hope that 14% to 15% to 16% growth for overall industry, not only for IOB, is very much feasible and we can do better than that.”
Ajay Kumar Srivastava, page 9 of the filed PDF · View the filing
Net interest margin — 3.30 to 3.35
stated as an aspiration by Ajay Kumar Srivastava
p. 12
“We expect to maintain at this range between 3.30 to 3.35.”
Ajay Kumar Srivastava, page 12 of the filed PDF · View the filing
Return on assets — above 1.20
stated firmly by Ajay Kumar Srivastava
p. 15
“our baseline is that ROA at any point of time should be above 1.20.”
Ajay Kumar Srivastava, page 15 of the filed PDF · View the filing
Overall growth — double digit
stated as an aspiration by Ajay Kumar Srivastava
p. 16
“we intend to maintain that consistency with handsome growth of double digit, I will say.”
Ajay Kumar Srivastava, page 16 of the filed PDF · View the filing
Credit growth via ECLGS 5.0 — 8,000 to 10,000 crore additional funding · valid up to March 27
stated conditionally by Ajay Kumar Srivastava
p. 8
“our broad assessment is that around 8,000 to 10,000 crores of additional funding can happen through this ECLS mode this is valid up to March 27 still almost in 11 months are there”
Ajay Kumar Srivastava, page 8 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 SMA percentage improved year on year and no West Asia related stress was seen, and ECL provisioning of 1750 crore was already made against an estimated 3000 crore total requirement.
Answered by Ajay Kumar Srivastava
Asked by Ashok Ajmera: Is there any stress emerging in SMA accounts, particularly due to the West Asia crisis, and is the bank comfortable with ECL provisioning?
p. 7
“So, SMA, we do not see any challenge per se. And regarding West Asia crisis also, we have so far not seen any stress in any of our existing accounts so far.”
Ajay Kumar Srivastava, page 7 of the filed PDF · View the filing
Management said they do not expect large treasury gains in the next two quarters due to geopolitical uncertainty.
Answered by Ajay Kumar Srivastava
Asked by Ashok Ajmera: What is the outlook for treasury income going forward given negative treasury performance this quarter?
p. 8
“We do not see, I will say, huge gain from treasury for next two quarters because of uncertainty prevailing and because of geopolitical issues.”
Ajay Kumar Srivastava, page 8 of the filed PDF · View the filing
Management estimated 25-30% of the portfolio would be eligible and that 8,000-10,000 crore of additional funding could occur under the scheme.
Answered by Ajay Kumar Srivastava
Asked by Ashok Ajmera: How much additional credit growth opportunity does ECLGS 5.0 present?
p. 8
“almost 25% to 30% of the portfolio, MSME and non-MSME, that will be eligible for this ECLGS 5.0 support”
Ajay Kumar Srivastava, page 8 of the filed PDF · View the filing
Management pointed to an internal three-year growth plan targeting 14-15% growth, supported by strong capital adequacy and internal accruals.
Answered by Ajay Kumar Srivastava
Asked by Namit Arora: How is the bank positioning itself for continued market share gains given competition from NBFCs and other banks?
p. 9
“We are having one internal study of next three years, what is going to the plan and where we want to be over next three years period.”
Ajay Kumar Srivastava, page 9 of the filed PDF · View the filing
Management described lending as inherently risky and pointed to declining slippage and NPA trends as evidence of effective risk mitigation.
Answered by Ajay Kumar Srivastava
Asked by Namit Arora: What is the bank's philosophy on risk management and operational risk following incidents at other lenders?
p. 9
“Our policy and philosophy both I will say very simple. Lending is a risky business.”
Ajay Kumar Srivastava, page 9 of the filed PDF · View the filing
Management confirmed recoveries have consistently exceeded slippages over the last three years, though full-year recovery targets have been moderated as the NPA stock declined.
Answered by Ajay Kumar Srivastava
Asked by Ramesh Bhojwani: Does the lower provisioning in March '26 signal confidence in accelerating recoveries from written-off and NPA accounts?
p. 10
“this recovery more than slippage is happening for last three years consistently. And going forward also, we are pretty sure that it will happen.”
Ajay Kumar Srivastava, page 10 of the filed PDF · View the filing
Management said the bank is aggressive in solar lending with multiple schemes at attractive terms and expects it to be a top-five lending priority this year.
Answered by Ajay Kumar Srivastava
Asked by Ramesh Bhojwani: How is the bank positioning itself in solar/renewable energy lending given government targets?
p. 10
“I will say that it is one of the top five important parameters for us going forward in which lending is going to happen in this year.”
Ajay Kumar Srivastava, page 10 of the filed PDF · View the filing
Management said most of the bank's agri book in Tamil Nadu and southern regions is gold-loan backed rather than pure crop loans, limiting NPA risk from poor monsoons.
Answered by Ajay Kumar Srivastava
Asked by Ramesh Bhojwani: Could weak monsoon forecasts pressure agri-advances and NPAs?
p. 11
“since jewel is available as security, we do not face over the years also, IOB in particular, we do not face any challenge in agriculture NPA.”
Ajay Kumar Srivastava, page 11 of the filed PDF · View the filing
Management explained no tax is currently payable due to accumulated losses despite shifting to the new tax regime, and noted past tax demands were more than offset by refunds.
Answered by Ajay Kumar Srivastava
Asked by Devansh Jani: What guidance can be given on the effective tax rate given volatility in tax provisions?
p. 11
“since we are having accumulated losses still in the balance sheet, so that tax is not payable.”
Ajay Kumar Srivastava, page 11 of the filed PDF · View the filing
Management said there is no regulatory prescription for CD ratio and LCR remains comfortable at around 151%, supporting continued credit growth.
Answered by Ajay Kumar Srivastava
Asked by Devansh Jani: Does the rising CD ratio pose liquidity stress risk?
p. 12
“So even if we are growing at 20% or 21% in credit side, we do not see any challenge on liquidity side.”
Ajay Kumar Srivastava, page 12 of the filed PDF · View the filing
Management said overseas NPAs are legacy accounts under litigation in foreign courts, with negligible fresh slippage in recent years.
Answered by Ajay Kumar Srivastava
Asked by Devansh Jani: What is the outlook for overseas NPAs given their disproportionate share of the NPA book?
p. 12
“they are legacy accounts very old ones because recent slippages last three years. There have not been many as far as slippage is concerned, whether domestic or overseas.”
Ajay Kumar Srivastava, page 12 of the filed PDF · View the filing
Management guided to maintaining NIM in the 3.30-3.35% range.
Answered by Ajay Kumar Srivastava
Asked by Devansh Jani: What is the NIM guidance going forward?
p. 12
“We expect to maintain at this range between 3.30 to 3.35.”
Ajay Kumar Srivastava, page 12 of the filed PDF · View the filing
Management said MSME NPA is around 2.4% and no material stress has emerged from the West Asia crisis, with ECLGS 5.0 expected to help further.
Answered by Ajay Kumar Srivastava
Asked: Is there stress in specific MSME segments due to geopolitical issues?
p. 12
“MSME, Last three years we have not seen any challenge in any portfolio as far as because of disturbance in West Asia.”
Ajay Kumar Srivastava, page 12 of the filed PDF · View the filing
Management said RAM will remain the priority given the bank's extensive branch network and processing efficiencies, while noting RAM itself is diversified.
Answered by Ajay Kumar Srivastava
Asked: Will the bank continue to prioritize RAM (Retail, Agri, MSME) lending or diversify?
p. 13
“No, RAM will be our priority going forward also. Retail, Agri, MSME”
Ajay Kumar Srivastava, page 13 of the filed PDF · View the filing
Management said corporate lending continues selectively where margins justify it, citing a 13,000 crore sanctioned pipeline, but prioritizes RAM for better margins.
Answered by Ajay Kumar Srivastava
Asked by Ashok Ajmera: Should the bank relook at corporate lending given rising RAM concentration?
p. 14
“Still, we are having 13,000 crores of pipeline, which is already sanctioned and in the process of disbursement.”
Ajay Kumar Srivastava, page 14 of the filed PDF · View the filing
Management said around 21-22% of retail loans are digitally sourced with delinquencies not materially different from branch-sourced loans.
Answered by Ajay Kumar Srivastava
Asked: What portion of retail loans is sourced fully digitally and how do delinquencies compare?
p. 14
“It should be around 21 to 22 percent.”
Ajay Kumar Srivastava, page 14 of the filed PDF · View the filing
Management confirmed fee-based income grew 15.63% for the full year, from 2418 to 2796 crore.
Answered by Ajay Kumar Srivastava
Asked: Has fee income grown year-on-year?
p. 14
“if you see full 12 months, from 2418 to 2796 crores, 15.63% growth is there.”
Ajay Kumar Srivastava, page 14 of the filed PDF · View the filing
Management said there is no formal internal target beyond a baseline that ROA should not fall below 1.20%.
Answered by Ajay Kumar Srivastava
Asked: Has the bank set internal ROE/ROA targets for the next three years?
p. 15
“No such target as it is, but the baseline is there that below this it should never come up.”
Ajay Kumar Srivastava, page 15 of the filed PDF · View the filing
Management said a QIP attempt was dropped last year due to the West Asia crisis but will be revisited this year.
Answered by Ajay Kumar Srivastava
Asked: Is there any plan to increase public float given low floating stock and valuations?
p. 15
“But this year again, we'll be back with that. So let us see.”
Ajay Kumar Srivastava, page 15 of the filed PDF · View the filing
Management and the IT GM described AI use in fraud monitoring, mule account detection, and robotic process automation as a full-fledged system rather than a pilot.
Answered by Ahamed Kabeer
Asked by Manoj Kale: How will AI affect the bank's growth and jobs going forward?
p. 15
“we have been doing this for our automation of robotic process automation wherein all our routine tasks are being automated”
Ahamed Kabeer, page 15 of the filed PDF · View the filing
Risks flagged
Uncertainty and geopolitical issues affecting treasury gains
p. 8
“We do not see, I will say, huge gain from treasury for next two quarters because of uncertainty prevailing and because of geopolitical issues.”
Ajay Kumar Srivastava, page 8 of the filed PDF · View the filing
Weak monsoon forecast could adversely impact agriculture advances
p. 11
“When monsoon is not good, naturally it will be having an adverse impact on agriculture.”
Ajay Kumar Srivastava, page 11 of the filed PDF · View the filing
Legacy overseas NPA accounts pending court resolution
p. 13
“All are legacy accounts of 2015, 2016, 2017, and those cases are at different stages in various courts.”
Ajay Kumar Srivastava, page 13 of the filed PDF · View the filing
Lending is inherently a risky business
p. 9
“Lending is a risky business.”
Ajay Kumar Srivastava, page 9 of the filed PDF · View the filing
Low public float constraining valuation float creation
p. 15
“That creating a float in the system, that is a challenge, and we are working on it.”
Ajay Kumar Srivastava, page 15 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.