Indian Overseas Bank

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Indian Overseas Bank trades at ₹33.9, in a downtrend and 90 weeks into that stage. That is −5.5% against its own 200-day average. It sits at 19% of a 52-week range of ₹32 to ₹41. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (12 weeks and counting).

Today the stock is in a downtrend — week 90 of stage 4, confirmed. At ₹33.9 it trades −5.5% versus its 200-day average and sits at 19% of its 52-week range (₹32–₹41).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +41% while the NIFTY 500 moved +280% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (12 weeks and counting; last ahead the week of 2026-05-29) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/BV sits at the 11th percentile of its own range.

Valuation For a bank we price the book, not the earnings: P/BV is what the market pays for each ₹1 of the bank's net worth. A bank below 1× book is priced below the value of what it owns, net of what it owes.

Indian Overseas Bank trades at 1.7× P/BV, near the bottom of its own range — cheaper only 11% of the time. Its long-run median P/BV is 2.2×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/BV of 1.7× is near the bottom of its own range — cheaper only 11% of the time, against a long-run median of 2.2× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: the net margin is the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year book value grew while the price moved −14.9% — price and book moved together, holding the multiple in its range.

The price move, decomposed: over 3y, of the +9.2%/yr price move, ~+14.0%/yr came from book-value growth and ~−4.8 pp from the multiple (compressing). The split is the honest approximate (price return minus book-value growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the book-value line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Indian Overseas Bank reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROE at 15.3% and holding. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

66.3/100 — rank 2 of 13 in Banks - PSU · 87% evidence confidence

Indian Overseas Bank scores 66.3 out of 100 against the 13 companies it is compared with in Banks - PSU, ranking 2. Acceleration candidate, not a confirmed leader: earnings are strong but sector-relative strength is -11.8% and the one-year return is -14.9%. Do not upgrade until sector-relative strength is above zero and another reported period confirms growth.

The four contributions add to the total exactly: 31.5 + 17 + 12.7 + 5.1 = 66.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if ROA rolls over or gross NPA rises while sector-relative strength deteriorates.

Revenue For a bank, revenue is everything the franchise earns — interest on the loan book plus fee and other income.

Indian Overseas Bank reported ₹8,778 Cr of income in the Jun 26 quarter, +18.8% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 3.1% a year. The last full year, FY26, came in at ₹31,896 Cr. The last four reported quarters add to ₹33,290 Cr.

Indian Overseas Bank reported ₹8,778 Cr of income in the Jun 26 quarter, +18.8% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 3.1% a year. The last full year, FY26, came in at ₹31,896 Cr. The last four reported quarters add to ₹33,290 Cr.

FY26 revenue came in at ₹31,896 Cr (+13.3% on the year), capping 10 years at 3.1% compound. The latest quarter (Jun 26) printed ₹8,778 Cr, +18.8% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +14.8% growth against the decade's 3.1% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +14.8% over the last 4 quarters against +15.0%/yr over the last 8 — stabilising; TTM profit +51.8% vs +45.6%/yr — accelerating.

→ Revenue grew — did the net margin hold as it scaled? Next: 19.5% this quarter (+3.6 pp YoY).

Net margin Net margin — what the bank keeps of every ₹100 of revenue after every cost, provision and tax. It is the cleanest single margin we can read for a lender.

Indian Overseas Bank's net margin is 19.5% in the Jun 26 quarter, +3.6 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 14 fiscal years the net margin has ranged −49.0% to 17.0%. The current quarter is running above every full year in that window.

Indian Overseas Bank's net margin is 19.5% in the Jun 26 quarter, +3.6 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 14 fiscal years the net margin has ranged −49.0% to 17.0%. The current quarter is running above every full year in that window.

The latest quarter's net margin is 19.5%, +3.6 pp against the same quarter a year ago. Across 14 fiscal years the net margin has ranged −49.0%–17.0%, and FY26's 17.0% is the top of that band — a record year.

Why: the numbers show the net margin move clearly, but the cost lines behind it sit below what we hold — so we state the move without inventing its driver.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

→ The net margin held — did that reach the bottom line? Next: profit +45.7% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Indian Overseas Bank earned ₹1,716 Cr of net profit in the Jun 26 quarter, +45.7% year on year. It is the 12th consecutive quarter of growth. Full-year FY26 profit was ₹5,418 Cr. That is 19.5% of the quarter's revenue. The same quarter a year earlier earned ₹1,178 Cr.

Indian Overseas Bank earned ₹1,716 Cr of net profit in the Jun 26 quarter, +45.7% year on year. It is the 12th consecutive quarter of growth. Full-year FY26 profit was ₹5,418 Cr. That is 19.5% of the quarter's revenue. The same quarter a year earlier earned ₹1,178 Cr.

Jun 26 profit was ₹1,716 Cr, +45.7% year on year — the 12th consecutive quarter of growth. On the full year, FY26 printed ₹5,418 Cr (+59.5%).

Why profit moved: revenue contributed +18.8% and the margin +3.6 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +53.2% vs revenue +14.8%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit is up — how clean is the loan book behind it? Next: gross NPA is 1.54%, 9 quarters better in a row.

Asset quality — the ladder Gross NPA is the slice of the loan book where repayments have stopped. Net NPA is what remains after the money already set aside against those loans. Falling is healing; rising is damage arriving.

Indian Overseas Bank's gross NPA is 1.54% of the loan book in Dec 25, down from 2.55% a year ago. Net of provisions already set aside, 0.24% remains. That is the 9th straight quarter of improvement. Across the 10 quarters held here the book has ranged 1.54% to 4.74%.

Dec 25: gross NPA at 1.54% and net NPA at 0.24%, against 2.55% / 0.42% a year ago. Over the 10 quarters we hold, the book's worst reading was 4.74% and its best is 1.54% — which is the current print. The ladder has now improved for 9 consecutive quarters.

The synthesis: profit growth at a bank is only as good as the book behind it, and this book is healing on a multi-quarter streak. A note on depth: quarterly provisioning detail is not in our numbers yet, so this ladder reads levels and trend, not the cost of the cleanup.

Why the ladder moved: recoveries, write-offs and slippages each play a part, and that split sits below what we hold — the numbers show the healing; the driver mix does not travel with them.

→ Behind a cleaner book — is the book itself still growing? Next: revenue grew +13.3% in FY26.

The loan book We read the loan book through revenue — when the book grows, revenue grows with it. It is a rough proxy, and we say so: rate moves and fee swings can shift it a few points in any one year.

Indian Overseas Bank's revenue grew +13.3% in FY26 to ₹31,896 Cr, so the book is growing. The latest quarter ran +18.8% year on year. The net margin on that income is 19.5%, +3.6 percentage points against a year ago. Interest income is a proxy for the book; rate moves can shift it a few points in any one year.

FY26 revenue was ₹31,896 Cr, +13.3% on the year, and the latest quarter ran +18.8% year on year. The net margin on that revenue is 19.5% this quarter (+3.6 pp YoY) — growth with a widening margin on it.

The synthesis: a lender compounds when the book grows while the margin holds and the loan book stays clean — gross NPA is the loan-quality read we carry here.

→ Does all of this actually earn its keep on equity? Next: ROE is 16%.

Returns on equity and assets Two numbers rate a bank: ROE — what it earns on shareholder money — and ROA — what it earns on everything it deploys. ROE above ~13–15% earns its keep; below that, growth builds book slowly.

Indian Overseas Bank earns a return on equity of 16% in FY26. Its trough over the ladder below was −52% in FY20. On the asset side every ₹100 of the balance sheet earned about ₹1.33, which is the return before leverage is applied.

FY26 ROE came in at 16%, recovered from a FY20 trough of −52%. On assets, the latest reading is about 1.33% — every ₹100 the bank deploys earns roughly ₹1.33 a year. That clears the bar a bank must beat for its book value to compound.

Why: the ROE ladder shows the move; the deposit-cost and provisioning drivers behind it sit below what we hold.

→ Who owns this bank, and are they adding or leaving? Next: Promoters cut 3.9 points over 8 quarters.

Debt

For a bank, borrowings are raw material, not a warning sign — solvency is read through the returns and the loan book. A manufacturer’s debt is a claim against its profits, so the debt-to-equity lens that works everywhere else misleads on a lender and is not applied here.

A manufacturer’s debt is a claim against its profits; a bank’s borrowings are its inventory — money taken in to be lent out. The debt lens that works everywhere else misleads here, so this page does not apply it. The solvency questions for a bank — is the loan book sound, is the equity earning — are read through the loan-book and returns sections above.

→ Who owns this, and are they adding or leaving? Next: Promoters cut 3.9 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 3.9 points of Indian Overseas Bank over 8 quarters, the biggest move on the register. That takes promoters to 92.4% of the company. Domestic institutions moved +3.0 points over the same window, to 4.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −3.9 points over 8 quarters to 92.4%; Domestic institutions: +3.0 points over 8 quarters to 4.3%; Foreign institutions: +0.4 points over 8 quarters to 0.5%.

🚨 Why the register moved: promoters drove it (−3.9 points), absorbed on the other side by domestic institutions (+3.0 points) — distribution into the market’s bid.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Indian Overseas Bank: the Z-score is omitted — it was built for manufacturers, not banks, and applying it here would be theatre. The Z-score was built for manufacturers and is not applied to banks and lenders, so solvency here is read from the capital and asset-quality lines instead.

The safety line in one sentence: the Z-score is omitted — it was built for manufacturers, not banks, and applying it here would be theatre.

Frequently asked questions