Indian Overseas Bank

Financial Services — Banks - Regional · NSE

₹31.02+₹0.28 (+0.91%)

DalalBaazaar Score

78 / 100

🟢 Good

Verdict

ATTRACTIVE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:51 pm

Understanding the Business

Company site ↗

The 60-second version of Indian Overseas Bank — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Indian Overseas Bank provides various banking products and services in India and internationally. It operates through Treasury Operations, Corporate/Wholesale Banking Operations, Retail Operations, and Other Banking Operations segments.

IndustryBanks - Regional

SectorFinancial Services

Employees21,034

Annual revenue₹18,418 Cr

How does it make money?

Turns over ₹18,418 Cr a year. Of every ₹100 of sales, about ₹29 reaches shareholders as profit. Each of its 21,034 employees supports ₹87.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹87.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are HDFC BANK LTD, ICICI BANK LTD., KOTAK MAHINDRA BANK LTD, AXIS BANK LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.8%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +49% while net margin moved +73% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+49%

Margin effect+73%

DalalBaazaar Score

78/ 100

Good

Weighted across six categories. Every point is explained below.

• Shareholders fund 7.8% of the balance sheet, which is within the normal range for a bank
• Capital adequacy, gross NPAs and provision coverage decide a lender's financial health, and none are available here — check the bank's own quarterly disclosure

Quality vs. Valuation

Company Quality

79/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

85/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

10.1x

3Y Median

27.8x

40 monthly readings · mean 31.3x · range 11.5x–59.9x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 64% below its 3y median of 27.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 40% below the peer median of 17.0x.

vs. its own history

Cheap

27.8x median over 40 months · -64%

vs. sector peers

Cheap

17.0x median of 4 peers · -40%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

0.27

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 8.5% to 14.6%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 64% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 40% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

No clear risk case emerges from the available numbers — which is not the same as there being none.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 14.2% CAGR
Latest reported year was 48.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 15%✓ 16.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 27.8x✓ 10.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 9 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹59,734 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

10.1x

Cheap

Cheap against the generic band

P/B Ratio

1.54x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.06

Profitable

Profitable on a per-share basis

ROE

16.5%

Strong

Strong capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

1.40x

Moderate

Moderate leverage

Revenue Growth (YoY)

48.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

45.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹4,134 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

34.5x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

ROA

1.3%

Weak

Assets generate little profit

Operating Margin

37.1%

Good

Healthy core-business profitability

Net Margin

36.6%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.29

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

31.3 / 32.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹12,376 Cr	₹15,502 Cr	₹16,504 Cr	₹18,418 Cr	+14.2%
PAT (Net Profit)	₹2,104 Cr	₹2,666 Cr	₹3,396 Cr	₹5,418 Cr	+37.1%
EPS	₹1.15	₹1.4	₹1.76	₹2.7	+32.9%
ROE	8.5%	9.7%	10.5%	14.6%	—
Total Debt	₹20,804 Cr	₹23,387 Cr	₹40,282 Cr	₹51,603 Cr	+35.4%
Free Cash Flow	-₹14,237 Cr	-₹1,484 Cr	₹2,044 Cr	₹4,134 Cr	—

🟢 Revenue has grown at 14.2% a year over 3 years.

🟢 PAT (Net Profit) has grown at 37.1% a year over 3 years.

🟢 EPS has grown at 32.9% a year over 3 years.

🟢 ROE has risen from 8.5% to 14.6% over 3 years (+6.2 pts).

🔴 Total Debt has grown at 35.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹14,237 Cr to ₹4,134 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4.73 L Cr

Total Liabilities

₹4.36 L Cr

Cash & Equivalents

₹25,223 Cr

Operating Cash Flow

₹4,780 Cr

Capex

-₹646 Cr

Shareholding (proxy)

Institutional Holding

4.3%

Insider Holding

92.4%

Corporate Actions

Ex-Dividend Date

19 Jun 2014

Peer Comparison

Company	P/E	ROE
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
KOTAK MAHINDRA BANK LTD	21.9x	11.2%
AXIS BANK LIMITED	14.5x	13.4%

Recent News

2 mixed4 general

Indian Overseas Bank (IOB) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Indian Overseas Bank Share Price update after 2.4% gain

Univest, 05 Oct

Indian Overseas Bank (IOB.NS) Slides 1.77% to ₹30.48 as PSU Bank Counter Tests Near-Term Support - Fair Value Gap

https://www.siam.in/, 08 Oct

Indian Overseas Bank raises lending rates by 5 bps across six tenors from October 15

CNBC TV18, 12 Oct

Canara Bank stock jumps 5% post Q2 results

Business Standard, 14 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Indian Overseas Bank share price rise 3% after Q1 results 2026. Do you own?

Livemint, 20 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation · Risk

MiddlingFinancial Health

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 3 tripwires holding · see Key things to watch ↑