Indian Overseas Bank (IN:IOB)
:IOB
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Indian Overseas Bank
(IOB)
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Rating:58Neutral
Price Target:
₹36.00
▼(-3.36% Downside)
Action:Reiterated
Date:05/01/26
The score is primarily constrained by financial quality concerns—especially cash-flow volatility and the recent increase in leverage—despite strong profitability improvement. Technicals are modestly supportive but not decisively bullish, and valuation (P/E ~12.7) appears reasonable but lacks dividend-yield support due to missing data.
Positive Factors
Profitability recovery
A multi-year net income increase to ~54.2B demonstrates a durable earnings recovery and operational leverage. Sustained higher profits improve internal capital generation, support loan growth and provisioning capacity, and provide structural flexibility versus prior low-profit years.
Negative Factors
Cash-flow volatility
Large operating/free cash flow whipsaws reduce predictability of internal funding and complicate capital planning. Irregular cash generation can force reliance on wholesale funding or asset sales in stress, limiting the bank's ability to execute steady medium-term growth or capital return strategies.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability recovery
A multi-year net income increase to ~54.2B demonstrates a durable earnings recovery and operational leverage. Sustained higher profits improve internal capital generation, support loan growth and provisioning capacity, and provide structural flexibility versus prior low-profit years.
Read all positive factors
Indian Overseas Bank (IOB) vs. iShares MSCI India ETF (INDA)
Market Cap
₹673.79B
Dividend YieldN/A
Average Volume (3M)808.91K
Price to Earnings (P/E)12.6
Beta (1Y)1.43
Revenue Growth11.22%
EPS Growth57.64%
CountryIN
Employees21,148
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.30
Shares Outstanding19,256,590,000
10 Day Avg. Volume831,734
30 Day Avg. Volume808,907
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)1.69
Price to Sales (P/S)1.79
P/FCF Ratio3.46
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Indian Overseas Bank Business Overview & Revenue Model
Company Description
Established in Chennai, India, in 1937, Indian Overseas Bank provides a comprehensive suite of banking and financial services, operating both domestically and in select international markets. Its core activities are divided across distinct segment...
How the Company Makes Money
IOB primarily makes money through a mix of interest income and non-interest (fee) income, consistent with a traditional commercial bank model. (1) Net interest income (NII): The main revenue driver is the spread between interest earned on assets a...
Indian Overseas Bank Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
32
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 357.54B | 348.18B | 337.49B | 297.29B | 235.22B | 216.40B |
| Gross Profit | 168.18B | 146.63B | 165.04B | 155.02B | 123.76B | 112.20B |
| EBITDA | 51.06B | 67.89B | 37.91B | 30.02B | 23.64B | 18.82B |
| Net Income | 44.04B | 54.18B | 33.96B | 26.66B | 21.04B | 17.09B |
Balance Sheet | ||||||
| Total Assets | 4.32T | 4.73T | 3.95T | 3.52T | 3.13T | 2.99T |
| Cash, Cash Equivalents and Short-Term Investments | 235.12B | 252.23B | 212.20B | 188.15B | 208.21B | 369.51B |
| Total Debt | 464.33B | 516.03B | 402.82B | 233.87B | 208.04B | 30.71B |
| Total Liabilities | 3.98T | 4.36T | 3.62T | 3.24T | 2.89T | 2.76T |
| Stockholders Equity | 342.31B | 369.91B | 322.33B | 275.61B | 248.76B | 225.98B |
Cash Flow | ||||||
| Free Cash Flow | -248.21B | 180.41B | -235.81B | -14.84B | -161.66B | 54.83B |
| Operating Cash Flow | -243.43B | 186.87B | -229.78B | -11.19B | -155.84B | 55.39B |
| Investing Cash Flow | -4.66B | -713.25B | -5.79B | -3.59B | -5.60B | -492.94M |
| Financing Cash Flow | 271.01B | 566.41B | 259.61B | -5.28B | 127.49M | 223.40B |
Indian Overseas Bank Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ₹673.93B | 9.70 | ― | 2.60% | 15.57% | 21.57% | |
73 Outperform | ₹924.38B | 10.14 | ― | 2.08% | 4.62% | 20.74% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | ₹657.63B | 6.37 | ― | 2.87% | 6.51% | 7.94% | |
62 Neutral | ₹294.08B | 6.50 | ― | 1.58% | 7.29% | 10.25% | |
62 Neutral | ₹1.14T | 9.71 | ― | 2.07% | 8.72% | 3.93% | |
58 Neutral | ₹673.79B | 12.55 | ― | ― | 11.22% | 57.64% |
* Financial Sector Average
IN:IOB
Indian Overseas Bank
34.90
-3.26
-8.54%
IN:BANKINDIA
Bank of India
144.10
31.67
28.17%
IN:CENTRALBK
Central Bank of India
32.51
-4.94
-13.20%
IN:IDBI
IDBI Bank Limited
86.95
-5.69
-6.14%
IN:INDIANB
Indian Bank
843.40
235.49
38.74%
IN:MAHABANK
Bank of Maharashtra
88.42
35.74
67.83%
Indian Overseas Bank Corporate Events
Indian Overseas Bank Plans Non-Deal Roadshows With Institutional Investors
Mar 10, 2026
Indian Overseas Bank has announced that it will participate in a series of non-deal roadshows and institutional investor meetings starting from 13 March 2026, conducting one-to-one, in-person interactions with institutional investors. The bank emp...
Indian Overseas Bank Appoints New RBI Nominee Director to Its Board
Mar 3, 2026
Indian Overseas Bank has announced a change in its board composition following a central government notification under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970. The Reserve Bank of India has nominated retired Prin...
Indian Overseas Bank Faces Rs 766 Crore Tax Demand, Plans Appeal
Mar 3, 2026
Indian Overseas Bank has disclosed that it received a demand notice under Section 156 of the Income Tax Act, 1961 from the income tax authorities in Chennai, relating to the assessment year 2015-16. The notice follows an order giving effect to an ...
Indian Overseas Bank appoints Raghuram Mallela as Company Secretary and Compliance Officer
Feb 27, 2026
Indian Overseas Bank announced that its board has approved the appointment of Mr. Raghuram Mallela as Company Secretary and Compliance Officer with effect from February 27, 2026. The move strengthens the bank’s governance framework under SEB...
Fitch assigns BBB-/Stable global rating to Indian Overseas Bank
Feb 26, 2026
Indian Overseas Bank has received new global credit ratings from international agency Fitch Ratings, which assigned the bank a long-term issuer default rating of BBB- with a Stable outlook and a viability rating of bb. The bank also obtained a sho...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.