Indian Overseas Bank
NSE: IOBIndian Overseas Bank: A 30-second snapshot
Indian Overseas Bank (IOB) is a Chennai-headquartered public-sector bank trading at ₹33.79, below its 50-DMA (₹33.93) and 200-DMA (₹36.67), with a 52-week drawdown of 21.05%. FY26 net profit was reported at ₹5,200 crore (+56% YoY), and Q4 standalone profit rose 43% YoY to ₹1,505 crore. The stock carries a PE of 12.02 and ROE of 15.65%, ranking lowest-PE and highest quality score (66) among the 6 Banking peers in this dataset.
P/E
12.0
Forward P/E
—
ROE
+15.7%
Debt / Equity
—
Profit Margin
+37.5%
Div. Yield
—
5Y ROE > 15%
0/5
5Y FCF > 0
2/5
Quality
59/100
News
8 headlines · 4 positive · 1 negative
IOB profit up 56% at Rs 5,200 crore in FY26 - The Times of India
The Times of India
Indian Overseas Bank Q4 Results: Lower provisions aid profit, asset quality improves - CNBC TV18
CNBC TV18
IOB's net profit crosses ₹5,000-crore mark in FY26 - BusinessLine
BusinessLine
Indian Overseas Bank Q4 results: Net profit rises 43% YoY to ₹1,505 crore, NII up 11% - Mint
Mint
Plan is to front-load ECL related provisions: Indian Overseas Bank MD & CEO - Business Standard
Business Standard
Recent context
- ·IOB reported Q4 FY26 net profit of ₹1,505 crore, up 43% YoY, with the full-year figure crossing ₹5,200 crore for the first time; lower provisions were cited as a key driver alongside asset quality improvement.
- ·Management indicated a plan to front-load ECL (Expected Credit Loss) related provisions, signalling a proactive approach to the upcoming RBI-mandated ECL provisioning framework transition.
- ·News flow over the past 30 days was 8 articles with 4 positive and 1 negative, skewed toward the Q4 earnings beat; no adverse regulatory or governance headlines were present in this window.
Strengths
- +Lowest PE among 6 Banking peers at 12.02, with sector comparables ranging from 14.74 (Axis Bank) to 68.47 (HDFC Life), placing IOB at a significant relative valuation discount.
- +Earnings growth of 39.7% over 5 years is the highest in the peer group; FY26 net profit of ₹5,200 crore marks the first time the bank crossed ₹5,000 crore in annual profit.
- +Quality score of 66 ranks 1st of 6 peers (next highest: Axis Bank and Bajaj Finance at 53), and profit margin of 37.49% is notable for a public-sector lender.
- +Asset quality improvement was cited in Q4 results coverage, with lower provisioning contributing to profit growth alongside NII growth of 11% YoY.
Weaknesses
- −Price has declined 9.89% over 12 months and 4.68% over 3 months, trading below both the 50-DMA and 200-DMA — a configuration that has persisted for an extended period given the 21.05% drawdown from the 52-week high.
- −Fundamental consistency score is 39/100 and ROE years historically above 15 is 0, meaning the current 15.65% ROE is not reflected in the multi-year track record used to compute persistence metrics.
- −Debt trend is classified as rising with only 2 FCF-positive years recorded; public-sector banks characteristically carry high leverage, but the rising debt trend warrants monitoring against capital adequacy ratios.
- −Revenue growth over 5 years is 1.9%, a sharp contrast to earnings growth of 39.7%, indicating profitability gains have been driven largely by margin expansion and provisioning reduction rather than top-line volume growth.
Open questions
- ?Is the recent earnings growth driven by a structural improvement in the loan book and NIM, or primarily by a one-time decline in credit costs and provisioning reversal?
- ?Given that revenue growth over 5 years is only 1.9% while earnings grew 39.7%, how sustainable is the profitability trajectory if NPA recoveries and provisioning tailwinds normalise?
- ?How does IOB's capital adequacy ratio and tier-1 capital position compare to peers after the planned front-loading of ECL provisions flagged by management?
- ?Does the 21% drawdown from the 52-week high reflect broader public-sector bank sentiment, a specific IOB overhang, or both — and what would resolve the divergence from improving earnings fundamentals?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| IOB | Indian Overseas BankYou're viewing | 12.0 | +15.7% | 66 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.8 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.4 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹33.79
SMA 50
₹33.93
SMA 200
₹36.67
RSI (14)
42.7 (neutral)
From 52w high
-21.1%
1Y return
-9.9%
3M return
-4.7%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumPrice at ₹33.79 is below both the 50-DMA (₹33.93) and 200-DMA (₹36.67), with a 52-week drawdown of 21.05% and a 1-year price decline of 9.89%.
- mediumFundamental consistency score is 39/100 and ROE years above 15 is 0 out of the available history, indicating the currently reported ROE of 15.65% lacks multi-year precedent.
- mediumDebt trend is classified as rising and FCF-positive years total only 2, reflecting limited and intermittent free cash flow generation for a public-sector bank.
- lowPeer priceChange1Y data is null for all 5 Banking comparables, limiting price-performance benchmarking against sector peers.
Cross-section contradictions
- IOB ranks 1st of 6 peers on both PE (lowest at 12.02) and quality score (66), and reported earnings growth of 39.7% over 5 years and Q4 net profit up 43% YoY, yet the stock is down 9.89% over 12 months and sits 21.05% below its 52-week high — no single news catalyst explains the divergence.
- FY26 profit crossed ₹5,200 crore (+56% YoY) per recent headlines, while the fundamental persistence data shows 0 ROE years above 15 historically and a consistency score of 39/100, suggesting recent earnings improvement may not yet reflect in longer-term quality metrics.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days