{"id":181640,"date":"2026-04-21T13:00:08","date_gmt":"2026-04-21T17:00:08","guid":{"rendered":"https:\/\/alphastreet.com\/india\/indian-overseas-bank-iob-q3-2026-earnings-call-transcript\/"},"modified":"2026-04-21T13:00:08","modified_gmt":"2026-04-21T17:00:08","slug":"indian-overseas-bank-iob-q3-2026-earnings-call-transcript","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/indian-overseas-bank-iob-q3-2026-earnings-call-transcript\/","title":{"rendered":"Indian Overseas Bank (IOB) Q3 2026 Earnings Call Transcript"},"content":{"rendered":"

Note:<\/strong> This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.<\/em><\/p>\n

Indian Overseas Bank (NSE: IOB) Q3 2026 Earnings Call dated Jan. 14, 2026<\/span><\/strong><\/p>\n

Corporate Participants:<\/h2>\n

Sonali Pandey<\/strong> \u2014 Investor Relations<\/em><\/p>\n

Ajay Kumar Srivastava<\/strong> \u2014 Managing Director and CEO<\/em><\/p>\n

Analysts:<\/h2>\n

Ashok Ajmera<\/strong> \u2014 Analyst<\/em><\/p>\n

Presentation:<\/h2>\n

Operator<\/strong><\/p>\n

Ladies and gentlemen, good day and welcome to the earnings conference call of Indian Overseas bank arranged by Veritas Reputation pr. At this moment all participant lines are in listen only mode and later we will conduct a question and answer session. At that time if you have a question please press star and one on your touchstone keypad. Please note that this conference is being recorded. I now hand the conference over to Mr. Nali Pandey from Veritas Reputation PR. Thank you and over to you.<\/p>\n

Sonali Pandey<\/strong> \u2014 Investor Relations<\/em><\/p>\n

Good evening and welcome to Indian Overseas Bank Conference call to discuss our financial Results for Quarter 3 FY 2526 ended 12-31-2025. Indian Overseas bank iovish headquartered in Chennai continues to strengthen its presence with over 3,438 branches with around 3,622 ATMs and 9,041 business correspondents across India. IOB also provides services in four countries Singapore, Hong Kong, Thailand and Sri Lanka. With a trust of 41 million active customers and banks only. Our comprehensive suite of services spans personal, corporate and agricultural banking along with credit cards, loans and insurance products.<\/p>\n

Our financial results are available on our website and stock exchange platform. Before we proceed, please note that today’s discussion may include forward looking statements subject to risks and uncertainties that could impact future outcomes. We encourage you to consider these factors when evaluating our performance. Joining us today are Shri Azay Kumar Srivastava Managing Director and CEO Sri Joydeep Duttaroy Executive Director Sri Naraj Team Executive Director. We will begin with an overview of our quarter fee performance followed by a Q and a session.<\/p>\n

Now I invite Chief Finance bank to present the financial highlights. Over to you Sir.<\/p>\n

Ajay Kumar Srivastava<\/strong> \u2014 Managing Director and CEO<\/em><\/p>\n

Thank you Mr. Mani. Good evening to all. I am pleased to present the overview of the bank’s performance during the quarter and nine months ending on 31st December 2025. It is a proud moment for the bank. Today that bank has reached a new milestone by reaching all time high quarterly net profit of 1365 crore for this quarter we say 56.18% year on year increase. Regarding the performance of the bank for nine months ended 31st December 2025 bank has achieved the business of 6.44,276 crore. Recording year on year growth of 18.71%.<\/p>\n

GATA also has increased to 1,42,676 crore and it is recorded at 40.85% for this 31st December 2025. We are able to manage more than 40% for this quarter total deposit growth achieved at 3.49,302 crore with a growth rate of 14.48%. Growth advances year on year basis it has increased to 24.13% reaching to 2.94,974 crores against 2.37,632 crore last year. 31 December bank has shown the operating profit of 2,603 crore as a record and it is over another growth of 14.87 crore. Based on the last year performance, net profit of the bank has increased to increased by 491 crores and reached to 1365 crores as of December 2025 as compared to 874 crores during December 2024, recording a year on year growth of 56.18 percentage PCR provision coverage ratio to 97.49% from 97.07% last year.<\/p>\n

Capital net efficacy ratio it Is stood at 16.30% against the earlier it was 17% now as per unity requirement it was 11.50% so we had achieved the so it is 16.30%<\/p>\n

Ashok Ajmera<\/strong> \u2014 Analyst<\/em><\/p>\n

NIM again we have recorded the figure of 3.32% continuously it is growing, last time it was 3.21%. The CP ratio of the<\/p>\n

Ajay Kumar Srivastava<\/strong> \u2014 Managing Director and CEO<\/em><\/p>\n

Bank is increased to 84.45% and with regard to NPA management gross NPA reduced from 6071 crore to 4530 crores year on year basis and net NPA reduced to 708 crore from 976 crore last year. GNPA ratio it has come down to 1.454% from 2.55% last year. Similarly net NPA ratio has been reduced by 18 deals to 0.42% on December 2024 to 0.24% in December 2025. Philippe ratio is contained at 0.11% during this quarter and with respect to valuation there is a significant improvement on the return of assets that has increased to 1.28% for quarter ended 31st December 2025.<\/p>\n

With regard to book value of shares it Is improved to 13 rupees 90% as on December 2025 while same was 10.66 only during December 2024 there is a significant inflation is turn on equity with 312 gifts year on year. Currently ROE is 20.98% whereas last time it was 17.86% earning per share EPS on 31st December 2025 is 0.71 which is improved by 54% from 0.46 for the last December 2024 quarter. This is all about the performance of<\/p>\n

Ashok Ajmera<\/strong> \u2014 Analyst<\/em><\/p>\n

Our bank which I want to present to you and I request to proce.<\/p>\n

Questions and Answers:<\/h2>\n

Operator<\/strong><\/p>\n

Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you you may press star and two participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Ashok Ajmera from Achcom Global. Please go ahead.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Thank you for this opportunity and asking the the first question. In fact my question has a combination of questions and observations and some clarification. So compliment to you Sir Nishivat Jaideep Jai Dandar Ji and the entire management team of the Indian Overseas bank for the yet another good quarter, rather the better quarter, last quarter of dividends. What is actually happening to note is that the bank business has grown tremendously, especially the credit in the three quarter itself it has gone up by about 18% growth and I’m sure the way the last quarter has done 6.12%.<\/p>\n

You will end the year by 24, 25% of the credit growth which will be one of the highest or other the highest in the entire PSV space or the banking space. So for my compliments to you for the same sir. Having said this sir, I got some rather some clarification that now with this kind of credit growth our CD ratio has already come to the top end like 84.45%. And our CRR has proportionately have come down to 16.30%. So with this growth and this kind of CD ratio already achieved, how do you see that growth momentum to continue?<\/p>\n

I mean what are the plans for that to maintain the CRAR also on the higher numbers. So this is my just a first question and if you want I can speak others also. But if you can answer this and then I can take the further questions.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Yes, good afternoon. Thank you so much. I will be replying to all these three observations first. So credit growth of course we have grown year on year. It is 20% December over December if you see and over March of course is right. So maybe here we will be ending the year with a growth of around 24 to 25%. That is what we are also expecting. And this credit growth is coming from all sectors. Retail, agri, MSME and a little bit of corporate also. So the next point is CD ratio. You are talking CD ratio 84%.<\/p>\n

Whatever he is watching that includes overseas centers. If you exclude that overseas centers then CD ratio is around 81% domestic. Because overseas overseas center there is no concept of discussion. So it is around 81.81.18 or something. CD ratio which is very much within the region manageable thing. And the second part which you have not pointed out is that retail term deposit we have grown by 16% SV. We have grown by more than 11%. So deposit growth is also happening to that extent. And third party is that third party is that there is a concept of LCR which RBI monitors on a daily basis which for all banks is mandatory.<\/p>\n

Pegged at 100% it should be there. We are consistently maintaining it around 120% plus. On the 31st of December it was around 127. Yesterday it was 122. So there is no issue on the aspect of liquidity. So CD ratio is 81. LCR is more than 181. 82, 121, 122. So that aspect is very well taken care of. And going forward also it will be maintained like this. The third part of CRA, CRA 16.30 One aspect is that it is also it is still very healthy against mandatory requirement of 11.50. And having said that this 3\/4 net profit of 3700 crores is not factored into capital so far.<\/p>\n

Yeah.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Yes sir. It<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Gets factored at the end of the year. If this 3700 cross is higher than the CR as on 31st December it is around 18.40.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

No cause of concern on the aspect of CR also sir. So all bases are fully covered. Strategy is in place and we are successfully implementing it.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Yes sir. Fine. Well taken sir. And you properly explained the whole thing. Now coming to this. This our profitability. Yes. Because of the good credit growth and the good business growth we have grown our operating profit also this quarter. Also our operating profit is 2603 as compared to the last quarter of 2400 crore. And but for only 2 crore rupees tax provision. Because the other provision this year has become. This quarter has become very high. If you look at the overall provisions it has gone up to 1236 crore compared to 672 crore.<\/p>\n

So but for this major reduction in the tax provision which Is come down to 2 crore from 501 crore our net profit would not have been. Would not have remained same or rather it would have gone down than the last quarter. So what do you have to say sir on this? Number one the the higher provision which where the other Provision component is 928 crore as compared to 552 crore in the last quarter. So what is this extra other provision? And secondly why the tax provision is only 2 crore.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

So sir two, three things are there in this. First thing this provision, whatever number you are talking that is inclusive of around 800 crores of additional standard provision which was not needed but we have created it as a buffer. In addition to this 800. Sir we have. We have done forward looking 1500 crores of ECL provision in the name of ECL. That 1500 course also we have done that is away from whatever numbers we have given. The 1500 course is one part that is ECL 800 crores we have given additional provision standard provision.<\/p>\n

Just as a question. And third part is so far we were under DTA sir. DTA was around 2900 crores and bank was having is having accumulated losses. So this tax was not applicable to that extent. And in this December quarter the DT has been made nil.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

900 crore DTA was there, that has been made nil. And as a consequence of that sir we have new tax regime. In previous conferences if you remember you have been asking this question when banking to move to new tax regime. So December we have moved sir.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay. I mean that’s a great great thing. I might give the benefit to the bank in the coming years also accordingly of the production in the new as per the new tax regime. Sir, one small observation that the salary amount has gone up by about I think 175 crore this quarter as compared to last. So whether this new labor code which has come in and the gratuity liability have you factored that into this and because of that it has gone up. Or. The load is yet to be passed on?<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

No, that is yet to be figured out sir and we’ll start working on that. So this 175 crore does not reflect that. This reflects 160 crores of additional surplus provision we have made towards pension and gratuity liabilities which<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Are not<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Supposed to be made. But since we are available. So we have made 160 crores additional provision on HR regarding this. So that is how 175 crores you are looking at. But actually it is 15 crores increase only.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Sir this quarter we also Observed.<\/p>\n

Operator<\/strong><\/p>\n

Please rejoin. Just. Just last<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

One. Last one. Just last one. Okay. Sir, in this quarter we have observed that asset quality has further improved. Rather the gross NP has you know gone down drastically from 1.83 to 1.54. And that is because of the little higher write off of 601 crore against 108 crore in the last quarter. So whether this write off things is overall it will continue in the next quarter also so as to bring down the gross NPA further substantially to 1.25 or so. And making it a very very sound healthy balance sheet from the point of view of the credit.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

So sir, technical life of is only 500 crores. And it is done based on the requirements. And if you look at recovery so recovery we have around 890 crores. And recovery has been consistently we are doing more than slippages for last many many quarters. So as some total of this you talked about. Gnpa, GNP has reduced its total of recovery plus technical write off plus whatever OTS we have sanctioned. A part of write off has come from that+ ARC sale. All those things have happened. And right now we are at 1.54.<\/p>\n

And we expect that another 5 to 7 bips it can reduce in this quarter. In Q4.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

What is our total? Return of book, sir. Return of book amount. Outstanding amount<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Around 23,000 crore, sir.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay sir, thank you very much for this round of questioning and very elaborate explanation. If time permits I will come back again. Sir.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Yes, most welcome. Thank you. And<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

All the best to you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. We take the next question from the line of Binaki Banerjee from AUM Capital Private Limited. Please go ahead.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Good evening sir. And thanks for the opportunity. And congrats for the great set of numbers. Sir, actually coming to the page 16 of your presentation regarding that advances regarding this corporate advances of about rupees fifty one thousand crores or so. Can you please give us a breakup of this to which sector or industry this corporate this advances have been given.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

It is a mixture of PSU private players and plus NBFCs.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay sir. And sir, actually compare it to the other other segments like retail, agri and MSME which have shown a double digit growth. Why is it the corporate loan growth is languishing in single figures?<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

No, it’s not languishing. It’s. It’s. I will say that it’s a well thought out call. Part of the strategy.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

See you have to understand the dynamics. We are having 3400 branches.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

All<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

These 3400 branches can do retail, agriculture and MSME.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

20 branches across the geography.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

So since<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Number of branches doing retail agri MSME is more. So naturally retail aggregate MSME happens more<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

And<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

There we get good rate of interest. Also risk is spread out<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

And<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Capital requirement is lower. So that becomes priority. Of course RAM and all my branches can do. We are very selective about onboarding customers. First thing is of course good corporate, good rating. And second part is that we should be able to get proper pricing.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay. We<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Are not in the business of lending at 6% or six and a half. So wherever we are getting good value, we are lending there only. And that is how we are managing corporate. All along we have been RAM sector has been around 75 to 76% of our total portfolio. And corporate continues to be around 23, 24, 25% and we intend to maintain.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay. And last one, just a hypothetical question. So your last dividend declared was quite a number of few years back. Because understanding that you are under prompt corrective action. So. So now that you have come out of this, can we expect dividends in the coming time?<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Yeah. So we came out of PC in 2021. September 2021. Long back. So PCA story is very very old.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

And next year of course next CNC and year we will be in a position to give dividend. Of course.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

That’s all for my end and thank you. And all the best for the future.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. We take the next question from the line of Samrat Jadav from Prosperity Wealth Advisor. Please go ahead.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Good evening and congratulations on a good set of numbers. Two questions. One is like our overseas gross NPA remains around 8 and a half percent on higher side elevated. Basically. So any idea or a roadmap or timeline for this book how you. How your management are covering it.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Okay. So 8.5% overseas. See, overseas we are supposed to be guided by local regulations. Do not have that processi or DRT or those. Those things are not available to be implemented there. The only thing which happens is through the courts. And in all these cases, cases have been filed and they are in the process. Whatever the securities were available that have already been sold with the position of the court. And we have appropriate the money so. It will come down. But you know for the decision how much time it takes, timeline.<\/p>\n

But of course all. All cases are under recovery process.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay. And what percentage of our new retail loans are now digitally sourced?<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Around 13 to 14%.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay, that’s all from my side. Thank you.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. We take the next question from the Line of nitin s under my from Aurum Capital. Please go ahead.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Yeah. Thank you for the opportunity. Am I audible?<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Yes please.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Yes. So our CASA percentage was coming down on a year on year basis. Though there is some marginal improvement on a Q OQ basis. So is there any challenge that we are facing over there? And how does the bank plan to. Balance aggressive credit growth with deposit mobilization?<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Sir, two things we have to understand here. CASA consists of two parts, ka and sa. And if you look at sa, year on year we have grown by 11.4%. In absolute terms it is 11,910 crores to start. Growth has been in double digit growth is happening Current account because of its nature of the product. Money comes and goes. And as a matter of prudence we are not encouraging those transactions which happen for only one day, last day of the quarter. So that we have purposely not encouraged. And that is how current account we have not been able to grow to that extent.<\/p>\n

Of course if you wanted you could have grown for one day and numbers it would have been shown here. But those numbers have not been real estate. So SAI is growing and because of that CASA growth is from 11.4 it has come down to 7.8% growth is there second part CASA percentage you are talking about. CASA percentage is a game of numerator and denominator. If my total deposit, my retail term deposit is growing at a faster pace then actually percentage will move. So my retail term deposit has grown by 16.3% year on year.<\/p>\n

In absolute terms it is almost 25,000 crores. To that extent SB and current has not grown. Of course they have grown. SBA has grown by 12,000 crores. So absolute term growth is there. But in percentage terms since retail counterbodies comes into play which has grown at a higher rate. So that is how percentage has come down to 40.85% global. But domestic, if you see overseas branches do not have CASA deposit concept. The CASA domestic is 41.29. And only three public sector banks in the system are having CASA percentage above 40%.<\/p>\n

And we are one of them. And we have been consistently maintaining CASA percentage above 40. 41.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

So do you see that henceforth the CASA percentage could come down as the growth will happen and as you are suggesting because of the challenges,<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Certainly not. Because sb you can see we have grown substantially. Very handsome growth of 11.4%. I think that will be one of the best in the system current account, we are working on it. And maybe in this quarter we can show good growth in current account. Also so I do not see that KATA percentage going below 41%. Of course we cannot aspire to go below beyond 45%. But we will be very successful in maintaining CASA percentage above 41.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

And my second question is about, you know, technological and operational strategies that are driving the bank’s digital transformation goals. So what are those specific. If you can elaborate on that front and how we are implementing that, have we hired new consultants or how much investments we are making on those lines. What is the vision of the bank on that? If you can elaborate on those points.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Yeah. So I’ll start from budget. So every year expenditure on IT infrastructure goes on increasing. Last year it was 1200 crores. This year we have taken approval of board for 1600 crores, both capital and revenue expenditure. And almost 70% of that has been spent also. And lot of regular upgradation happens in IT infrastructure. Recently we have done the entire core banking modernization with a survival expenditure of around 600 crores that we call tech replay. That has happened. State of the art data center we have created and core network infrastructure upgradation has happened.<\/p>\n

So lot many things. Branch network modernization has happened lot many things in IT area. IT infrastructure, it’s an ongoing process and that is one of the topmost priorities of the bank which ensure that IT infrastructure is matching with whatever is needed to be done for running the bank smoothly and to compete at that level. So we are, we are at that place at that level and we get full support of our board also for this and IT infrastructure. I can say that it is one of the best in the system.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

My next and final quick question is about the competition with private sector bank. In general banks. There is a complete resurgence and they are grabbing the business compared to private sector banks. So do you also see the similar kind of thing? Are we grabbing the business from private sector banks or our growth itself is organic and we are growing naturally and they are unable to capture that business because of the changes which have happened in the banking sector, especially the public sector bank.<\/p>\n

Can you shed some light on that?<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Oh yeah. It is a fact that. We are. Grabbing business from private sector. Many of their clients are moving to public sector banks. Many of the clients who left, I will talk about IOB four or five years back. They all are trying to come back. Many of them are come back also. And because of lots of improvement in the efficiency and IT infrastructure and lots of products, public sector banks, the total space public sector, they are giving, I will say good banking experience to the general public. And that is how things are happening and the overall image of public sector banks as a doer, as decision maker, as actually delivering the things that has improved a lot.<\/p>\n

Got it.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. We take the next question from the line of Ashok Ajmera from Adjcon Global. Please go ahead.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Thanks for giving the second opportunity. Sir. Since I got the time now one thing is there that our bank Gargon holding in our bank is still very high at I think 92% or so in spite of the OFS and the QIP which has been done in the recent past. So in order to dilute and bring IT within the SEBI guidelines of 75% I think almost about 12,000 crore rupees of dilution will have to be done at the current market price. So what, what are the plans on that front? Is it going to be OFS only or a QIP kind of a thing?<\/p>\n

What plans the board has approved and are there in pipeline for you to execute to bring down the government stake in the bank.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

So sir, right now government of India holding is 92.44%.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Yes.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

A year back February 25th used to be 96% plus. So from February 25th till December we reduce it by almost to 92.44. We are having an approval of 4000 crores of capital regime through QIP we have got all the approvals and in this quarter we are going to raise this 4000 crores. Maybe February or maybe in March. The entire process is going on whatever is needed to be done. And if that 4000 crores with that this 92.44 will further get reduced by 4%. So in one year you can. One year you can see that from last March to this March the holding from 96 it will come down to around 9 to around 88.<\/p>\n

And next year again we will plan and we do hope that it will reduce further as per the requirement.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

All right. So it will be in future it may be a combination of OFS and QIP again isn’t it like maybe after this IP of 4000 crore again government might go for the price is good in the market. Okay sir. Now sir, a little bit of data points on this gold loan front. What is the combination of total gold loan book between agree and non agree loan and what kind of approximate yield which we are getting on the gold loan? Agree and non agree.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Yield is around 8.5 to 9%. There are different products, different schemes and there are certain products where it is less than 8.25 also and retail and Aggie major part of the retail Gold on whatever is happening that is almost 50 to 60% is for agriculture purposes. And balance gets distributed amongst MSME and retail.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay. All right, sir. Okay, sir. Thank you very much.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Ladies and gentlemen. If you wish to ask a question please press star and 1. We take the next question from the line of Bimal Panchal from Bimal Panchal and Associates. Please go ahead.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Yeah. Good evening sir. My name is Bimal Panchal and congratulations for the one of the best results in the history of the bank. A lot of questions has been asked by previous participants. I’m not repeating my one question is that there is been frequent news appears that all PSU banks will be consolidated into at the most four or five banks. So any communications from the government regarding this<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

And<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Because of this any. Is there been any instructions to hold on branch expansions or fundraising? Is there any break on this? Thank you, sir.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Two things. One thing is that this year we are recruiting around 1200 people. And 400 people have recently onboarded remaining will onboard in another 3, 4, 5 months. This year we have already opened 120 branches. And another around 180 are in the pipeline which will be open over next three to six months. So expansion plan, recruitment plans, everything is going as per the business plan which we initiate in the beginning of the year is going on as usual. And the second part is merger and consolidation.<\/p>\n

We do not have any information either verbal or written. Nothing is available with us.<\/p>\n

Operator<\/strong><\/p>\n

Okay. Right.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Thank you very much, sir. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. We take the next question from the line of Rana Aryan from Vlight Ariana Holdings. Please go ahead.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Yeah. Congratulations to the team IOB for the fantastic results. My question is around loan book granularity. And so the background is PSU banks historically faced volatility due to large ticket corporate exposures even when headline GMP numbers look. So the question is how has the top 20 or top 50 borrower concentration evolved and what internal thresholds guide incremental exposure decisions today.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

So sir, there are two aspects. One is that the total credit consists of retail, agriculture, MSME and corporate.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay. If<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

You look at banks the credit portfolio closely you will see that all these four are equally distributed to around 25%. Between 25 to 30 for retail, agriculture and MSME constitute around 76% corporately around 23 to 24%. And we intend to maintain at that level only. And whatever corporate existing accounts are there with us or whatever we have onboarded all those accounts are absolutely healthy, standard running and absolutely regular.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay, so you said corporate 25 and SME is about 70. Right.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Ram, retail, agriculture, MSME. All three taken together is around 76 to 76%.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay. All right, all right. So my second question is on Philippines. Philippines across the system have been benign over recent quarters particularly reflecting favorable micro conditions. But so what earning warning indicators is the bank tracking to sort of differentize between sectoral sorry structural asset quality improvement and cyclical low slippages slip.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

So here also two aspects. One thing is that if you look at the slippages number over last two years you will see slippage ratio around 0.11, 0.12 like that<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Quarterly<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Is around 250 to 300 crores over a credit base of almost 3 lakh crore.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

All right.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Consistently slippage ratio at this level which leads us, which should lead you to believe that asset quality is good and being properly monitored and reviewed. Another part of your question is EWS earning warning signals that is already automated. Almost 144 different scenarios have been put in the system. Extra software and early warning signals are getting generated on a regular basis and those alerts are acted upon by the teams which have been put for this action activity. So it’s, it works like a well oiled machinery and that is how slippages control has been there consistently over last two years or more than two years.<\/p>\n

And accordingly it will continue like this only in future also.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Correct, Correct.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

One more thing. There have not been any corporate slippage over last two years. Two and a half years.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Absolutely. All right. So another question is I have on valuation RE rating triggers. So like Phu banks often trade at a discount despite improved fundamentals, you know. So my question is what two or three exclusion milestones would the IV management views as critical for a sustained valuation re rating given the stock resistance?<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Our, our job is to give good number so consistent growth and consistently quarter on quarter. Whatever is supposed to grow, it has grown. Whatever is supposed to come down, it is coming down. So we, we are very consistent in whatever we do. And beyond that it is market dynamics on that we do not have any control. All<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Right,<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

All<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Right,<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

All<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Right. Thank you so much. Thank you so much. And all the best for the next quarters. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. We take the next question from the line of Ashlesh Sanjay from Kotok Securities. Please go ahead.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Hi sir. Good evening. So two questions from my side. Firstly, can you talk about the outlook for margins over the next few quarters and secondly how do you think about the traction on backlog recoveries going ahead next quarter and then in FY27.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

The. Margin you can see in fact for June to September quarter two IOB was the only bank whose margin improved despite rate cut of 1% by the regulator June quarter. And if you see my domestic name from September to December Q3 also it has improved by 7 bips 3.35 to 3.14 and global NIM from 3.21 to 3.32. So NIM despite rate cutoff 125bps in last 910 months we have been able to ensure that margin gas strengthen only means NIM improves. Right now 3.32 of global NIM. I think it’s very comfortable, very healthy and we intend to maintain in this range only 3.3 to 3.4 going forward also.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

Okay, sir. And second was on the outlook for bad loan recoveries.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Yeah, sorry. So recovery we have done 2,600 crores for this financial year in nine months. This quarter we did around 890 crores. And in Q4 we all know that Q4 everything happens more aggressively in this Q4. So additional in this quarter we expect that at 14 to 1500 crores of recovery we will be doing so by the year end we will be crossing 4000 crores of recovery as planned in the beginning of the year.<\/p>\n

Operator<\/strong><\/p>\n

Perfection.<\/p>\n

Ashok Ajmera<\/strong><\/p>\n

That is very useful. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you ladies and gentlemen. If you wish to ask a question, please press star and 1. As there are no further questions from the participants. I now have the conference over to the management of Indian Overseas bank for closing comments.<\/p>\n

Ajay Kumar Srivastava<\/strong><\/p>\n

Yes, thank you everyone for sparing time and listening to the performance. Listening about the performance of IoB. So numbers have already been shared with all of you and only one thing I have to say is that we have been consistently doing whatever is required to be done as a commercial bank. And second consecutive quarter we have shown growth of net profit by more than 50%. For September it was 57%. And for QC it is 56%. Operating profit also has shown a good growth. Net interest income has grown and in all the critical areas, roa, you can see it is consistently improving.<\/p>\n

Now it is at 1.28. ROE stands at 20%. ROE 20.98%. So bank is on a growth trajectory. Business, sorry, business we have grown by 18%. Credit we have grown by 24%. Bank is on a growth path. Momentum is there. And we intend to continue with this aggressiveness only going forward. And our objective and aim is to be known as a bank which consistently performs that consistent work. We are more focused on that and I do hope that the team which is with me at IOB 21,000 Iobians, both the ADEs and the top management, we all are perfectly aligned to take this bank to the greater heights.<\/p>\n

And going forward, quarter on quarter, we are pretty sure that we will be able to show the numbers which take us in that direction. So thank you everyone for joining and sparing your time. Thank you.<\/p>\n

Sonali Pandey<\/strong><\/p>\n

On behalf of Board of Directors and the management team. We sincerely thank you for your participation and continued support. Indian Overseas bank wishes you a successful and prosperous 2026.<\/p>\n

Operator<\/strong><\/p>\n

Thank you on behalf of Indian Overseas bank and Veritas reputation. We conclude this conference. Thank you for joining us and you may now disconnect your lines.<\/p>\n","protected":false},"excerpt":{"rendered":"

Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon. Indian Overseas Bank (NSE: IOB) Q3 2026 Earnings Call dated Jan. 14, 2026 Corporate Participants: Sonali Pandey \u2014 Investor Relations Ajay Kumar Srivastava \u2014 Managing Director and CEO Analysts: Ashok Ajmera \u2014 Analyst Presentation: Operator […]<\/p>\n","protected":false},"author":2377,"featured_media":147581,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6349],"tags":[10169,9175,9104,9092,14492,10089],"class_list":["post-181640","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-transcripts","tag-earnings","tag-earnings-call","tag-earnings-conference","tag-earnings-transcripts","tag-financial-results","tag-quarterly-earnings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":142799,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-indian-overseas-bank-limited-for-q3-fy23\/","url_meta":{"origin":181640,"position":0},"title":"Earnings Summary Of Indian Overseas Bank Limited For Q3 FY23","author":"Hardik Bhandare","date":"February 24, 2023","format":false,"excerpt":"Indian Overseas Bank (NSE: IOB) is a public sector bank headquartered in Chennai, Tamil Nadu, India. 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PNB is a Banking and Financial service bank owned by the Government of India with its headquarters is in New Delhi, India. It is the Third largest PSU after IOB in India. The results are scheduled to be published on 26th July,\u2026","rel":"","context":"In "LATEST"","block_context":{"text":"LATEST","link":"https:\/\/alphastreet.com\/india\/category\/latest\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":65860,"url":"https:\/\/alphastreet.com\/india\/key-highlights-from-infosys-infy-q1-2021-earnings-results\/","url_meta":{"origin":181640,"position":4},"title":"Key highlights from Infosys (INFY) Q1 2021 earnings results","author":"Staff Correspondent","date":"July 15, 2020","format":false,"excerpt":"Infosys (NYSE: INFY) reported earnings results for the first quarter of 2021 today. Revenues declined 0.3% to $3.12 billion. Net profit after minority interest was $558 million while diluted EPS was $0.13. 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It provides a range of banking products and services to its customers, including personal banking, corporate banking, MSME banking, agricultural banking, and international banking. 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