1. Opening Hook
Remember that one PSU bank your uncle mocked as “sleeping since UPA era”?Well, it just woke up — and it’s doing yoga on its balance sheet.
Indian Overseas Bank, once trapped in PCA rehab, is now flexing record profits and calling itself “digitally 98%”. Ajay Kumar Srivastava’s tone screamed part-CEO, part-motivational speaker — “no looking back” vibes.
The story has all ingredients: tax refunds, branch bingeing, fintech tie-ups, and a clean-as-a-temple NPA book.Keep reading — this one’s not your usual PSU lullaby. It’s a redemption arc with Wi-Fi.
2. At a Glance
- Net Profit ₹1,226 Cr (+58%)– From PSU meme to PSU meme-stock material.
- Business Mix ₹6.17 L Cr (+14%)– Balance sheet did cardio.
- Advance Growth 20.8% YoY– Lending faster than you refresh UPI.
- CASA Ratio 40.5%– 4/10 rupees come cheap, management grins wide.
- NIM 3.21% (+13 bps)– Margins found caffeine finally.
- Gross NPA 1.83%, Net NPA 0.28%– Cleaner than your fintech app’s dark mode.
- PCR 97.5%– RBI can nap peacefully.
- ROA 1.2%, ROE ~20%– PSU blood, private-bank spirit.
3. Management’s Key Commentary
“Bank recorded all-time-high net profit of ₹1,226 crores.”(Translation:Someone please inform the memes department.🔥)
“Credit growth 20%, deposit growth 9%.”(Translation:Lending before customers even blink.*)
“CASA ratio at 40.5%.”(Translation:Free money tastes better after PCA exile.*)
“Slippage ratio only 0.11%.”(Translation:Even borrowers forgot they had EMIs.*)
“Digital transactions form 98% of total.”(Translation:Counters exist only for decoration now.*📱)
“We’ll open 240 new branches.”(Translation:Because PSU DNA demands more rent agreements.*)
“ESG lending started — IOB Surya, IOB Tejas.”(Translation:Green loans, still growing in nursery.*🌱)
“No merger talk — we only read it in newspapers.”(Translation:Delhi WhatsApp groups ahead of RBI again.*)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Change | One-Line Analysis |
|---|---|---|---|
| Total Business | ₹6.17 L Cr | +14.1% | Growth yoga continues post-PCA detox. |
| Advances | ₹2.78 L Cr | +20.8% | Retail + MSME lending sprint. |
| Deposits | ₹3.39 L Cr | +9.1% | CASA holding its ground. |
| Net Interest Income | ₹3,059 Cr | +20.5% | PSU learning the NII game. |
| Operating Profit | ₹2,400 Cr | +12.8% | Efficiency fairy finally showed up. |
| Net Profit | ₹1,226 Cr | +57.8% | Someone light a diya for this turnaround. |
| NIM | 3.21% | +13 bps | Margins breathing like private peers. |
| Cost-to-Income Ratio | 45.8% | –321 bps | PSU doing diet control. |
| GNPA / NNPA | 1.83 % / 0.28 % | –89 / –19 bps | Practically debt-free monks. |
| CRAR | 17.9 % | +64 bps | Enough buffer to open 240 branches. |
Snapshot:ROA hit 1.2%, ROE ~20%. A PSU delivering fintech metrics — time for private banks to stop laughing.
5. Analyst Questions
Ajmera (legendary PSU whisperer):“Sir, guidance 14–15% or higher?”→Mgmt:“12% is minimum; maximum no limit.”(Translation:We’re done pretending to be humble.*)
Aurum Capital:“Any stress pockets?”→Mgmt:“None. Just occasional borrowers with attitude.”
B&K Securities:“MSME underwriting method?”→Mgmt:“Micro ₹30k Cr, mostly secured, system + human mix.”(Translation:AI approves, babu double-checks.*)
Kotak:“ECL provisioning impact?”→Mgmt:“Maybe ₹2,800 Cr, but we’ll hide it in buffers.”(Translation:Smooth accounting > rough surprises.*)
Ariana Holdings:“Digital initiatives update?”→Mgmt:“98% digital, Fintech tie-ups, WhatsApp banking.”(Translation:PSU Meets Paytm vibe loading…💡)
6. Guidance & Outlook
IOB kept its guidance conservative (credit +12%, deposits
