Indian Overseas Bank Q2FY26 Concall Decoded: The Phoenix Bank That Refused To Retire
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.
“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.*)
