1. Opening Hook
While private banks were busy explaining “temporary margin pressure” on CNBC, Indian Overseas Bank casually dropped its highest-ever quarterly profit and walked away. No buzzwords. No AI hype. Just old-school PSU banking, suddenly done right. 😏
Q3 FY26 wasn’t about survival anymore—it was about swagger. Credit growth raced ahead, NPAs vanished like bad memories, and management sounded suspiciously confident for a PSU bank. The kind of confidence that usually makes analysts uncomfortable.
From buffer provisions nobody asked for, to CRAR that magically improves once profits are counted, IOB’s call had everything: prudence, aggression, and a subtle flex at private banks.
Stick around—because the real story isn’t the profit number.
It’s how they got there… and what they’re quietly preparing next.
2. At a Glance
- Net Profit ₹1,365 Cr (+56%) – PSU bank casually prints record profit, refuses to celebrate.
- Credit Growth ~24% YoY – RAM engines firing; corporate kept on a tight leash.
- CASA 40.85% – Management: “Only 3 PSBs can do this. We’re one.”
- GNPA at 1.54% – NPAs now a rounding error.
- ROA 1.28%, ROE 20.98% – Ratios private banks pretend don’t matter.
3. Management’s Key Commentary
“We expect to close
the year with 24–25% credit growth.”
(Translation: Growth is not a forecast, it’s already baked in.) 😏
“Domestic CD ratio is only ~81% once overseas is excluded.”
(Translation: Relax, liquidity hawks. We did the math.)
“LCR is consistently above 120%.”
(Translation: RBI sleeps peacefully because of us.)
“₹800 Cr additional standard provision created as a buffer.”
(Translation: We didn’t need to, we just felt like it.) 😎
“₹1,500 Cr ECL provision is forward-looking.”
(Translation: We’re provisioning for problems that haven’t been born yet.)
“DTA of ₹2,900 Cr written off; shifted to new tax regime.”
(Translation: Tax holidays over. Welcome to clean books.)
“No corporate slippage for 2.5 years.”
(Translation: PSU banks can do risk management too—surprise.)
4. Numbers Decoded
| Metric | Q3 FY26 | Decoded Meaning |
|---|---|---|
| Net Profit | ₹1,365 Cr | Highest-ever quarter, not a one-off |
| NIM | 3.32% | Improved despite rate cuts |
| GNPA | 1.54% | Cleaner than most private peers |
| Net NPA | 0.24% | Practically sterile |
| CRAR | 16.3% (18.4% adj.) | Capital anxiety = zero |
| CASA | 40.85% | PSU moat still alive |
