Good evening, and welcome to Indian Overseas Bank's conference call to discuss our financial results for Q3 FY '25-'26 ended December 31, 2025. Indian Overseas Bank, IOB, 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 in bank's fold. Our comprehensive suite of services spans personal, corporate, and agricultural banking, along with credit cards, loans, and insurance products.

Our financial results are available on our website and stock exchange platforms. 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 Ajay Kumar Srivastava, Managing Director and CEO; Shri Joydeep Dutta Roy, Executive Director; Shri Dhanaraj T., Executive Director.

We will begin with an overview of our Q3 performance followed by a Q&A session. Now I invite [unclear] Jha, Chief Financial [unclear] of the bank, to present the financial highlights.

Over to you, sir.

Yeah. Thank you, Ms.

Sonali. Good evening to all.

I am pleased to present the overview of the bank's performance during the quarter and nine-month 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 ₹1,365 crore for this quarter with a 56.18% year-on-year increase.

Regarding the performance of the bank for nine-month ended 31st December 2025, bank has achieved a business mix of ₹6,44,276 crore, recording year-on-year growth of 18.71%. CASA 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%.

Gross advances, year-on-year basis, it has increased to 24.13%, reaching to ₹2,94,974 crores against ₹2,37,632 crore last year 31st December. Bank has shown the operating profit of ₹2,603 crore, again record, and it is over and above growth of 14.87% based on the last year performance.

Net profit of the bank has increased by ₹491 crore and reached to ₹1,365 crores as on December 2025 as compared to ₹874 crore during December 2024, recording a year-on-year growth of 56.18%. PCR, provision coverage ratio, improved to 96 97.49% from 97.07% last year.

Capital adequacy ratio, CRAR, stood at 16.30% against the earlier it was 17%. Now, as per regulatory requirement, it was 11.50%.

We have achieved that. It is 16.30%.

NIM, again we have recorded the figure of 3.32%. Continuously, it is growing.

Last time, it was 3.21%. The CD ratio of the bank is increased to 84.45%.

With regard to NPA management, gross NPA reduced from ₹6,071 crore to ₹4,530 crores, year-on-year basis, and net NPA reduced to ₹708 crore from ₹976 crore last year. GNPA ratio, it has come down to 1.54% from 2.55% last year.

Similarly, net NPA ratio has been reduced by 18 bps to 0.42% on December 2024 to 0.24% in December 2025. Slippage ratio is contained at 0.11% during this quarter.

With respect to valuation, there is a significant improvement on the return of asset that has increased to 1.28% for quarter ended 31st December 2025. With regard to book value of share, it is improved to ₹13.90 as on December 2025 while same was 10.66 only during December 2024.

There is a significant increase in return on equity with a 312 bps 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 our bank which I want to present to you.

I request to proceed.

Thank you for this opportunity and of asking the first question. In fact, my question has a combination of questions and observations and some clarifications.

Compliment to you, sir, Srivastava sahab, Joydeep ji, Dhanaraj ji, and the entire management team of the Indian Overseas Bank for the yet another good quarter rather the better quarter, best quarter of the results. What is actually heartening 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. I'm sure the way the last quarter has done, 6.12%, you will end the year by 24%, 25% of the credit growth, which will be one of the highest or rather the highest in the entire PSB space or the banking space.

My compliments to you for the same, sir. Having said this, sir, I got some clarification that now with this kind of credit growth, our CD ratio has already come to the top band like 84.45%, and our CRAR has proportionately come down to 16.30%.

With this growth and this kind of CD ratio already achieved, how do you see that growth momentum to continue? What are the plans for that to maintain the CRAR also on the higher credit numbers?

This is my just 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, sir.

Yes. Good afternoon, Ajmera sahab.

Thank you so much. I will be replying to all these three observations first.

Credit growth, of course, we have grown year-on-year, it is 20%, December over December, if you see. Over March, of course, your observation is right.

Maybe here we will be ending the year with a growth of around 24% to 25%. That is what we are also expecting.

This credit growth is coming from all sectors: retail, agri, MSME, and a little bit of corporate also. The next point is CD ratio you are talking.

CD ratio 84% whatever you are watching, that includes overseas centers. If you exclude that overseas centers, then CD ratio is around 81%, domestic.

Because overseas center there is no concept of deposit loan against. It is around 81%, 81.18% or something CD ratio, which is very much within the region, manageable thing.

The second part which you have not pointed out is that retail term deposit we have grown by 16%. SB we have grown by more than 11%.

Deposit growth is also happening to that extent. Third part is that there's a concept of LCR which RBI monitors on a daily basis, which for all banks is mandatorily pegged at 100% it should be there.

We are consistently maintaining it around 120% plus. On 31st December, it was around 127.

Yesterday, it was 122. There is no issue on the aspect of liquidity.

CD ratio is 81. LCR is more than 181 82 121 122.

That aspect is very well taken care of, and going forward also, it will be maintained like this. The third part of CRAR, CRAR 16.30, one aspect is that it is still very healthy against mandatory requirement of 11.50.

Having said that, this three quarters net profit of ₹3,700 crores is not factored into capital so far. It gets factored at the end of the year.

If this ₹3,700 crores we factor, then this CRAR as on 31st December, it is around 18.40.

There

is no cause of concern on the aspect of CRAR also, sir. All bases are fully covered.

Strategy is in place, and we are successfully implementing it.

Yes, sir. Point well taken, sir, and you properly explained the whole thing.

Now coming to the sir this our profitability, yes, because of the good credit growth and the good business growth, we have we have grown our operating profit also. This quarter also our operating profit is ₹2,603 as compared to the last quarter of ₹2,400 crore.

For only ₹2 crore tax provision because the other provision this year has become this quarter has become very high. If you look at the for the overall provisions, it has gone up to ₹1,236 crore as compared to ₹672 crore.

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. 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, what is this extra other provision? Secondly, why the tax provision is only ₹2 crore?

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 done forward-looking ₹1,500 crores of ECL provision in the name of ECL. That ₹1,500 crores also we have done.

That is away from whatever numbers we have given. So ₹1,500 crores is one part, that is ECL.

₹800 crores we have given additional provision, standard provision, just as a cushion. Third part is so far we were under DTA, sir.

DTA was around ₹2,900 crores, and bank is having accumulated losses. This tax was not applicable to that extent, and in this December quarter, this DTA has been made nil.

₹2,900 crore DTA was there, that has been made nil. As a consequence of that, sir, we have moved to new tax regime.

In previous conferences, if you remember, you have been asking this question when bank is planning to move to new tax regime. December, we have moved, sir.

Okay. That's a great great thing.

It will give the benefit to the bank in the coming years also accordingly of the reduction in the 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.

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 still the load is yet to be passed on?

No, that is yet to be figured out, sir, and we'll start working on that. This ₹175 crore does not reflect that.

This reflects ₹160 crores of additional surplus provision we have made towards pension and gratuity liabilities, which was not supposed to be made, but since we are having cushion available, we have made ₹160 crores additional provision on HR regarding this. That is how ₹175 crores you are looking at.

Actually, it is ₹15 crores increase only.

Sir, this quarter, we have also observed that the— Mr. Ashok, I would request you to

Just last one. If you permit.

Sir, in this quarter, we have observed that asset quality has further improved. Rather, the gross NPA has gone down drastically from 1.83 to 1.54, and that is because of the little higher write-off of ₹601 crore as against ₹108 crore in the last quarter.

Whether this write-off things is over or 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?

Sir, technical write-off is only ₹500 crores, and it is done based on the requirement, sir. If you look at recovery, recovery we have around ₹890 crores, and recovery has been consistently we are doing more than slippages for last many, many quarters.

As a sum total of this, you talked about GNPA. GNPA has reduced.

It's total of recovery plus technical write-off plus whatever OTS we have sanctioned, a part of write-off has come from that, plus ARC sale, all those things have happened. Right now we are at 1.54, and we expect that another 5 to 7 bps it can reduce in this quarter, in Q4.

What is our total written-off book, sir? Written-off book amount, outstanding amount?

Around ₹23,000 crores, sir.

₹23,000 crore. Sir.

Thank you very much for this round of questioning and very elaborate explanation. If time permits, I'll come back again, sir.

Yes, most welcome. Thank you.

All the best to you, sir.

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 this corporate advances of about ₹51,000 crores odd, can you please give us a breakup of this to which sector or industry this advances have been given?

It is a mixture of PSU, private players, and plus NBFCs.

Sir. Sir, actually compared to the other segments like retail, agri, and MSME, which have shown double-digit growth, why is it the corporate loan growth is languishing in single figure?

No, it's not languishing. I will say that it's a well-thought-out call, part of the strategy.

See, you have to understand the dynamics. We are having 3,400 branches.

All these 3,400 branches can do retail, agriculture, and MSME. Corporate is done by only 20 branches across the geography.

Since number of branches doing retail, agri, MSME is more, naturally retail, agri, MSME happens more. There we get good rate of interest also, risk is spread out, and capital requirement is lower.

That becomes priority of course, RAM, and all my branches can do. Corporate, we are very selective about onboarding customers.

First thing is of course good corporates with good rating, and second part is that we should be able to get proper pricing. We are not in the business of lending at 6% or 6.5%.

Wherever we are getting good value, we are lending there only, and that is how we are managing corporate. All along 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 like this.

Sir. Sir, and last one is just a hypothetical question.

Sir, your last dividend declared was quite a few years back because understanding that you were under prompt corrective action. Sir, now that you have come out of this, can we expect dividends in the coming time?

Yeah. We came out of PCA in 2021, September 2021, long back.

PCA story is very, very old. Next year, of course, next financial year, we will be in a position to give dividends, of course.

Sir. That's all from my end, and thank you, and all the best for the future.

Thank you.

Hi, good evening, and congratulations on a good set of numbers. I have two questions.

One is our overseas gross NPA remains around 8.5% on higher side, elevated basically. Any idea or a roadmap or a timeline for this book, how we are planning to tackle or recover that?

Okay. So 8.5% overseas, see overseas we are supposed to be guided by local regulations.

There we do not have that SARFAESI or DRT or those things are not available to be implemented there. The only thing which happens is through the courts.

In all these cases, cases have been filed and they are under process. Whatever securities were available, that have already been sold with the permission of the court and we have appropriated the money.

It will come down, but court's decision, how much time it takes. We cannot give a definite timeline, but of course all cases are under recovery process.

Okay. What percentage of our new retail loans are now digitally sourced?

Around 13% to 14%.

Okay. All right.

That's all from my side. Thank you, and best of luck.

Thank you.

Thank you for the opportunity. Am I audible?

Yes, please.

Yeah. Sir, our CASA percentage was coming down on a year-on-year basis, though there is some marginal improvement on a QoQ basis.

Is there any challenges that we are facing over there, and how does the bank plan to balance aggressive credit growth with deposit mobilization?

Sir, two things we have to understand here. CASA consists of two parts: CA and SA.

If you look at SA, year-on-year we have grown by 11.4%. In absolute terms, it is ₹11,910 crores.

SA growth has been in double digit, growth is happening. Current account because of its nature of the product, money comes and goes.

As a matter of prudence, we are not encouraging those transactions which happen for only one day, last day of the quarter. That we have purposely not encouraged, and that is how current account we have not been able to grow to that extent.

Of course, if you wanted, we could have grown for one day and numbers it would have been shown here, but those numbers would not have been realistic. SA 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 retail term deposit is growing at a faster pace, then naturally percentage will move. My retail term deposit has grown by 16.3% year-on-year.

In absolute terms, it is almost ₹25,000 crores. To that extent, SB and current has not grown.

Of course, they have grown. SB has grown by ₹12,000 crores.

Absolute terms growth is there, but in percentage terms, since retail term deposit comes into play which has grown at a higher rate, so that is how percentage has come down to 40.85% global. Domestic if you see, overseas branches do not have CASA deposit concept.

CASA domestic is 41.29%, and only three public sector banks in the system are having CASA percentage above 40%, and we are one of them. We have been consistently maintaining CASA percentage above 40, 41.

Do you see that henceforward CASA percentage could come down as the growth will happen and as you are suggesting because of the challenges? Certainly not.

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. I do not see that CASA percentage is going below 41%.

Of course, we cannot aspire to go beyond 45%, but we will be very successfully maintaining CASA percentage above 41.

Okay. My second question is about technological and operational strategies that are driving the bank's digital transformation goals.

What are those? Specifically, 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?

Yeah. I'll start from budget.

Every year expenditure on IT infrastructure goes on increasing. Last year, it was ₹1,200 crores.

This year, we have taken approval of board for ₹1,600 crores, both capital and revenue expenditure, and almost 70% of that has been spent also. A lot of regular upgradation happens in IT infrastructure.

Recently, we have done the entire core banking modernization with a probable expenditure of around ₹600 crores, that we call tech refresh. That has happened.

State-of-the-art data center we have created. Core network infrastructure upgradation has happened.

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 to ensure that IT infrastructure is matching with whatever is needed to be done for running the bank smoothly and to compete at that level.

We are at that place, at that level, and we get full support of our board also for this. IT infrastructure, I can say that it is one of the best in the system.

Got it, sir. My next and final quick question is about the competition with private sector bank in general.

I see that PSU banks, there is a complete resurgence, and they are grabbing the business compared to private sector banks. 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? Can you shed some light on that?

No, 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, five years back, they all are trying to come back. Many of them have come back also.

Because of lots of improvement in the efficiency and IT infrastructure and lots of products, public sector they are giving I will say good banking experience to the general public, and that is how things are happening. The overall image of public sector banks as a doer, as a decision-maker, as actually delivering the things, that has improved a lot.

Got it, sir. Okay.

Wish you all the best.

Thanks for giving the second opportunity. Sir, since I got the time now, one thing is there that government 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.

In order to dilute and bring it within the SEBI guidelines of 75%, I think almost about ₹12,000 crore of dilution will have to be done at the current market price. What are the plans on that front?

Is it going to be OFS only or a QIP kind of a thing? What plans the board has approved, and are there in pipeline for you to execute to bring down the government stake in the bank?

Sir, right now Government of India holding is 92.44%.

A year back

a year back, February '25, it used to be 96% plus. From February '25 till December, we reduced it by almost 4% to 92.44.

We are having an approval of ₹4,000 crores of capital raising through QIP. We have got all the approvals, and in this quarter, we are going to raise this ₹4,000 crores, maybe February or maybe in March.

The entire process is going on, whatever is needed to be done. If that ₹4,000 crores if with that, this 92.44 will further get reduced by 4%.

In one year, you can in one year, you can see that from last March to this March, the holding from 96, it will come down to around 90 around 88. Next financial year again we will plan, and we do hope that it will reduce further as per the requirement.

All right. In future, it may be a combination of OFS and QIP again, isn't it?

Maybe after this QIP of ₹4,000 crore, again government might go for OFS if the price is good in the market. Sir.

Now, sir, a little bit of data points on this gold loan front. What is the combination of total gold loan book between agri and non-agri loan, and what kind of approximate yield which we are getting on the gold loan agri and non-agri, sir?

Yield is around 8.5% to 9%. There are different products, different schemes, and there are certain products where yield is less than 8.25 also.

Retail and agri, major part of the retail gold loan whatever is happening is happening, that is almost 50% to 60% is for agriculture purposes, and balance gets distributed amongst MSME and retail.

Okay. All right, sir.

Sir. Thank you very much.

Thank you.

Good evening, sir. My name is Bimal Panchal, and congratulations for the one of the best results in the history of the bank.

Lots of questions have been asked by previous participants, I'm not repeating. My one question is that there has been frequent news appears that all PSU banks will be consolidated into at the most four or five banks.

Any communications from the government regarding in this, and because of this, is there been any instructions to hold on branch expansions or fundraising? Is there any break on these two two aspects?

Thank you, sir.

Sir, two things. One thing is that this year we are recruiting around 1,200 people, and 400 people have recently onboarded.

Remaining will onboard in another three, four, five months. This year we have already opened 120 branches odd, and another around 180 are in the pipeline, which will be opened over next three to six months.

Expansion plan, recruitment plans, everything is going as per the business plan which we envisaged in the beginning of the year is going on as usual. The second part is merger and consolidation.

We do not have any information, either verbal or written. Nothing is available with us.

Right. Thank you very much, sir.

Thank you.

Congratulations to the team IOB for the fantastic results. My question is around loan book granularity.

The background is PSU banks historically faced volatility due to large-ticket corporate exposures, even when headline GNPA numbers looked comfortable. The question is how has the top 20 or top 50 borrower concentration evolved, and what internal thresholds are guide incremental exposure decisions today, sir?

Sir, there are two aspects. One is that the total credit consists of retail, agriculture, MSME, and corporate.

If you look at bank's credit portfolio closely, you will see that all these four are equally distributed to around 25%, between 25% to 30%. Retail, agriculture, and MSME constitute around 76%.

Corporate is around 23% to 24%, and we intend to maintain at that level only. Whatever corporate existing accounts are there with us or whatever we have onboarded, all those accounts are absolutely healthy, standard, running, and absolutely regular.

Sir. You said corporate 25 and SME is about 70, right?

RAM: retail, agriculture, MSME, all three taken together is around 76% to 77%.

76%, okay. All right.

All right. My second question is on slippages across the system have been benign over recent quarters, particularly reflecting favorable micro conditions.

Sir, what early warning indicators is the bank tracking to sort of distinguish between structural asset quality improvement and cyclical low

slippage? Here also two aspects.

One thing is that if you look at the slippages number over last two years of IOB, you will see slippage ratio around 0.11, 0.12 like that.

Quarterly

slippage is around ₹250 to ₹300 crores over a credit base of almost ₹3 lakh crore. Slippage ratio is very low, and 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 and reviewed.

Another part of your question is EWS, early warning signals, that is already automated. Almost 144 different scenarios have been put in the system.

It's a software. Early warning signals are getting generated on a regular basis, and those alerts are acted upon by by the teams which have been put for this activity.

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, and accordingly it will continue like this only in future also.

Correct, correct, correct.

One more thing and one more thing, there has not been any corporate slippage over last two years, two and a half years, or three years.

Absolutely. Absolutely, yeah.

All right, sir. Another question I have on valuation rerating triggers.

PSU banks often trade at a discount despite improved fundamentals? My question is what two or three execution milestones would the IOB management views as critical for a sustained valuation rerating, given that the stock is still?

Sir,

our job is to give good numbers, show 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. We are very consistent in whatever we do.

Beyond that, it is market dynamics. On that, we do not have any control.

So

All right, sir. All right.

All right. Thank you so much.

Thank you so much, and all the best for the next quarters. Thank you.

Thank you.

Hi, sir. Good evening.

Sir, two questions from my side. Firstly, can you talk about the outlook for margins over the next few quarters?

Secondly, how do you think about the traction on bad loan recoveries going ahead next quarter and then in FY '27?

Margin you can see, in fact for June to September, quarter two, IOB was the only bank whose NIM margin improved despite rate cut of 1% by the regulator June quarter. If you see my domestic NIM, from September to December, Q3 also, it has improved by 7 bps, 3.35 to 3.42.

Global NIM from 3.21 to 3.32. NIM despite rate cut of 125 bps in last 9, 10 months, we have been able to ensure that margin gets sustained only, 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.

Sir. Second was on the outlook for bad loan recoveries.

Sorry. Yeah.

Recovery, we have done ₹2,600 crores for this financial year in nine months. This quarter, we did around ₹890 crores.

In Q4, we all know that Q4 everything happens more aggressively in this Q4. Additional in this quarter, we expect that ₹1,400 to ₹1,500 crores of recovery we'll be doing.

By the year-end, we will be crossing ₹4,000 crores of recovery as planned in the beginning of the year.

Perfect, sir. That is very useful.

Thank you.

Yes, thank you everyone for sparing time and listening about the performance of IOB. 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.

Second consecutive quarter, we have shown growth of net profit by more than 50%. For September, it was 57%, and for Q3, it is 56%.

Operating profit also has shown a good growth. Net interest income has grown.

In all the critical areas, ROA you can see, it is consistently improving. Now it is at 1.28.

ROE stands at 20%, ROE 20.98%. Bank is on a growth trajectory.

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.

Our objective and aim is to be known as a bank which consistently performs. That consistent word we are more focus on that.

I do hope that the team which is with me at IOB, 21,000 IOBians, both the EDs and the top management, we all are perfectly aligned to take this bank to the greater heights. Going forward, quarter-on-quarter, we are pretty sure that we will be able to show the numbers which take us in that direction.

Thank you everyone for joining and sparing your time. Thank you.

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.