Indian Overseas Bank (IOB) is an Indian public sector bank based in Chennai, founded in February 1937 by M. Ct. M. Chidambaram Chettyar with twin objectives of specializing in foreign exchange business and overseas banking. During the nationalisation, IOB was one of the 14 major banks taken over by the government of India. The bank has a rich heritage of nearly 88 years and has established itself as one of India's prominent financial institutions with a strong focus on serving both domestic and international markets.
IOB started up simultaneously at three branches, one each in Karaikudi, Madras, and Rangoon (Yangon). It quickly opened a branch in Penang, Kuala Lumpur (1937 or 1938), and another in Singapore (1937 or 1941). The bank initially served the Nattukottai Chettiars, a mercantile community that had spread across various Asian countries, establishing IOB's international presence from its inception.
The market cap of Indian Overseas Bank (IOB) is ₹76,930.08 Cr as of 4th July 2025. The bank has demonstrated strong financial performance in recent quarters, with net profit rising 27.38% to Rs 3,395.51 crore in the year ended March 2025 as against Rs 2,665.66 crore during the previous year ended March 2024.
For the most recent quarter, net profit of Indian Overseas Bank rose 34.74% to Rs 1,091.94 crore in the quarter ended March 2025 as against Rs 810.42 crore during the previous quarter ended March 2024. The bank's operational efficiency has also improved significantly, with total operating income rising 16.95% to Rs 28,143.64 crore in the year ended March 2025 as against Rs 24,065.67 crore during the previous year ended March 2024.
Key financial metrics as of recent reports include:
- P/E (price-to-earnings) ratio of 22.66
- P/B (price-to-book) ratio of 2.39
- 52-week high of ₹72.60 and 52-week low of ₹33.50
The Bank has 3,335 domestic branches and 3,497 ATMS as on 31st March, 2025, comprising of 929 rural branches, 1011 Semi Urban branches, 681 urban branches and 714 Metropolitan branches. This extensive network positions IOB as a significant player in India's banking sector, particularly in rural and semi-urban markets.
The Bank has its overseas presence in 4 countries Singapore, Hong Kong, Thailand and Sri Lanka. The Bank has one Branch each at Singapore, Hong Kong, Bangkok and Colombo. The Bank has 5 establishments abroad, including 4 Overseas Branches, and 1 Joint Venture Subsidiary as on 31st March 2024.
The bank offers comprehensive banking services including retail banking, corporate banking, NRI banking, and various financial products. IOB offers many services like savings and current accounts, term deposits, retail loans, home loans, mortgages, depository services, gold investment products, debit and credit cards, multi-city cheque facilities, insurance, mutual funds and real-time gross settlement services.
Management remains optimistic about growth, targeting a credit increase of 14% to 15% and expanding its branch network to bolster market presence. The successful capital raise through a Qualified Institutional Placement underscores market confidence, even as concerns about potential shareholder dilution linger.
The bank plans to raise ₹4,000 crore in equity capital to enhance growth and lending capacity, reflecting its strong financial position despite some asset quality challenges. This capital raising initiative demonstrates the bank's commitment to strengthening its balance sheet and supporting future growth.
On 5 December 2021, IOB got Degidhan Award 2020–21 by Ministry of Electronics and Information Technology for achieving second highest percentage of digital payment transaction among public sector banks. This recognition highlights the bank's successful digital transformation efforts and its focus on technology-driven services.
IOB prioritizes continuous technology adoption to enhance customer experience. They offer a range of digital banking services, including mobile banking and online banking platforms. The bank has been investing significantly in IT infrastructure to modernize its operations and improve customer service delivery.
Recent developments include strategic partnerships and expansion initiatives. Indian Overseas Bank has signed an MoU with the Tamil Nadu Government to offer attractive salary packages for state employees, including insurance and loan benefits. IOB signed an MoU with the Indian Institute of Banking & Finance (IIBF) to create a customized e-learning and certification program focused on MSMEs. This initiative aims to enhance employee knowledge and improve credit response for MSMEs.
Promoter holding in Indian Overseas Bank has gone down to 94.61 per cent as of Mar 2025 from 96.38 per cent as of Sep 2024. This slight reduction in government holding reflects the bank's preparation for potential strategic initiatives while maintaining its public sector character.
Indian Overseas Bank continues to play a crucial role in India's banking sector, particularly in serving rural and semi-urban markets while maintaining its traditional strength in international banking and foreign exchange operations. The bank's strong financial performance, extensive network, and ongoing digital transformation initiatives position it well for future growth in India's evolving banking landscape.
