What is Indian Overseas Bank's current financial performance after exiting PCA?

IOB achieved a record net profit of ₹1,365 crore in Q3FY26, showing significant improvement after exiting RBI's PCA.

What is the future outlook for Indian Overseas Bank stock?

Analysts recommend a BUY for IOB stock with a target price of ₹45, expecting a 27% rise in 9-12 months.

How has Indian Overseas Bank improved its capitalisation?

IOB has improved its core equity capital (CET I) to 13.99% and maintains capital ratios above regulatory levels.

Home / Business and Economy / IOB Surges: Profit Soars 56%, Buy Signal Issued

IOB Surges: Profit Soars 56%, Buy Signal Issued

20 Jan

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Summary

Indian Overseas Bank exited RBI's PCA, showing improved profitability.
Net profit reached an all-time high of ₹1,365 crore in Q3FY26.
A BUY recommendation with a target price of ₹45 is suggested.

IOB Surges: Profit Soars 56%, Buy Signal Issued

Indian Overseas Bank (IOB) has successfully completed its turnaround, exiting the Reserve Bank of India's Prompt Corrective Action (PCA) framework. This strategic recovery has been marked by sustained improvements in profitability and capitalisation, alongside healthy business growth.

The bank's financial health has been significantly bolstered. Provision coverage on legacy stressed assets has increased, and capital ratios now exceed regulatory requirements. IOB's Common Equity Tier (CET I) stands at a strong 13.99% as of December 31, supported by profitability since FY21 and strong internal capital generation.

Q3FY26 marked a record-breaking quarter for IOB, with net profit soaring to ₹1,365 crore, a 56.21% year-on-year surge. This impressive performance was fueled by enhanced interest income and successful recovery of non-performing assets (NPAs).