What Indian Overseas Bank does

Indian Overseas Bank (IOB) is a Chennai-headquartered Indian public sector commercial bank founded in 1937, listed on the NSE (ticker: IOB), with the Government of India holding a 92.44% equity stake as of March 2026. The bank operates a pan-India network of 3,494 branches across all 28 states and 8 union territories, complemented by an extensive ATM network, Business Correspondent agents (Alankit Limited and Avio Smart Market Stack), and digital channels including the IOB Connect mobile banking app, internet banking, UPI, POS terminals, FASTag, and video-based KYC. IOB serves retail customers, MSMEs, agricultural borrowers, NRIs, and corporate clients through specialized schemes including IOB Sakhi (women), IOB Tejas (MSME), IOB Surya (renewable energy), IOB Vidya Jyothi (education), and IOB Subha Gruha (home loans).

The bank's technology backbone centers on a digital banking platform supporting mobile banking, internet banking, UPI payments (including the merchant-focused IOB-UPI Vyapar), credit/debit cards, POS, FASTag, and digital onboarding services such as IOB NEST for video-based savings account opening and video-based pensioner life certificate verification. Core revenue mechanics are spread-based: Net Interest Income (NII) of Rs 12,574 crore in FY26 (up 15% YoY) represents the primary income stream, supplemented by non-interest income from fees, treasury operations, forex services, and bancassurance. Total advances reached Rs 3.10 trillion (up 24.2% YoY) and deposits Rs 3.68 trillion (up 18% YoY), with retail/agriculture/MSME lending comprising 78% of the credit portfolio. Operating profit crossed Rs 10,000 crore for the first time in FY26, and net profit reached Rs 5,209 crore (up 56% YoY).

IOB's go-to-market combines a direct-to-consumer motion via its branch and digital network with a channel-partner motion through BC partnerships for rural and semi-urban financial inclusion. The bank targets a horizontal segmentation across Retail, MSME, Agriculture, NRI, and Corporate segments, with pricing positioning on competitive deposit rates (6.5% on 1-year FDs, the highest among PSU banks) and competitive lending rates (home loans from 7.10%). The bank holds a 19.78% Capital Adequacy Ratio, gross NPA of 1.42%, and net NPA of 0.21%, reflecting significant asset quality improvement. Recent strategic priorities include a Rs 5,000 crore FY27 capital raise, GIFT City IFSC Banking Unit establishment, BC-driven rural expansion, and government-led disinvestment signaling.

Name

Indian Overseas Bank

Legal name

Indian Overseas Bank

Website

https://iob.in

Company type

Private

Founded year

1937

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Indian Overseas Bank is an Indian public sector commercial bank headquartered in Chennai, offering retail, MSME, agricultural, corporate, and NRI banking services through 3,494 branches, business correspondent agents, and digital channels including mobile banking, UPI, and internet banking.

Ownership category

akta.pro rank

Product category

Public Sector Retail and Commercial Banking

NAICS

Commercial Banking (52211)

SIC

National Commercial Banks (6021)

akta.pro primary industry

Public Sector Retail Banks (State-Owned Commercial Banks) (FSABAKAL)

akta.pro secondary industry

SME Deposits & Business Accounts (Operating, Savings, CDs) (FSABABAC)

Keywords

• Retail banking services
• MSME lending
• Agricultural credit
• NRI banking services
• Digital banking

Headquarters

HQ city

Chennai

HQ country

India

HQ region

Asia

Offices4 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Others

Revenue model

1. Net Interest Income: Interest income from lending operations minus interest paid on deposits, representing the core spread-based revenue. In FY26, net interest income reached Rs 12,574 crore, up 15% from FY25.
2. Non-Interest Income: Fee income from services including account maintenance, transactions, forex services, and insurance distribution. Total operating income crossed Rs 10,000 crore for the first time in FY26.
3. Treasury Operations: Income from investment portfolio and trading activities. Note: The bank incurred a treasury loss of approximately Rs 555 crore in Q4 FY26 due to mark-to-market and revaluation impacts.
4. Fee-based Services: Various banking services including credit card services, lockers, demat services, and government business transactions generating recurring fee income.

Pricing tiers

Go-to-market motion2 records

Distribution channels6 records

Marketing channels5 records

Core offering

Indian Overseas Bank is a public sector commercial bank that accepts deposits (savings, current, term, FCNR, NRE/NRO) and extends credit (retail loans, MSME loans, agricultural loans, corporate credit) to individuals, businesses, farmers, NRIs, and government entities. The bank also distributes third-party financial products (mutual funds, insurance, sovereign gold bonds, NPS pension) and operates digital payment infrastructure (UPI, FASTag, POS). It delivers these services through 3,494 branches, ATMs, business correspondents, and digital channels across India.

Product overview

Indian Overseas Bank is a public sector bank offering a comprehensive digital banking platform with multiple delivery channels including mobile banking, internet banking, and extensive branch network. The product portfolio spans retail banking (savings/current accounts, fixed deposits, recurring deposits), retail lending (home loans, personal loans, vehicle loans, education loans, jewel loans), business banking (MSME credit schemes, current accounts, agricultural credit), NRI banking (FCNR deposits, NRE/NRO accounts), digital payments (UPI, POS, FASTag), and investment services (mutual funds, demat, insurance, NPS). The bank operates 3,494 branches with digital-first initiatives including IOB NEST for video-based account opening, IOB mobile and internet banking apps, and UPI-based payment solutions. Core lending products include specialized schemes for women entrepreneurs (IOB Sakhi, IOB Pink Wheels), MSMEs (IOB Guarantee Plus, IOB Tejas), and renewable energy (IOB Surya). The digital ecosystem includes IOB Credit Cards, debit cards, locker services, and government scheme participation (PM Vishwakarma, NPS Vatsalya).

Differentiator

Problem solved

Functional benefit

Brands

• IOB NEST: Digital banking and account services platform
• IOB Shakti
• IOB Sakhi
• IOB Pink Wheels
• IOB Surya
• IOB Freedom
• IOB Subha Gruha
• IOB Vidya Jyothi
• IOB Tejas
• IOB Mahila Samriddhi
• IOB Guarentee Plus
• IOB Gold Monetization Scheme

Products and services

• Personal Loan Unsecured personal loans for medical emergencies, travel, and other personal needs offered to salaried and self-employed individuals at interest rates starting from 10.25%, with easy EMI options including pension loans and top-up schemes.
• Home Loan (IOB Subha Gruha) Home loan product for purchasing, constructing, or renovating residential properties with flexible tenure options, including NRI Home Loan and green home loan variants under IOB HARIT SUBHAGRUHA, with interest rates starting from 7.10%.
• Vehicle Loan Auto loans for new and used vehicles including cars and two-wheelers, with attractive interest rates starting from 7.55% for electric vehicles and special IOB Pink Wheels variant for women borrowers at concessional rates.
• Education Loan (IOB Vidya Jyothi) Education loan for higher studies in India and abroad covering tuition, living expenses, and equipment costs, with simplified documentation and PM Vidya Lakshmi portal integration.
• Jewel Loan Gold-backed loan against pledged gold ornaments providing quick access to funds at lower interest rates starting from 7%, enabling customers to leverage gold holdings for immediate liquidity.
• Savings Bank Account Savings accounts for individuals including Regular SB, BSBDA, SB-MAX, SB-Super-Star, IOB Sixty Plus, IOB SB Pensioner, SB-HNI, IOB Freedom, IOB Eco, IOB Parivaar, and salary variants with special benefits for senior citizens and central government employees.
• Current Account Current account facilities for businesses with features like overdraft, multiple transaction options, and dedicated business banking services for traders, manufacturers, and service providers.
• Term Deposits / Fixed Deposits Fixed and recurring term deposits with interest rates up to 6.5% for general public and 6.75% for senior citizens on 1-year tenure, including Tax Saver, Reinvestment, IOB Green Deposit, IOB Eighty Plus, Vardhan, Floating Rate, and Multiple Deposit Plan variants.
• NRI Banking (NRE/NRO Accounts) Non-Resident External and Non-Resident Ordinary rupee accounts for NRIs to manage India-origin income and funds, with seamless remittance facilities and NRI Self Service Portal access.
• FCNR(B) Foreign Currency Deposits

Quantifiable outcome

• Gross NPA reduced to 1.42% from 2.14% year-on-year, indicating significant asset quality improvement
• +3 more outcomes

Named customers3 records

Segments5 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature5 records

Partnerships

Four partnerships are on record, tiered minor and core.

• Tamil Nadu State Level Bankers' CommitteeminorStrategic or Co-development Partner · 11 June 2026IOB participates in Tamil Nadu's State Level Bankers' Committee meeting where credit outlay of Rs 10.98 lakh crore for 2026-27 was announced, marking 12% increase from previous year. Banks achieved 109% of credit disbursal target with focus on priority sectors including education, agriculture, MSME, and housing.
• NBCC India LtdminorStrategic or Co-development Partner · 15 May 2026NBCC India Ltd secured a Rs 20.15 crore contract from Indian Overseas Bank for construction of their office building in Amaravati, Andhra Pradesh. This represents IOB's investment in expanding its physical infrastructure presence in the new capital region.
• Alankit LimitedcoreChannel Partner/ Reseller/ Distributor · 21 April 2026Alankit Limited has partnered with Indian Overseas Bank as its Business Correspondent (BC), making it the tenth public sector bank in Alankit's network. The partnership enables IOB to offer basic banking facilities through 2,600+ BC locations across multiple states including Gujarat, Maharashtra, Punjab, and Uttar Pradesh. Alankit currently operates over 3,000 business nodes across 673+ cities, processes over 11 lakh transactions monthly, and serves more than 25 million customers nationwide.
• Avio Smart Market Stack LimitedcoreChannel Partner/ Reseller/ Distributor · 3 April 2026Avio Smart Market Stack Limited (ASMS) received a purchase order from Indian Overseas Bank to implement Corporate Business Correspondent (CBC) services to expand financial inclusion in rural and semi-urban areas of India. The three-year contract involves deploying and managing Business Correspondent Agents (BCAs) supported by technology infrastructure to improve banking accessibility, with scope potentially expanding to about 500 banking touchpoints.

Scale indicators15 records

Recent moves10 records

Expansion highlights7 records

Direct peers

• UCO Bank: Mid-sized PSU bank with similar government shareholding profile and comparable priority-sector/MSME lending focus.
• State Bank of India: India's largest public sector bank and the closest comparable to IOB by business model, customer segments, and government ownership profile. Both offer full-service retail, MSME, agriculture, and NRI banking with extensive branch networks.
• Bank of Baroda: Large Indian PSU bank with similar retail/MSME/corporate banking mix. Directly comparable on deposit pricing, government ownership, and exposure to government-linked corporate credit.
• Punjab National Bank: Major PSU bank with overlapping retail, MSME, and agriculture priorities. Comparable on sovereign ownership structure, branch-led distribution, and recent asset quality recovery narrative.
• Canara Bank: Indian PSU bank of similar scale post-Syndicate merger, with comparable product portfolio (retail, MSME, NRI, treasury) and overlapping geographic footprint.
• Bank of India: PSU bank with matched FD pricing leadership (IOB and BOI both offer the highest 1-year PSU FD rate at 6.5%) and similar priority-sector credit orientation.
• Union Bank of India: PSU bank with similar post-merger balance sheet profile and government ownership. Comparable across retail lending, digital initiatives, and treasury operations.
• Central Bank of India: Smaller PSU bank with overlapping priority-sector and financial inclusion mandate. Comparable on QIP fundraising pipeline and government shareholder dynamics.
• Indian Bank: PSU bank explicitly mentioned as a potential merger counterparty for IOB under banking reform committee recommendations. Direct overlap in retail/MSME/agriculture lending and digital banking.

Broad incumbents

• HDFC Bank: Largest private sector bank in India, providing a benchmark for digital banking maturity and deposit/loan pricing power that IOB competes against. Useful as a private-sector incumbent comparable rather than a pure peer.

Market position

Strengths5 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/iobindia
• YouTubeyoutube.com/c/IndianOverseasBankOfficial
• Facebookfacebook.com/theofficialiob
• LinkedInlinkedin.com/company/indian-overseas-bank
• Instagraminstagram.com/iobindia

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Subsidiaries1 record

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments9 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Indian Overseas Bank