Bank stock jumps 4% after reporting 56% YoY increase in net profits

Synopsis: Public sector bank that is known for foreign exchange services announced its quarterly result which included a significant gain in its numbers with 15 percent in revenue and 56 percent in profit, along with increase in reach and shift in revenue mix.

One of the leading public sector banks that is majorly known for foreign exchange and overseas banking released its quarterly result, which includes a 15 percent increase in revenue along with a 56 percent increase in profits. 

With a market cap of Rs 69,628 Cr, Indian Overseas Bank saw its stock hit an intraday high of Rs 36.7 which is 3.6 percent higher than the previous close of Rs 35.4. The company’s stock has given a compounded return of 27 percent in the past 5 years.

The Q3FY26 Result.

In the latest quarter the company saw its total income rise by 15 percent YoY to Rs 9672 Crore in Q3FY26 from Rs 8409 Crore in Q3FY25, and saw a 5 percent increase on quarterly basis. The 9M revenue witnessed a growth of 13 percent from 9MFY25’s Rs 24461 Crore to Rs 27752 Crore in 9MFY26.

The Net Profits saw a 56 percent YoY growth from Q3FY25’s Rs 874 Crore to Q3FY26’s Rs. 1365 Crore. On a quarterly basis the company saw 11 percent growth. Talking about the 9M profits the company witnessed a 62 percent growth from 9MFY25’s Rs 2284 Crore to 9MFY26’s Rs 3703 Crore.

Significant Growth Areas

The company has witnessed a clear spurt in its deposits with a YoY growth of 14.5 percent by going from Rs 3.05 lakh crore in Q3FY25 to Rs. 3.5 lakh crore in Q3FY26 The company has seen a 15 percent growth in its revenue from the domestic segment, by going from Rs 8148 Crore in Q3FY25 to Rs 9356 Crore in Q3FY26. While the international revenue has grown by 20 percent to Rs 315 Crore.

Business Mix

As of the latest quarter, the company gets 46 percent of its business from Advances, while 32 percent comes from Term deposits, 18 percent from Savings bank and 4 percent from current deposits.

The bank operates a wide network of customer touch points with 3438 branches, 3622 ATMs and offices across India and abroad, supporting diverse customer segments. 31 percent of the branches are located in semi urban areas, 27 percent in Rural 42 percent in Metro and Urban areas combined. 

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