Indian Overseas Bank Sees Double-Digit Deposit Growth After Two Slow Years

• Indian Overseas Bank (IOB) reports a significant turnaround with double-digit deposit growth, ending two years of industry-wide struggle.
• Savings deposits increased by 11.36% year-on-year, while retail term deposits under ₹3 crore grew by nearly 16%.
• IOB maintains focus on the Retail, Agriculture, and MSME (RAM) segment, which constitutes 76-77% of its loan book and shows consistent double-digit growth.
• The bank has improved its Net Interest Margins (NIMs) to 3.32% in Q3FY26, despite RBI rate cuts, through a balanced loan book and careful deposit repricing.
• Corporate lending remains selective due to pricing concerns, with IOB prioritizing value-adding opportunities.

Why It Matters: IOB achieves strong deposit growth and improved margins, driven by strategic focus on RAM segment and careful management.