IOB Share Price Slides Nearly 6% as ₹1,960 Crore OFS Opens

Market Performance

Indian Overseas Bank (IOB) shares came under sharp selling pressure during Wednesday’s session, dragging the PSU bank stock lower amid heightened market activity. The IOB share price slipped close to 6% intraday, reflecting investor reaction to the government’s latest stake sale move in the Indian stock market.

The stock touched an intraday low of ₹34.41, marking a decline of 5.87%, after closing at ₹36.57 in the previous session on the BSE. Around mid-afternoon, the IOB stock price was trading near ₹34.55, down over 5.5%.

Main News: IOB OFS Triggers Selling Pressure

The decline in the IOB share price followed the launch of a ₹1,960 crore Offer for Sale (OFS) by the government. The OFS opened on Wednesday, December 17, setting the tone for the stock’s movement during the day.

The IOB OFS price has been fixed at ₹34 per share, which represents a 7% discount to the previous closing price. The discounted floor price immediately weighed on sentiment, pushing the PSU bank stock lower as trading began.

This marks one of the notable developments among PSU bank stocks in recent sessions, keeping Indian Overseas Bank firmly in focus in today’s stock market action.

IOB OFS: Key Details at a Glance

To break down the OFS structure clearly:

• OFS Size:
  • Base offer of 38.51 crore shares (2% stake)
  • Additional option to sell 19.25 crore shares (1% stake)
• Total stake on offer: Up to 3% of the bank’s paid-up equity capital
• OFS Floor Price: ₹34 per share
• OFS Dates:
  • December 17: Institutional bidders
  • December 18: Retail investors
• Employee Quota:
  • 1,50,000 shares, representing 0.001% of equity capital

IOB Share Price Trend So Far

Despite the sharp fall seen today, the broader performance of the IOB share price over recent periods highlights continued pressure on the stock:

• Down 37% over the past year
• Down 33% on a year-to-date (YTD) basis
• Down 15% over the last three months

This trend has kept IOB valuations and price action under scrutiny within the PSU stocks space.

Company Performance Snapshot

While the stock has remained under pressure, Indian Overseas Bank has reported improvement in its financial performance during FY26:

• H1 FY26 Net Profit: ₹2,337 crore (up 66% YoY)
• Q2 FY26 Net Profit Growth: 58% YoY

Operational metrics also showed stability during the period:

• Gross NPA: 1.83%
• Net NPA: 0.28%
• Capital Adequacy Ratio: 17.94%
• Return on Equity (ROE): 20%

These figures place Indian Overseas Bank among PSU banks, showing a turnaround in core metrics, even as the stock price reflects near-term supply pressure from the OFS.

Summary

The IOB share price witnessed a sharp decline of nearly 6% as the government launched a ₹1,960 crore OFS at a floor price of ₹34 per share. The discounted offer weighed on the stock, pushing it to an intraday low of ₹34.41.

With up to 3% equity on offer and retail bidding scheduled for December 18, Indian Overseas Bank remains firmly in focus within PSU bank stocks and the broader Indian stock market. The session highlights how supply-led events like OFS can influence short-term stock movements, even as company-level financial performance shows improvement.