Indian Overseas Bank (NSE:IOB) Beneish M-Score: -2.44 (As of Jun. 24, 2026)


NSE:IOB Indian Overseas Bank NSE:IOB
62 GF Score
Price ₹34.95
GF Value ₹48.00
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Indian Overseas Bank Beneish M-Score?

Indian Overseas Bank NSE:IOB -1.22% 62 Beneish M-Score is -2.44 as of Jun. 24, 2026. GuruFocus rates NSE:IOB with a GF Score™ of 62/100 and a GF Value™ of ₹48.00 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,396 Banks companies, Indian Overseas Bank ranks better than 58.17% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.44 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Indian Overseas Bank's Beneish M-Score or its related term are showing as below:

NSE:IOB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.94   Med: -2.41   Max: -2.03
Current: -2.44

During the past 13 years, the highest Beneish M-Score of Indian Overseas Bank was -2.03. The lowest was -3.94. And the median was -2.41.

NSE:IOB
62GF Score
Indian Overseas Bank NSE:IOB
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Indian Overseas Bank Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Indian Overseas Bank for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1+0.528 * 1+0.404 * 1.0011+0.892 * 1.116+0.115 * 0.8388
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1746+4.679 * 0.001351-0.327 * 1.0695
=-2.44

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ₹0 Mil.
Revenue was ₹184,184 Mil.
Gross Profit was ₹184,184 Mil.
Total Current Assets was ₹0 Mil.
Total Assets was ₹4,727,952 Mil.
Property, Plant and Equipment(Net PPE) was ₹50,745 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹5,212 Mil.
Selling, General, & Admin. Expense(SGA) was ₹1,075 Mil.
Total Current Liabilities was ₹0 Mil.
Long-Term Debt & Capital Lease Obligation was ₹516,026 Mil.
Net Income was ₹54,185 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹47,797 Mil.
 Total Receivables was ₹0 Mil.
Revenue was ₹165,040 Mil.
Gross Profit was ₹165,040 Mil.
Total Current Assets was ₹0 Mil.
Total Assets was ₹3,947,100 Mil.
Property, Plant and Equipment(Net PPE) was ₹46,548 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹3,945 Mil.
Selling, General, & Admin. Expense(SGA) was ₹820 Mil.
Total Current Liabilities was ₹0 Mil.
Long-Term Debt & Capital Lease Obligation was ₹402,817 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(0 / 184184.259) / (0 / 165040.363)
=0 / 0
=1

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(165040.363 / 165040.363) / (184184.259 / 184184.259)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 50745.435) / 4727951.927) / (1 - (0 + 46548.21) / 3947099.931)
=0.989267 / 0.988207
=1.0011

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=184184.259 / 165040.363
=1.116

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(3944.557 / (3944.557 + 46548.21)) / (5211.757 / (5211.757 + 50745.435))
=0.078121 / 0.093138
=0.8388

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1074.542 / 184184.259) / (819.741 / 165040.363)
=0.005834 / 0.004967
=1.1746

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((516025.72 + 0) / 4727951.927) / ((402816.632 + 0) / 3947099.931)
=0.109144 / 0.102054
=1.0695

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(54184.659 - 0 - 47796.574) / 4727951.927
=0.001351

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Indian Overseas Bank has a M-score of -2.44 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.44 mean?
Indian Overseas Bank (NSE:IOB) has a Beneish M-Score of -2.44 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Indian Overseas Bank and its competitors. According to the industry distribution chart, Indian Overseas Bank ranks #584 out of 1396 companies in the Banks industry, placing it in the top 41.8%.
Is Indian Overseas Bank's Beneish M-Score too high?
Indian Overseas Bank's current Beneish M-Score is -2.44. Based on the distribution chart, Indian Overseas Bank ranks #584 out of 1396 companies in the Banks industry, which is above the industry midpoint. Overall, Indian Overseas Bank has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Indian Overseas Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Indian Overseas Bank ranks #584 out of 1396 companies for Beneish M-Score. This puts Indian Overseas Bank in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Banks company?
A good Beneish M-Score depends on the Banks industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Indian Overseas Bank and its competitors. Indian Overseas Bank's current Beneish M-Score is -2.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Overseas Bank stock overvalued right now?
Based on GuruFocus' analysis, Indian Overseas Bank (NSE:IOB) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹48.00, compared to a current price of ₹34.95 — trading 27.2% below its estimated fair value. The current Beneish M-Score is -2.44. Indian Overseas Bank's overall GF Score™ is 62/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Indian Overseas Bank (NSE:IOB), the current Beneish M-Score is -2.44 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Indian Overseas Bank (NSE:IOB) Overvalued in 2026?

Based on GuruFocus' analysis, Indian Overseas Bank stock appears to be undervalued. The current stock price of ₹34.95 is trading 27.2% below its estimated GF Value™ of ₹48.00. GuruFocus considers Indian Overseas Bank to be Modestly Undervalued.

Key valuation signals for NSE:IOB:

  • Beneish M-Score: -2.44
  • GF Value™: ₹48.00 vs. price of ₹34.95 (27.2% below fair value)
  • GF Score™: 62/100 with 2 warning signs

No single metric tells the full story. See the NSE:IOB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Indian Overseas Bank Business Description

Other Exchanges 532388:India
Address No. 763, Anna Salai, Central Office, Chennai, TN, IND, 600 002
Indian Overseas Bank is engaged in the banking sector. The bank is based in India and has branches in several Asian countries. The bank's business segments are Treasury Segment includes the entire investment portfolio and trading in foreign exchange contracts and derivative contracts; Corporate/Wholesale Banking segment comprises the lending activities of borrowers having exposure of seven Crores and above; Retail Banking include exposures which fulfil the four criteria of orientation, product, granularity, and low value of individual exposures for retail exposures; Digital Banking Segment as a sub-segment of Retail Banking Segment; and Other Banking Operations Segments which are not covered above. Majority of income comes from Retail Banking. It generates majority of income from Domestic.
62GF Score

Get the complete analysis for NSE:IOB

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹34.95
Price
₹48.00
GF Value