Two of India’s twelve state-owned banks are run from Chennai: Indian Bank, whose corporate office is in Royapettah, and Indian Overseas Bank (IOB). Both appear in the Reserve Bank’s list of SBI and nationalised banks, and between them they held more than ₹12 lakh crore of deposits by mid-2026.
They grew from very different starting points. One was a Madras bank born in the Swadeshi years; the other was founded by a Chettiar banker to finance trade with Burma and Southeast Asia. Here is how they got here and what their latest official numbers show.
Indian Bank: from 1907 to a ₹15 lakh crore business
Indian Bank’s own history page records that it was incorporated on 5 March 1907 with an authorised capital of ₹20 lakh and opened for business on 15 August 1907. Some milestones it lists:
- 1932: silver jubilee and its first overseas office, in Colombo.
- 1941: a branch in Singapore.
- 1970: the head office moved from rented premises into its own building.
- 1989: the bank says it was the first public sector bank to install an ATM, at its Harbour branch.
- 2006: President A.P.J. Abdul Kalam opened the centenary celebrations on 4 September.
- 2007: initial public offer in February.
- 2012: the present corporate office at Royapettah was inaugurated.
- 2020: Allahabad Bank, with a 155-year history, was amalgamated into Indian Bank with effect from 1 April 2020.
The merger roughly doubled the bank’s reach into north India. Its profile page, as of 30 June 2026, shows 6,003 domestic branches (2,011 rural, 1,606 semi-urban, 1,195 urban and 1,191 metro), 5,676 ATMs and cash machines and 17,314 business correspondents. Global business was ₹15.29 lakh crore in the June 2026 quarter.
For the full year 2025-26 the bank reported a net profit of ₹12,156 crore, up 11.33% from ₹10,918 crore, in its 29 April 2026 results release.
IOB: a bank built for overseas trade
IOB’s About us page says it was founded on 10 February 1937 by M.Ct.M. Chidambaram Chettyar, mainly to specialise in foreign exchange business and take Indian banking abroad. It opened three branches on the same day, at Karaikudi, Chennai and Rangoon in Burma, followed by Penang in Malaysia. That mix tells you who it served: Nattukottai Chettiar trading houses with interests across Southeast Asia.
At Independence IOB had 38 branches in India and 7 abroad, with deposits of ₹6.64 crore. When it became one of the 14 banks nationalised in 1969, it had 195 branches in India and deposits of ₹67.70 crore. It still has an overseas presence in Singapore, Hong Kong, Thailand and Sri Lanka.
The latest numbers side by side
| Figure | Indian Bank | IOB |
|---|---|---|
| Founded | 1907 | 1937 |
| Domestic branches | 6,003 (June 2026) | 3,522 (June 2026) |
| Deposits, June 2026 | ₹8,44,578 crore | ₹3,76,193 crore |
| Advances, June 2026 | ₹6,84,623 crore (gross) | ₹3,22,132 crore |
| Net profit, April to June 2026 | ₹3,273 crore | ₹1,659 crore |
| Gross NPA, June 2026 | 1.86% | 1.33% |
The IOB figures come from its 20 July 2026 results release, which put total business at ₹6,98,325 crore. Gross NPA is the share of loans that have stopped being repaid; both banks have brought it well below the levels of a few years ago.
A few more figures show how the two banks have changed. Indian Bank’s business crossed ₹1 lakh crore in March 2008 and ₹10 lakh crore in 2022, its history page notes. In June 2026 it had 2.48 crore mobile banking users and 2.77 crore UPI users, with a capital adequacy ratio of 17.58%. IOB’s low-cost current and savings deposits made up 41.45% of its domestic deposits in June 2026, according to its results release, a share that matters because it keeps a bank’s funding cheaper.
What this means for customers in Chennai
- Complaints: both banks have grievance cells at their head offices, but the fastest route is usually the branch, then the bank’s online grievance form, then the RBI Integrated Ombudsman (cms.rbi.org.in) if there is no reply within 30 days.
- Deposit safety: deposits in both are insured by DICGC up to ₹5 lakh, per the RBI’s deposit insurance FAQ, per depositor per bank, like any other scheduled bank.
- Shares: both are listed on the stock exchanges and file their quarterly results there, which is where the figures above come from.
This is general information, not investment advice; consult a financial adviser before buying bank shares.
Quick answers
Where is Indian Bank’s head office?
Its corporate office is in Royapettah, Chennai, inaugurated in 2012, according to the bank’s history page.
Who founded Indian Overseas Bank?
M.Ct.M. Chidambaram Chettyar, on 10 February 1937, with branches at Karaikudi, Chennai and Rangoon.
When did Allahabad Bank merge with Indian Bank?
The amalgamation took effect on 1 April 2020.
Which of the two is bigger?
Indian Bank, with about 6,000 branches and ₹8.4 lakh crore of deposits in June 2026, against IOB’s 3,522 branches and ₹3.8 lakh crore.
Information checked against official sources on 18 October 2026. Fees, dates and rules can change; confirm on the linked official pages before acting.
Sources
- History (Indian Bank)
- Bank’s profile, as of 30 June 2026 (Indian Bank)
- Indian Bank press release on FY26 results, 29 April 2026 (NSE filing)
- About us (Indian Overseas Bank)
- IOB press release on Q1 FY27 results, 20 July 2026 (NSE filing)
- Banks in India (Reserve Bank of India)
- Deposit insurance FAQs (Reserve Bank of India)
