Chennai: Indian Overseas Bank (IOB) reported a 55.95% year-on-year increase in net profit to ₹1,912 crore for the quarter ended September 30, 2026, compared with ₹1,226 crore in the corresponding quarter last year. The public sector lender continued to report growth in operating profit, net interest income, advances and deposits during the second quarter of FY27.
The bank’s operating profit rose 25.67% year-on-year to ₹3,016 crore, while net interest income (NII) increased 26.41% to ₹3,867 crore. Global business grew 22.05% to ₹7,53,078 crore, reflecting expansion in both advances and deposits.
Advances and Deposits Register Strong Growth
IOB’s global advances increased 24.35% year-on-year to ₹3,45,650 crore, while global deposits rose 20.16% to ₹4,07,428 crore. The bank’s Retail, Agriculture and MSME (RAM) segment recorded 34.51% growth. Within the segment, retail advances grew 33.77%, agricultural advances increased 47.31%, and MSME advances rose 13.80%.
Current Account and Savings Account (CASA) deposits grew 20.73% year-on-year to ₹1,65,862 crore. Savings bank deposits increased 18.11% to ₹1,31,408 crore, while current account deposits rose 31.87% to ₹34,454 crore.
Asset Quality Improves Further
The bank reported an improvement in asset quality, with the gross non-performing asset (NPA) ratio declining by 64 basis points year-on-year to 1.19%. The net NPA ratio fell by 12 basis points to 0.16%.
The slippage ratio declined to 0.07%, while credit cost stood at 0.17%. NPA recovery during the quarter amounted to ₹647 crore, equivalent to 2.95 times the quarter’s slippages.
The capital-to-risk-weighted assets ratio (CRAR) stood at 18.60%, up 66 basis points year-on-year, while the Common Equity Tier 1 (CET-1) ratio was 16.26%.
Profitability Ratios Strengthen
IOB’s domestic net interest margin (NIM) improved by 14 basis points year-on-year to 3.49%, while global NIM rose by 16 basis points to 3.37%.
Return on assets (ROA) increased to 1.53%, up 33 basis points, and return on equity (ROE) improved by 463 basis points to 24.58%. The cost-to-income ratio improved to 40.78%, a reduction of 498 basis points year-on-year.
Half-Year Net Profit Rises 52.85%
For the six months ended September 30, 2026, IOB reported net profit of ₹3,572 crore, up 52.85% from ₹2,337 crore in the corresponding period of the previous financial year.
Operating profit increased 20.01% to ₹5,710 crore, while net interest income rose 30.15% to ₹7,555 crore. Non-interest income grew 19.01% to ₹3,387 crore.
For the first half of FY27, domestic NIM stood at 3.48% and global NIM at 3.37%. Return on assets improved to 1.46%, while return on equity reached 23.83%.
The results reflect continued growth in IOB’s profitability and business volumes, alongside improvements in asset quality and key financial ratios during the first half of FY27.
