Indian Overseas Bank (IOB) reported a record net profit of Rs 1,226 crore for the July–September quarter of FY26, marking a 57.79 per cent year-on-year rise from Rs 777 crore in the same period last year. The public sector lender’s strong performance was driven by strong credit growth, improved asset quality, and higher interest income.
Operating profit rose 12.78 per cent year-on-year to Rs 2,400 crore, while net interest income (NII) climbed 20.53 per cent to Rs 3,059 crore. The bank’s net interest margin (NIM) improved to 3.35 per cent domestically and 3.21 per cent globally, reflecting better yields and lower cost of funds.
IOB’s profitability metrics continued to strengthen during the quarter. The return on assets (ROA) rose by 38 basis points to 1.20 per cent, and return on equity (ROE) improved by 305 basis points to 19.95 per cent. The cost-to-income ratio fell by 321 basis points to 45.76 per cent, signalling improved efficiency.
For the half year ended September 2025, the bank’s net profit surged 65.74 per cent to Rs 2,337 crore, compared to Rs 1,410 crore a year earlier. Operating profit for the same period stood at Rs 4,758 crore, up 25 per cent year-on-year, while NII rose 16.59 per cent to Rs 5,805 crore. Casa deposits increased by 4.19 per cent to Rs 1,37,387 crore while Casa Ratio stood at 40.52 per cent as on 30 September.
Credit Growth Remains Strong, Asset Quality Improves
The bank’s total business grew 14.10 per cent year-on-year to Rs 6,17,034 crore, with deposits up 9.15 per cent to Rs 3,39,066 crore and gross advances up 20.78 per cent to Rs 2,77,968 crore. The credit-to-deposit ratio improved to 81.98 per cent, supported by sustained loan demand.
On the asset quality front, gross non-performing assets (GNPA) declined to 1.83 per cent from 2.72 per cent a year earlier, while net NPA fell to 0.28 per cent from 0.47 per cent. The provision coverage ratio further improved to 97.48 per cent.
The bank’s capital adequacy ratio (CRAR) stood at a healthy 17.94 per cent, with CET1 at 15.53 per cent and Tier-II capital at 2.41 per cent.
With a growing network of 3,373 domestic branches, 3,567 ATMs, and 11,467 business correspondents, IOB continues to deepen its customer reach across India. |
