Indian Overseas Bank (IOB) has reported a record quarterly performance for the unaudited quarter and half year ended 30 September 2025, driven by strong profitability, robust business growth, and continued improvement in asset quality. For Q2 FY26, the bank’s net profit stood at ₹1,226 crore, marking a sharp 57.8% year-on-year (YoY) increase, supported by higher net interest income, improved margins, and stable credit costs. Total business expanded to around ₹6.17 lakh crore, reflecting healthy growth in both deposits and advances, while capital and provisioning buffers remained comfortable.
Key Financial Highlights (Q2 FY26)
Profitability
• Net Profit: ₹1,226 crore (+57.8% YoY)
• Profit Before Tax: ₹1,728 crore (+76% YoY)
• Operating Profit: ₹2,400 crore (+12.8% YoY)
• Net Interest Income (NII): ₹3,059 crore (+20.5% YoY)
• Net Interest Margin (NIM): Domestic – 3.35%; Global – 3.21%
Business Volumes
• Total Business: ₹6,17,034 crore (+14.1% YoY, up ₹76,233 crore)
• Total Deposits: ₹3,39,066 crore (+9.15% YoY)
– CASA Deposits: ₹1,37,087 crore
– CASA Ratio: 40.52%
• Gross Advances: ₹2,77,948 crore (+20.8% YoY)
Asset Quality
• Gross NPA: ₹5,078 crore; GNPA Ratio: 1.83% (vs 2.72% YoY)
• Net NPA Ratio: 0.28% (vs 0.47% YoY)
• Provision Coverage Ratio: 97.48%
Efficiency and Returns
• Cost-to-Income Ratio: 45.76% (improved from 48.97% YoY)
• Return on Assets (ROA): 1.20%
• Return on Equity (ROE): 19.95%
Capital Adequacy
• CRAR (Basel III): 17.94%
– CET1: 15.53%
– Tier II: 2.41%
Half-Year (H1 FY26) Performance
IOB’s half-yearly results mirrored its quarterly strength, with consistent growth in profitability, business volumes, and asset quality compared with the same period last year (H1 FY25).
Additional Highlights
• Credit Cost: ~0.18%
• Slippage Ratio: ~0.11%, indicating benign impairment trends.
• Management commentary underscored the ‘all-time high profitability’ and steady improvement in key operating metrics as of 30 September 2025.
• Figures are based on unaudited (reviewed) standalone results and select ratios disclosed by the bank.
Summary Insight
Indian Overseas Bank’s Q2 FY26 results underscore the institution’s ongoing turnaround, supported by prudent asset quality management, improved efficiency, and strong capital adequacy. The performance marks a significant step in strengthening its profitability trajectory and reinforces investor and depositor confidence going into the second half of FY26.
Financial Performance Summary (Q2 FY26)
| Key Parameter | Value / Ratio |
| Net Profit (YoY Growth) | ₹1,226 crore (+57.8%) |
| Net Interest Margin (Domestic / Global) | 3.35% / 3.21% |
| Total Business | ₹6.17 lakh crore (+14.1%) |
| CASA Ratio | 40.52% |
| Gross NPA / Net NPA | 1.83% / 0.28% |
| Provision Coverage Ratio | 97.48% |
| Cost-to-Income Ratio | 45.76% |
| Return on Assets / Equity | 1.20% / 19.95% |
| CRAR (CET1 / Tier II) | 17.94% (15.53% / 2.41%) |
