New Delhi: Public sector lender Indian Overseas Bank (IOB) has announced its financial results for the first quarter of financial year 2026-27 (Q1FY27), reporting strong growth in profitability and business performance.
The Chennai-headquartered bank recorded a 49.32% year-on-year rise in net profit to ₹1,659 crore for the quarter ended June 2026.
The bank had reported a net profit of ₹1,111 crore during the same quarter of the previous financial year.
The growth was supported by higher income generation, improved asset quality, and better recovery performance.
IOB Total Income Rises to ₹10,938 Crore in June Quarter
Indian Overseas Bank witnessed a significant increase in its revenue during the April-June 2026 period.
According to the bank’s stock exchange filing:
- Total income increased to ₹10,938 crore
- Total income stood at ₹8,866.47 crore in the same quarter last year
- Operating profit increased by 14.21% to ₹2,693 crore
The financial performance reflects the bank’s continued focus on business expansion and operational efficiency.
Read also: Indian Overseas Bank Shareholders Approve ₹5,000 Crore Capital Raise Plan at 26th AGM
Key Financial Highlights of Indian Overseas Bank Q1FY27
Major financial highlights of IOB for the June 2026 quarter include:
- Net Profit: Increased by 49.32% to ₹1,659 crore
- Operating Profit: Increased by 14.21% to ₹2,693 crore
- Return on Assets (ROA): Improved to 1.41%
- Return on Equity (ROE): Increased to 22.69%
- Total Business: Increased by 17.72% to ₹6,98,325 crore
- Total Deposits: Increased by 13.72% to ₹3,76,193 crore
- Total Credit: Increased by 22.75% to ₹3,22,132 crore
Asset Quality Improves as Gross NPA Falls to 1.33%
Indian Overseas Bank continued to strengthen its asset quality during Q1FY27.
The bank’s Gross Non-Performing Assets (GNPA) declined to 1.33% in the June quarter, compared with 1.97% in the same period last year.
Similarly, the bank’s Net NPA reduced to 0.18% from 0.32% year-on-year.
The improvement in asset quality was driven by better recovery efforts and effective management of stressed assets.
Slippages Decline, NPA Recovery Shows Strong Improvement
IOB reported a major improvement in loan quality indicators during the quarter.
Key highlights include:
- Total slippages: Reduced to ₹195 crore
- Slippage ratio: Declined to a historic low of 0.06%
- Total NPA recovery: Stood at ₹654 crore
- NPA recovery was 3.35 times higher than quarterly slippages
The bank’s Provision Coverage Ratio (PCR) also improved by 20 basis points to 97.67%, reflecting stronger financial protection against bad loans.
IOB Provisioning Remains Stable During Q1FY27
The bank reported provisions of ₹834 crore during the quarter under review.
The provisioning level remained almost unchanged compared with ₹844 crore in the June quarter of the previous year, while it was lower than ₹1,006 crore reported in the March 2026 quarter.
Indian Overseas Bank Shares Rise After Q1 Results
Following the announcement of its quarterly results, shares of Indian Overseas Bank witnessed positive movement on the stock market.
IOB shares were trading higher by:
- 3.55% at ₹35.05 on the BSE
- Later afternoon trade showed gains of around 4.11% at ₹35.20
The rise in share price came after investors responded positively to the bank’s strong profit growth and improved financial position.
IOB Continues Focus on Growth and Financial Strength
The Q1FY27 performance highlights Indian Overseas Bank’s progress in improving profitability, expanding its loan portfolio, and strengthening asset quality.
With strong growth in deposits and credit, lower NPAs, improved recovery, and higher profitability, the bank is focusing on sustainable growth and customer-focused banking services.
About Indian Overseas Bank (IOB)
Indian Overseas Bank (IOB) is a public sector bank headquartered in Chennai, Tamil Nadu. Established in 1937, the bank offers a wide range of services, including retail banking, corporate banking, MSME loans, agriculture financing, and digital banking solutions. IOB continues to expand its banking network while focusing on financial inclusion, technology adoption, and long-term growth.
