https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Indian Overseas Bank (IOB) Q1 FY26 Results: Net Profit Surges 75.6% YoY to ₹1,111 Crore; Asset Quality Strengthens

Indian Overseas Bank (IOB) reports a 75.6% YoY surge in Q1 FY26 net profit to ₹1,111.04 crore, up from ₹632.81 crore in Q1 FY25, reflecting strong financial performance.
Indian Masterminds Stories

Chennai: Indian Overseas Bank (IOB) reported robust financial performance for the first quarter of FY26, with a 75.6% year-on-year (YoY) jump in standalone net profit to ₹1,111.04 crore, compared to ₹632.81 crore in the corresponding period last year (Q1FY25).

This significant growth comes on the back of improved core earnings, better asset quality, and a continued focus on operational efficiency.

Strong Income Growth and NII Performance

The bank’s total income for Q1FY26 surged 17% YoY to ₹8,866.47 crore, which included other income of ₹1,480.92 crore.

Net Interest Income (NII) stood at ₹2,746 crore, up nearly 13% from ₹2,441 crore in Q1FY25, supported by healthy loan growth and sustained interest margins.

Net Interest Margin (NIM) for the quarter was 3.04%, indicating stable interest-earning capacity.

Read Also: PSU Bank’s Initiative: Indian Overseas Bank (IOB) Rolls Out New Digital Services to Enhance Customer Experience

Operating Profit and Efficiency Ratios Improve

IOB’s operating profit before provisions and contingencies rose sharply by 41% YoY to ₹2,357.95 crore, compared to ₹1,675.86 crore in the same quarter last year.

  • Operating margin increased to 26.59% from 22.14%.
  • Net profit margin expanded to 12.53% from 8.36%.

Cost-to-income ratio improved by 754 basis points (bps) to 44.22%, showing enhanced operational efficiency.

Provisions Lower, Return Ratios Rise

The bank’s provisions and contingencies declined to ₹844.05 crore from ₹937.87 crore a year ago.
Return on Assets (ROA) improved by 44 bps to 1.14%, reflecting better profitability and balance sheet health.

Strong Growth in Advances and CASA Deposits

IOB posted strong credit growth with gross advances rising by ₹32,329 crore or 14.05% YoY, reaching ₹2,62,421 crore as of June 30, 2025, from ₹2,30,092 crore a year earlier.

CASA deposits grew 15% YoY to ₹1,44,837 crore, with the CASA ratio improving by 161 bps to 43.78%, signaling improved low-cost funding.

Asset Quality Shows Strong Improvement

The bank’s asset quality saw considerable improvement during the quarter.

  • Gross NPA reduced to ₹5,178.46 crore, down from ₹6,648.71 crore YoY.
  • Net NPA fell to ₹816.38 crore from ₹1,153.51 crore YoY.

This reduction in NPAs indicates effective recovery and credit risk management by the bank.

Outlook

With improved profitability, efficient cost control, and lower NPAs, IOB has delivered a strong start to FY26. The bank’s emphasis on asset quality, loan growth, and digital transformation is expected to sustain its growth trajectory in the upcoming quarters.

About IOB

Indian Overseas Bank (IOB), founded in 1937 by M. Ct. M. Chidambaram Chettyar, is a public sector bank headquartered in Chennai, India. IOB’s mission is to facilitate foreign trade and overseas banking, and it offers a wide range of financial services to retail, corporate, and institutional customers. The bank has a significant presence both domestically and internationally, with branches and representative offices in countries like Singapore, Hong Kong, and Dubai.

Read Also: Indian Overseas Bank Launches ‘Locate IOB’ Tool for Easy Access to Branches and ATMs


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
M2M SIM ownership transfer
DoT Approves New Framework for M2M SIM Ownership Transfer — A Game-Changer for India’s IoT Revolution
Prime Toolings dual boosters
India’s New Missile Muscle: Prime Toolings Unveils Dual-Booster Engine to Power Atmanirbhar Defence Drive — Know More Here
AK-203 Sher Rifle
From Russia with Pride: India’s AK-203 Sher Rifle Becomes 100% Made-in-India by December 2025
HAL CATS Warrior
HAL CATS Warrior Manned-Unmanned Teaming Revolution: 2027 Flight to Transform Indian Air Power
Delhi High court
Delhi High Court Welcomes 3 New Judges — Justice Dinesh Mehta & CS Sudha Lead the Power Trio
district judiciary reform
Supreme Court District Judiciary Reform: Can This Historic Case End 35-Year Career Dead-End for Civil Judges?
Delhi High court
ORS Trademark Ban: Delhi HC Says "No License to Deceive Consumers" - Dr Reddy's Challenges FSSAI
8th Pay Commission members
8th Pay Commission Formed: Chairperson Justice Ranjana Prakash Desai to IAS Pankaj Jain – Know More About All Members
ADVERTISEMENT
ADVERTISEMENT
Videos
IAS Gokul S
Meet IAS Gokul S — The Officer Who Turned Disability into Determination | Video Interview 
WhatsApp Image 2025-10-23 at 10.40
Everybody Needs To Know What Is Transpiring Behind Closed Doors Of Courts
WhatsApp Image 2025-10-19 at 12.23
UPSC Journey Should Be Enjoyable, Not Cumbersome
ADVERTISEMENT
UPSC Stories
IAS Gokul S
Meet IAS Gokul S — The Officer Who Turned Disability into Determination | Video Interview 
Visually impaired IAS officer Gokul S turned his challenges into change, empowering hundreds through...
Parmeshwar Chaudhary RAS
From Taunts to Triumph: How Farmer’s Son Parmeshwar Chaudhary Rose from Lab Assistant to SDM, Securing Rank 3 in RAS 2023
Parmeshwar, once taunted over his SI selection, has scripted a stunning success—securing Rank 3 in RAS...
IAS Rupal Rana UPSC
How Rupal Rana Cracked UPSC CSE 2023 with AIR 26 After Four Attempts
UPSC Topper Rupal Rana secured AIR 26 in 2023 after four attempts. Learn her preparation strategy, booklist,...
Social Media
Tenzin Yangki IPS Arunachal
Historic First: Who Is Tenzin Yangki, Arunachal Pradesh’s First Woman to Join IPS? Anand Mahindra Hails Her
She secured an impressive 545th rank in the prestigious UPSC Civil Services Examination - 2022.
IFS Parveen Kaswan
Heartbreak by the River: 15-Day-Old Elephant Calf Rejected by Mother, Rescued by IFS Parveen Kaswan and His Team
Jaldapra, West Bengal: In a moving incident that tugs at the heart, a 15-day-old elephant calf was rescued...
Ashwini Bhide IAS and Anand Mahindra
Who Is IAS Ashwini Bhide, Hailed as a Role Model for Mumbai Metro Transformation by Anand Mahindra?
From heritage to high-tech: Bhide’s leadership in Metro Line 3 earns public praise and admiration
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
M2M SIM ownership transfer
DoT Approves New Framework for M2M SIM Ownership Transfer — A Game-Changer for India’s IoT Revolution
Prime Toolings dual boosters
India’s New Missile Muscle: Prime Toolings Unveils Dual-Booster Engine to Power Atmanirbhar Defence Drive — Know More Here
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
IAS Gokul S
WhatsApp Image 2025-10-23 at 10.40
WhatsApp Image 2025-10-19 at 12.23
ADVERTISEMENT
ADVERTISEMENT