Indian Overseas Bank (IOB) has announced robust financial results for the second quarter of FY27, with net profit jumping by 55.95% YoY to ₹1,912 crore. Operating profit also saw a significant increase of 25.67% YoY, reaching ₹3,016 crore. Net interest income rose by 26.41% YoY to ₹3,867 crore. The bank also reported improvements in asset quality, with a reduction in Gross NPA ratio to 1.19%.
IOB Reports Strong Q2 FY27 Financial Performance
Indian Overseas Bank (IOB) has demonstrated consistent growth momentum, reporting a substantial increase in its financial results for the quarter and half-year ended September 30, 2026. The bank’s net profit for the second quarter of FY27 surged by an impressive 55.95% year-on-year, reaching ₹1,912 crore. This significant jump underscores the bank’s strengthening performance.
Key Financial Highlights (Quarter Ended Sep-26)
- Net Profit: Increased by 55.95% YoY to ₹1,912 Crore.
- Operating Profit: Increased by 25.67% YoY to ₹3,016 Crore.
- Net Interest Income (NII): Increased by 26.41% YoY to ₹3,867 Crore.
- NIM (Domestic): Increased by 14 bps YoY to 3.49%.
- NIM (Global): Increased by 16 bps YoY to 3.37%.
- Return on Assets (ROA): Increased by 33 bps YoY to 1.53%.
- Return on Equity (ROE): Increased by 463 bps YoY to 24.58%.
- Cost to Income Ratio (CIR): Improved by 498 bps YoY to 40.78%.
- Gross NPA ratio: Reduced by 64 bps YoY to 1.19%.
- Net NPA ratio: Reduced by 12 bps YoY to 0.16%.
- Slippage ratio: Reduced by 4 bps YoY to 0.07%.
- Credit Cost: Reduced by 1 bps YoY to 0.17%.
- NPA Recovery: Stood at ₹647 Cr, 2.95 times the quarterly slippages.
- CRAR: Increased by 66 bps YoY to 18.60%, with CET-1 ratio at 16.26%.
- Global Business: Increased by 22.05% YoY to ₹7,53,078 Crore.
- Global Deposits: Increased by 20.16% YoY to ₹4,07,428 Crore.
- CASA Deposits: Increased by 20.73% YoY to ₹1,65,862 Crore.
- Domestic CASA %: Stood at 41.14%.
- Global CASA %: Stood at 40.71%.
Half Year Performance (H1 FY27)
For the half-year ended September 2026, IOB continued its growth trajectory:
- Net Profit: Increased by 52.85% YoY to ₹3,572 Cr.
- Operating Profit: Increased by 20.01% YoY to ₹5,710 Cr.
- Net Interest Income (NII): Increased by 30.15% YoY to ₹7,555 Cr.
- Non-Interest Income: Increased by 19.01% YoY to ₹3,387 Cr.
Key Ratios (H1 FY27)
- NIM (Domestic): Increased by 22 bps YoY to 3.48%.
- NIM (Global): Increased by 25 bps YoY to 3.37%.
- Return on Assets (RoA): Increased by 29 bps YoY to 1.46%.
- Return on Equity (RoE): Increased by 443 bps YoY to 23.83%.
- Slippage Ratio: Decreased by 8 bps YoY to 0.14%.
Segmental Growth
The RAM Segment of the Bank saw a substantial increase of 34.51% YoY, driven by a 33.77% growth in Retail, 47.31% growth in Agri, and 13.80% growth in MSME portfolios.
Deposit and Advance Growth
Global Business expanded by 22.05% YoY to ₹7,53,078 Crore, with Global Advances growing by 24.35% YoY to ₹3,45,650 Crore. Total Deposits increased by 20.16% YoY to ₹4,07,428 Crore, with CASA Deposits growing by 20.73% YoY to ₹1,65,862 Crore. Savings Bank Deposits rose by 18.11% YoY, and CD Deposits saw a notable increase of 31.87% YoY.
Source: BSE
