Indian Overseas Bank (IOB) reports a 57.79% year-on-year increase in Net Profit to ₹1226 Cr for Q2-FY26, with total business reaching ₹617034 Cr. The bank’s Q2-FY26 Performance Analysis shows significant improvements in asset quality, digital initiatives, and financial inclusion. Key highlights include a decrease in Gross NPA to 1.83% and a strengthened Capital Adequacy Ratio (CRAR) at 17.94%.
Financial Highlights
IOB’s Q2-FY26 performance showcases notable financial achievements:
- Net Profit: ₹1226 Cr, up by 10.35% Q-o-Q and 57.79% Y-o-Y.
- Net Interest Income: ₹3059 Cr, reflecting a growth of 11.40% Q-o-Q and 20.53% Y-o-Y.
Business Growth
The bank demonstrated strong business growth across key parameters:
- Total Business: Reached ₹617034 Cr, an increase of 4.02% Q-o-Q and 14.10% Y-o-Y.
- Total Deposits: ₹339066 Cr, up by 2.50% Q-o-Q and 9.15% Y-o-Y.
- Advances: ₹277968 Cr, showing a growth of 5.92% Q-o-Q and 20.78% Y-o-Y.
Asset Quality
IOB significantly improved its asset quality during the quarter:
- Gross NPA: Reduced to 1.83%, a decrease of 14 bps Q-o-Q and 89 bps Y-o-Y.
- Net NPA: Decreased to 0.28%, a reduction of 4 bps Q-o-Q and 19 bps Y-o-Y.
- Provision Coverage Ratio (PCR): Increased to 97.48%.
Capital Adequacy
The bank maintained a strong capital position:
- Capital Adequacy Ratio (CRAR): Stood at 17.94%.
Financial Inclusion and Digital Initiatives
IOB continued to focus on financial inclusion and digital transformation:
- PMJDY Accounts: The bank has made substantial progress in expanding financial inclusion through Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.
- Digital Initiatives: The bank has launched several digital initiatives including IOB WhatsApp Banking, IOB Connect mobile banking app, and AI-powered tools to enhance customer experience.
Key Ratios
- Return on Assets (ROA): 1.20%
- Return on Equity (ROE): 19.95%
Source: BSE
