Indian Overseas Bank (IOB) reported a robust financial performance for Q2 2026, with net profit surging by 57.79% year-on-year to ₹1,226 crore. The bank achieved a business mix of ₹617,034 crores, marking a 14.1% year-on-year growth. CASA deposits reached ₹137,386 crores. The bank has significantly improved its asset quality, with gross NPA declining to 1.83% and net NPA to just 0.28%.
Strong Financial Performance
Indian Overseas Bank (IOB) has announced its financial results for the second quarter of fiscal year 2026, showcasing substantial growth and improved asset quality.
Key highlights for the quarter include:
- Net Profit: Increased to ₹1,226 crores, a 57.79% year-on-year increase.
- Total Business: Reached ₹617,034 crores, reflecting a 14.1% year-on-year growth.
- CASA Deposits: Grew to ₹137,386 crores with a 4.17% growth rate.
- Advances: Increased by 20.78% to ₹277,968 crores.
- Operating Profit: Recorded at ₹2,400 crores, a 12.78% year-on-year increase.
Improved Asset Quality
IOB has made significant strides in improving its asset quality during the quarter.
- Gross NPA: Reduced to 1.83%, a decrease of 89 bps year-on-year.
- Net NPA: Decreased to 0.28%, a reduction of 19 bps year-on-year.
- Provision Coverage Ratio: Improved to 97.48%.
- Recoveries: Total recovery from NPAs for the quarter amounted to ₹874 crores.
Key Ratios and Valuations
The bank’s key financial ratios also showed significant improvement:
- Net Interest Margin (NIM): Improved to 3.21%, an increase of 13 bps year-on-year.
- Return on Assets (ROA): Increased to 1.2%.
- Book Value Per Share: Improved to ₹13.13.
- Return on Equity (ROE): Increased by 305 bps to 19.95%.
- Earnings per share: Increased by 56% to ₹0.64
Strategic Initiatives and Outlook
IOB is focused on:
- Expanding its branch network, with plans to operationalize 234 new branches.
- Digital transformation, with 98% of transactions already occurring digitally.
- Growing CASA deposits and overall business.
- Maintaining strict control over slippages and improving asset quality.
Source: BSE
