Indian Overseas Bank (IOB) has reported a stellar performance for the quarter ended March 31, 2026, with a 43.20% year-on-year surge in net profit to ₹1,505 crore. The bank also achieved a significant 56.16% annual profit growth for the full fiscal year. With robust credit growth across retail, agriculture, and MSME sectors and improved asset quality metrics, the bank continues its strong growth momentum as it enters the new financial year.
Financial Highlights
For the fourth quarter of FY26, Indian Overseas Bank (IOB) demonstrated strong financial health, with net profit rising to ₹1,505 crore compared to ₹1,051 crore in the same period last year. The annual net profit for the 12 months ending March 2026 reached ₹5,208 crore, a remarkable 56.16% increase. Operating profit for the quarter stood at ₹2,665 crore, while Net Interest Income (NII) climbed 11.11% to ₹3,470 crore.
Business Growth and Asset Quality
The bank’s total business expanded to ₹6.79 lakh crore, registering a 20.76% year-on-year growth. Credit growth was led by the RAM (Retail, Agriculture, and MSME) segment, which saw a combined growth of 34.91%. Notably, Retail credit increased by 45.12% and Agri-credit by 39.27%. Total deposits reached ₹3.68 lakh crore, reflecting an 18.03% increase.
Asset quality showed significant improvement, with the Gross NPA ratio reducing by 72 bps to 1.42%. The bank achieved zero slippages in its Corporate book for the entire FY 2025–26. Furthermore, the Capital Adequacy Ratio (CAR) was strengthened to 19.78%, providing a solid foundation for future lending.
Network Expansion
IOB continued its focus on financial inclusion by expanding its footprint. The bank added 159 new branches during the year, reaching a total of 3,494 branches, with 58% located in rural and semi-urban areas. Additionally, total customer touchpoints increased to 19,332, supported by an expanded ATM/CR network and an increased number of Business Correspondents, ensuring deeper penetration into the country’s banking ecosystem.
Source: BSE
