Indian Overseas Bank Achieves 49.32% Jump in Net Profit for Q1 FY27 as Growth Momentum Continues
Indian Overseas Bank (IOB) reported substantial growth and strong operational efficiency during the quarter ended June 30, 2026. The bank recorded a significant jump in its net profit while demonstrating robust expansion across deposits, credit, and network infrastructure.Net Profit for the bank increased by 49.32%, reaching ₹1,659 crore. Operating profit also saw considerable growth, rising 14.21% to ₹2,693 crore. Net Interest Income (NII) climbed by 34.30% to ₹3,688 crore. Key margin metrics included Domestic NIM at 3.48% and Global NIM at 3.37%. The bank's Return on Assets (ROA) stood at 1.41%, while Return on Equity (ROE) increased to 22.69%.
Business Growth and Deposit Mobilization
The bank’s total business witnessed a robust increase of 17.72%, growing to ₹6,98,325 crore. Total Deposits grew by 13.72% reaching ₹3,76,193 crore. Specific deposit segment growth included Savings Bank (SB) Deposits, which rose by 18.14% to ₹1,27,262 crore, and Retail Term Deposit (RTD), which increased by 15.81% to ₹1,86,882 crore. The bank maintained strong deposit bases with Domestic CASA at 41.45% and Global CASA at 41.05%.Credit growth was also marked, with Total Credit increasing by 22.75% to ₹3,22,132 crore. Within the Retail segment, the bank registered significant expansion, including 36.49% growth in Retail, 46.84% growth in Agri, and 16.15% growth in MSME segments.
Asset Quality and Capital Strength
The bank demonstrated improved asset quality metrics for the quarter. Gross NPA reduced to 1.33%, and Net NPA decreased to a low of 0.18%. The Provision Coverage Ratio (PCR) saw an increase of 20 basis points, settling at 97.67%.Managing asset strain, total slippages during the quarter were reduced to ₹195 Cr, resulting in a slippage ratio that hit a historic low of 0.06%. Furthermore, Total NPA Recovery stood at ₹654 Cr for the quarter, representing 3.35 times the quarterly slippages.
The bank’s capital strength remained solid, with CRAR increasing by 108 bps to 19.36%, supported by a Tier I ratio of 16.88%.
Operational Expansion and Performance Overview
In terms of operational footprint, Indian Overseas Bank expanded its domestic network, adding 28 new branches, bringing the total number of domestic branches to 3,522.The performance metrics for Indian Overseas Bank in June 2026 are summarized below:
| PARAMETERS | Jun-25 (Quarter) | Mar-26 (Quarter) | Jun-26 (Quarter) | Y-o-Y (%) | Q-o-Q (%) |
|---|---|---|---|---|---|
| Net Profit (Amt. in Crore) | 1,111 | 1,505 | 1,659 | 49.32% | 10.23% |
| Operating Profit (Amt. in Crore) | 2,358 | 2,665 | 2,693 | 14.21% | 1.05% |
| Net Interest Income (NII) (Amt. in Crore) | 2,746 | 3,470 | 3,688 | 34.30% | 6.28% |
| NIM-Domestic (%) | 3.17% | 3.35% | 3.48% | - | 13 bps |
| NIM-Global (%) | 3.04% | 3.25% | 3.37% | - | 12 bps |
| Return on Asset (ROA) (%) | 1.14% | 1.32% | 1.41% | - | 9 bps |
| Return on Equity (ROE) (%) | 19.00% | 21.94% | 22.69% | - | 75 bps |
| Gross NPA % | 1.97% | 1.42% | 1.33% | - | -9 bps |
| Net NPA % | 0.32% | 0.21% | 0.18% | - | -3 bps |
| Provision Coverage Ratio (PCR %) | 97.47% | 97.50% | 97.67% | - | 17 bps |
| Slippage Ratio | 0.10% | 0.13% | 0.06% | - | -7 bps |
| CRAR % | 18.28% | 19.78% | 19.36% | 108 bps | -42 bps |
| Total Deposit (Amt. in Crore) | 3,30,792 | 3,68,191 | 3,76,193 | 13.72% | 2.17% |
| Total Advances (Amt. in Crore) | 2,62,421 | 3,10,423 | 3,22,132 | 22.75% | 3.77% |
| Total Business (Amt. in Crore) | 5,93,213 | 6,78,614 | 6,98,325 | 17.72% | 2.90% |
IOB Stock Price Movement
Edging higher in live trading, shares of Indian Overseas Bank climb by 3.55%, reaching ₹35.05 as of 2:40 PM today. The gain is supported by active market participation, with over 25.98 million shares changing hands in the current session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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