IOB’s Strong Growth Story Continues: Net Profit Touches All-Time High of ₹1,365 Crore, Up 56.18% YoY

Chennai, January 14, 2026: Indian Overseas Bank (IOB) continued its strong growth momentum in Q3FY26, delivering robust financial performance across profitability, business expansion, asset quality, and capital adequacy. The Bank reported an all-time high net profit of ₹1,365 crore for the quarter ended December 2025, marking a significant year-on-year growth of 56.18% compared to ₹874 crore in Q3FY25. For the nine-month period, net profit surged to ₹3,703 crore, registering an impressive growth of 62.13% YoY.

Ajay Kumar Srivastava, MD, IOB

Profitability Strengthens Further

Operating profit for Q3FY26 stood at ₹2,603 crore, up 14.87% YoY, while operating profit for the nine months rose by 21.27% to ₹7,361 crore. Net Interest Income (NII) increased by 18.29% YoY to ₹3,299 crore during the quarter, with nine-month NII reaching ₹9,104 crore, up 17.20%. The Bank’s domestic Net Interest Margin (NIM) improved to 3.42% in Q3FY26, while Return on Assets (ROA) rose sharply to 1.28% from 0.93% a year earlier. Cost efficiency also improved, with the cost-to-income ratio at 45.74%.

Business Growth Remains Robust

IOB’s total business expanded by ₹1.01 lakh crore to ₹6.44 lakh crore as of December 2025, reflecting a strong YoY growth of 18.7%. Deposits grew by 14.5% to ₹3.49 lakh crore, supported by CASA deposits of ₹1.43 lakh crore, registering 7.8% growth. The domestic and global CASA ratios stood healthy at 41.29% and 40.85% respectively. Retail Term Deposits increased by 16.3% to ₹1.75 lakh crore.

On the credit front, total advances grew by 24.1% YoY to ₹2.95 lakh crore. Retail, Agriculture, and MSME (RAM) segments continued to drive growth, with retail credit rising by 43.04%, agriculture by 34.51%, and MSME by 17.42%. Overall RAM business recorded a strong 33.1% YoY growth.

Asset Quality at Best-in-Class Levels

The Bank reported further improvement in asset quality, with Gross NPA declining to 1.54%, down by 101 basis points YoY, and Net NPA reducing to 0.24%, an improvement of 18 bps YoY. The slippage ratio improved to 0.11%, while the Provision Coverage Ratio (PCR) increased to a robust 97.49%. Credit cost for Q3FY26 reduced to 0.44%, reflecting prudent risk management.

Strong Recovery Performance

IOB’s recovery efforts remained strong, with total recovery of ₹890 crore in Q3FY26, including ₹635 crore from written-off accounts. Recoveries consistently exceeded slippages, with recoveries nearly three times higher. For the nine-month period, recoveries stood at ₹2,616 crore against slippages of ₹845 crore, underscoring effective asset quality management.

Capital Position and Network Expansion

The Bank’s Capital Adequacy Ratio (CAR) stood at a comfortable 16.30% as of Q3FY26, with Tier-I at 13.99% and Tier-II at 2.30%. Strengthening its pan-India footprint, IOB added 116 branches over the last year, taking the total to 3,438 branches, with 58% located in rural and semi-urban areas. The ATM/CR network expanded to 3,622, while Business Correspondents increased to 11,959. Overall, the Bank’s total customer touchpoints reached 19,019 as of December 31, 2025.

With consistent profitability, strong balance sheet growth, improving asset quality, and expanding reach, Indian Overseas Bank’s growth story continues to gain momentum, reinforcing its position as a resilient and forward-looking public sector bank.

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