Chennai: Indian Overseas Bank (IOB) has delivered a robust financial performance for the quarter and year ended March 31, 2026, driven by strong business growth, improved asset quality, and enhanced operational efficiency.
The Bank reported a 43.20% year-on-year jump in net profit to ₹1,505 crore in Q4 FY26, while full-year net profit rose sharply by 56.16% to ₹5,208 crore, reflecting sustained growth momentum across key segments.
Key Financial Highlights (Q4 FY26 vs Q4 FY25)
- Net Profit: ₹1,505 crore (↑ 43.20% YoY)
- Operating Profit: ₹2,665 crore (↑ 1.80% YoY)
- Net Interest Income (NII): ₹3,470 crore (↑ 11.11% YoY)
- Return on Assets (RoA): 1.32% (↑ 20 bps)
- Cost-to-Income Ratio: Improved to 44.02%
Full-Year Performance (FY26)
- Net Profit: ₹5,208 crore (↑ 56.16% YoY)
- Operating Profit: ₹10,026 crore (↑ 15.40% YoY)
- Net Interest Income: ₹12,574 crore (↑ 15.46% YoY)
- Sustained profitability supported by strong margins and disciplined cost management
Business Growth Highlights
- Total Business: ₹6.79 lakh crore (↑ 20.76% YoY)
- Total Advances: ₹3.10 lakh crore (↑ 24.16% YoY)
- Total Deposits: ₹3.68 lakh crore (↑ 18.03% YoY)
- CASA Deposits: ₹1.51 lakh crore (↑ 10.85% YoY)
- RAM Segment Growth:
- Retail: ↑ 45.12%
- Agriculture: ↑ 39.27%
- MSME: ↑ 13.08%
Asset Quality Strengthens Further
- Gross NPA: Reduced to 1.42% (↓ 72 bps YoY)
- Net NPA: Improved to 0.21% (↓ 16 bps YoY)
- Provision Coverage Ratio: 97.50%
- Credit Cost: Reduced to 0.30%
The Bank maintained zero slippages in Corporate and Overseas portfolios over the last two quarters, reflecting strong underwriting and risk management.
Recoveries & Risk Management
- Q4 Recoveries: ₹960 crore vs slippages of ₹366 crore
- Recovery-to-Slippage Ratio: 2.62x (Q4) and 2.95x (FY26)
- Strong recovery pipeline continues to support asset quality improvement
Capital Adequacy & Stability
- Capital Adequacy Ratio (CAR): 19.78%
- Tier I Capital: 16.94%
Network Expansion & Financial Inclusion
- Total Branches: 3,494 (added 159 branches YoY)
- 58% branches in rural & semi-urban areas
- ATM/CR Network: 3,651
- Business Correspondents: 12,187
- Total Customer Touchpoints: 19,332
Outlook
Indian Overseas Bank continues to focus on sustainable growth, digital transformation, and prudent risk management, strengthening its position as a resilient and customer-centric public sector bank.