Chennai : Indian Overseas Bank (IOB) has reported a robust financial performance for the first quarter of FY27, delivering strong growth across profitability, business expansion and asset quality. The public sector lender posted a 49.32% year-on-year (YoY) increase in net profit to ₹1,659 crore, while total business grew 17.72% to ₹6,98,325 crore, reflecting continued momentum across its core banking operations.
The Bank’s Operating Profit increased 14.21% to ₹2,693 crore, while Net Interest Income (NII) rose 34.30% to ₹3,688 crore, supported by improved margins and healthy credit growth. Domestic Net Interest Margin (NIM) improved to 3.48%, while Global NIM stood at 3.37%. Return on Assets (ROA) increased to 1.41%, and Return on Equity (ROE) improved to 22.69%, underlining the Bank’s enhanced profitability.
Strong Business Growth Across Deposits and Advances
Indian Overseas Bank continued its growth trajectory with total business reaching ₹6,98,325 crore, registering a 17.72% YoY increase.
Total deposits rose 13.72% to ₹3,76,193 crore, while total advances grew 22.75% to ₹3,22,132 crore, driven by robust lending across key segments. The Bank’s Retail, Agriculture and MSME (RAM) portfolio expanded 35.82% YoY, including 36.49% growth in Retail, 46.84% in Agriculture, and 16.15% in MSME, reflecting strong demand across priority sectors. Domestic CASA ratio remained healthy at 41.45%, while Global CASA stood at 41.05%.
Asset Quality Continues to Improve
The Bank further strengthened its balance sheet by improving asset quality during the quarter.
Gross Non-Performing Assets (GNPA) declined to 1.33%, while Net NPA reduced to 0.18%, among the lowest levels achieved by the Bank in recent years. Fresh slippages during the quarter stood at ₹195 crore, with the slippage ratio improving to a historic low of 0.06%.
Recovery performance remained strong, with total NPA recoveries of ₹654 crore, which was 3.35 times the quarterly slippages, highlighting effective recovery and risk management initiatives. The Provision Coverage Ratio (PCR) also improved to 97.67%, further strengthening the Bank’s asset quality profile.
Healthy Capital Position and Expanding Network
Indian Overseas Bank maintained a strong capital base with its Capital Adequacy Ratio (CRAR) improving to 19.36%, including a Tier-I Capital Ratio of 16.88%, well above regulatory requirements.
The Bank also expanded its domestic footprint to 3,522 branches by adding 28 new branches during the quarter, reinforcing its commitment to enhancing customer reach and financial inclusion across the country.
Key Financial Highlights – Q1 FY27
- Net Profit: ₹1,659 crore (▲49.32% YoY)
- Operating Profit: ₹2,693 crore (▲14.21% YoY)
- Net Interest Income (NII): ₹3,688 crore (▲34.30% YoY)
- Total Business: ₹6,98,325 crore (▲17.72% YoY)
- Total Deposits: ₹3,76,193 crore (▲13.72% YoY)
- Total Advances: ₹3,22,132 crore (▲22.75% YoY)
- Domestic NIM: 3.48%
- Global NIM: 3.37%
- ROA: 1.41%
- ROE: 22.69%
- Gross NPA: 1.33%
- Net NPA: 0.18%
- Provision Coverage Ratio: 97.67%
- Capital Adequacy Ratio (CRAR): 19.36%
- Domestic Network: 3,522 branches
Indian Overseas Bank’s strong first-quarter performance reflects its continued focus on sustainable business growth, improving profitability, robust capital position and disciplined asset quality management. With healthy growth in deposits, advances and earnings, the Bank remains well-positioned to maintain its growth momentum through the remainder of FY27.