State-owned Indian Overseas Bank(IOB) reported a 43.2 per cent increase in net profit year-on-year to ₹1,505 crore for the fourth quarter of FY26, compared with ₹1,051 crore in the year-ago period, aided by a rise in net interest income (NII) coupled with a fall in provisions.
Net interest income (NII) for the quarter stood at ₹3,470 crore, up 11.1 per cent year-on-year and 5.2 per cent sequentially.
Provisions and contingencies declined 5.4 per cent year-on-year to ₹1,006 crore from ₹1,063 crore in Q4 FY25.
Operating profit before provisions and contingencies increased 1.8 per cent year-on-year to ₹2,665 crore.
Other income declined 18.4 per cent year-on-year to ₹1,291 crore and fell 13.9 per cent sequentially.
“During the fourth quarter, we incurred a treasury loss of about ₹555 crore, largely on account of mark-to-market and revaluation impacts. For the full financial year, treasury losses stood at around ₹380 crore,” said Ajay Kumar Srivastava, managing director and chief executive officer (CEO) of Indian Overseas Bank.
Net interest margin (NIM) moderated during the quarter, with domestic NIM declining to 3.35 per cent from 3.77 per cent a year ago (down 42 basis points) and global NIM easing to 3.25 per cent from 3.58 per cent (down 33 basis points). On a sequential basis, both domestic and global NIMs declined by 7 basis points.
On the asset quality front, gross non-performing assets (GNPA) declined 17.5 per cent year-on-year to ₹4,410 crore, while net NPAs fell 30.1 per cent to ₹638 crore. In percentage terms, the GNPA ratio improved to 1.42 per cent from 2.14 per cent a year ago, while the net NPA ratio eased to 0.21 per cent from 0.37 per cent.
On the business front, total advances grew 24.2 per cent year-on-year to ₹3.10 trillion, driven by 34.9 per cent growth in retail, agriculture, and MSME (RAM) loans.
Deposits rose 18 per cent year-on-year to ₹3.68 trillion, of which current account and savings account deposit growth was 10.85 per cent.
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