The bank’s operating performance remained stable, with operating profit increasing marginally by 1.8 percent YoY to Rupees 2,665 crore in Q4 FY26. |
Mumbai: Indian Overseas Bank (IOB) reported a 43 percent year-on-year rise in net profit to Rupees 1,505 crore in Q4 FY26, compared to Rupees 1,051 crore in Q4 FY25, supported by steady improvement in core income. On a sequential basis, profit grew 10 percent from Rupees 1,365 crore in Q3 FY26, indicating sustained quarterly momentum. Net interest income also rose to Rupees 3,470 crore during the quarter, reflecting stable operating performance. The bank’s operating performance remained stable, with operating profit increasing marginally by 1.8 percent YoY to Rupees 2,665 crore in Q4 FY26. Sequentially, operating profit rose 2.4 percent from Rupees 2,603 crore in Q3 FY26. Net interest income (NII) grew 11.1 percent YoY and 5.2 percent QoQ to Rupees 3,470 crore, indicating steady growth in core lending income. The cost-to-income ratio improved to 44.02 percent from 44.35 percent a year ago, reflecting efficiency gains. Sequential growth remained consistent across key parameters. Net profit rose by Rupees 140 crore QoQ (Rupees 1,505 crore vs Rupees 1,365 crore), while NII increased by Rupees 171 crore from Rupees 3,299 crore in Q3 FY26. Margins, however, showed slight moderation, with domestic NIM declining to 3.35 percent from 3.42 percent in the previous quarter. Asset quality continued to improve, with gross NPA declining to 1.42 percent from 2.14 percent a year earlier and net NPA easing to 0.21 percent.Business growth remained strong during the quarter, with total business rising 20.76 percent YoY to Rupees 6.79 lakh crore. Total deposits increased 18.03 percent to Rupees 3.68 lakh crore, while advances grew 24.16 percent to Rupees 3.10 lakh crore. CASA deposits rose 10.85 percent YoY to Rupees 1.51 lakh crore, supporting funding stability.
For the full year FY26, net profit jumped 56.16 percent to Rupees 5,208 crore compared to Rupees 3,335 crore in FY25. Operating profit for the year stood at Rupees 10,026 crore, while NII rose to Rupees 12,574 crore, reflecting continued earnings strength.
Disclaimer: This article is based on limited disclosed data and is not a complete UFR analysis or investment advice.