Indian Overseas Bank Q3 Profit Climbs To ₹723 Crore, Driven By Steady NII, 9M Net Rises 25% To ₹2,079 Crore

Chennai: Indian Overseas Bank delivered a consistent performance for the third consecutive quarter in FY26, with improved profitability, controlled credit costs, and healthier asset quality metrics.

Net profit up despite flat income
IOB reported a net profit of ₹723 crore in Q3 FY26, compared to ₹647 crore in the same period last year. While net interest income for Q3 remained nearly flat at ₹2,387 crore versus ₹2,394 crore in Q2, profit growth was driven by sharply reduced provisions, which fell to ₹388 crore from ₹493 crore sequentially .

Quarterly momentum sustained
Compared to ₹667 crore in Q2 and ₹689 crore in Q1, the Q3 bottom line shows consistent earnings growth across the year. Operating profit for Q3 came in at ₹1,274 crore, slightly below ₹1,356 crore in Q2 but ahead of ₹1,216 crore in Q1, indicating sustained core strength despite margin pressure.

Asset quality improves
Gross NPA declined to 3.90% in Q3 from 4.29% in Q2 and 4.44% in Q1. Net NPA improved to 0.54% from 0.66% in Q2 and 0.70% in Q1. The provision coverage ratio remained robust at 95.23%, underscoring IOB’s prudent credit risk management.

9M profit sees double-digit rise
For the nine-month period of FY26, IOB reported a 25% year-on-year increase in net profit to ₹2,079 crore, compared to ₹1,662 crore in the previous year. Operating profit for the same period touched ₹3,846 crore, while the bank’s cost-to-income ratio improved, indicating efficient expense control.

IOB’s Q3 performance reinforces its turnaround story, as the bank continues to deliver consistent growth with strong asset quality and disciplined provisioning.