Mumbai: Public sector lender Indian Overseas Bank (IOB) reported a 56 percent year-on-year increase in consolidated net profit to Rs 1,962.67 crore for the second quarter ended September 30, 2026, compared with Rs 1,258.82 crore in the corresponding quarter last year.
The bank's consolidated total income increased 13 percent to Rs 10,427.88 crore from Rs 9,216.33 crore a year earlier, according to its regulatory filing on Monday.
Interest Income Registers Growth
Interest earned during the quarter increased 17.2 percent to Rs 9,201.23 crore from Rs 7,850.89 crore in the year-ago period.
However, other income declined to Rs 1,226.65 crore from Rs 1,365.44 crore.
The bank's operating profit before provisions and contingencies rose 25.6 percent to Rs 3,016.49 crore from Rs 2,401.52 crore.
Profit Improves Sequentially
On a quarter-on-quarter basis, consolidated net profit increased 14.4 percent from Rs 1,716.29 crore in the April-June quarter.
Total income, however, declined 4.7 percent sequentially from Rs 10,937.80 crore.
Operating profit increased 12 percent from Rs 2,693.10 crore in the preceding quarter.
Provisions and contingencies stood at Rs 950.08 crore, compared with Rs 672.46 crore in the corresponding quarter last year.
Half-Year Profit Rises 51 percent
For the first half of FY27, consolidated net profit increased 50.9 percent to Rs 3,678.96 crore from Rs 2,437.27 crore in the same period last year.
Total income during the six-month period rose 18.2 percent to Rs 21,365.68 crore from Rs 18,084.21 crore.
Asset Quality And Provisions
On a standalone basis, gross non-performing assets declined to 1.19 percent of advances from 1.83 percent a year earlier.
Net NPA improved to 0.16 percent from 0.28 percent, while the provision coverage ratio stood at 97.69 percent as of September 30, 2026.
The bank maintained a forward-looking provision of Rs 2,700 crore under the expected credit loss framework.
It also disclosed a Rs 723.99 crore revaluation gain on government-guaranteed security receipts.
The bank's board approved the unaudited financial results at its meeting held on October 26.
Disclaimer: This report is based on unaudited financial results filed by the company and does not constitute investment advice.
