Indian Overseas Bank Posts 43% Year-Over-Year Increase in Net Profit to ₹1,505 Crore
Indian Overseas Bank Reports 43.2% YoY Rise in Net Profit for Q4FY26
Indian Overseas Bank (IOB) announced its financial results for the quarter ending on March 31, 2026 (Q4FY26) on Wednesday, April 29. The announcement came during market hours, resulting in a rise of nearly 1.32% in IOB's share price to ₹35.10 apiece on the NSE.
IOB's net profit for Q4FY26 rose 43.2% year-on-year (YoY) to ₹1,505 crore, driven by lower provisions. The company's provisions for the quarter fell to ₹1,005 crore, down from ₹1,235 crore in the December quarter last year. IOB's Net Interest Income (NII), a key indicator of its core income, increased 11.1% from the corresponding quarter last year to ₹3,470 crore, compared with ₹3,123 crore in the same period a year ago.
| IOB Q4FY26 vs. Q4FY25 | Q4FY26 | Q4FY25 | % Change |
|---|---|---|---|
| Net Profit | ₹1,505 crore | ₹1,048 crore | 43.2% |
| Net Interest Income (NII) | ₹3,470 crore | ₹3,123 crore | 11.1% |
| Provisions | ₹1,005 crore | ₹1,235 crore | -18.7% |
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
IOB's asset quality improved sequentially, with the gross Non-Performing Asset (NPA) ratio easing to 1.42% from 1.54%, and the net NPA ratio declining to 0.21% from 0.24%. In absolute terms, gross NPAs reduced to ₹4,409 crore from ₹4,529 crore in December, while net NPAs improved to ₹637 crore from ₹707 crore.
IOB reported an operating profit of ₹2,665 crore in Q4 FY26, compared to ₹2,618 crore last year, marking a modest year-on-year growth of 1.8%. Provisions stood at ₹1,006 crore in Q4 FY26, declining from ₹1,235.7 crore in Q3 FY26.
The company reported a total income of ₹37,532 crore for FY26, marking an 11% increase compared to ₹33,676 crore in FY25, reflecting steady growth in its overall financial performance during the year.
IOB's share price has remained volatile amid weak market sentiments. The banking stock has gained 9.38% in a month, however, has fallen over 3% in year-to-date (YTD) basis. Furthermore, the banking stock has descended 8.14% in the last one year and has delivered 36.51% gains in three years. Zooming out further, the stock has proven to be a multibagger stock by soaring over 122.21% in five years.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Investor Takeaway
Investors should take note of the improvement in asset quality and the increase in net profit for IOB.
More in Market
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Indian Stocks to Watch: BHEL, Agarwal Industrial, JBM Auto, Rajesh Exports, Indian Energy Exchange, Lenskart Solutions in Market Focus on June 4.
