Indian Overseas Bank reported a strong set of earnings for the quarter ended June 30, 2026, with net profit rising nearly 50% year-on-year, supported by robust growth in net interest income and an improvement in asset quality.
The state-owned lender posted a 49.3% year-on-year (YoY) increase in net profit at Rs 1,659 crore, compared with Rs 1,111 crore in the corresponding quarter last year.
Net interest income (NII) grew 34% to Rs 3,688 crore from Rs 2,746 crore a year ago.
The bank's asset quality improved sequentially, with gross non-performing assets (GNPA) declining to 1.33% from 1.42% in the March quarter, while net NPA eased to 0.18% from 0.21%.
Other income rose sharply to Rs 2,160 crore, compared with Rs 1,481 crore in the year-ago period.
Meanwhile, provisions stood at Rs 834 crore, broadly unchanged from Rs 844 crore a year earlier but lower than Rs 1,006 crore in the preceding quarter. Tax expense declined to Rs 200 crore from Rs 403 crore in the corresponding quarter last year.
The lender also said it is holding Rs 2,150 crore of provisions for the implementation of the Expected Credit Loss (ECL) framework.
Following the results, Indian Overseas Bank shares rose as much as 5.05% to an intraday high of Rs 35.52 apiece. At 1:15 pm, the stock was trading 3.22% higher at Rs 34.90. In comparison, the BSE Sensex was down 0.65% at 77,644.
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