Indian Overseas Bank, the state-run lender, reported decent earnings growth in the second quarter of FY27, with a sharp jump in net profit and improvement in asset quality.
The PSU bank reported a net profit of Rs 1,912.42 crore in the September quarter, registering a growth of 56% from Rs 1,226.42 crore in the year-ago period.
Net Interest Income (NII), the difference between interest earned and interest paid, in Q2FY27 grew 26.4% to Rs 3,867 crore from Rs 3,059 crore, year-on-year (YoY).
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Pre-Provisions Operating Profit (PPOP) increased 25.7% to Rs 3,016.49 crore from Rs 2,400 crore, YoY.
Provisions during the September quarter rose to Rs 950.08 crore from Rs 672.45 crore in the year-ago period, and from Rs 834.03 crore in the June quarter.
The bank's Capital Adequacy Ratio in September quarter was at 18.60% as against 19.36% QoQ and against 17.94% YoY.
Asset Quality Improves
Asset quality of Indian Overseas Bank improved during the quarter ended September 2026.
Gross Non-Performing Assets (NPA) in Q2FY27 fell 4.14% to Rs 4,114.41 crore from Rs 4,292.26 crore quarter-on-quarter (QoQ). Net NPA decreased 7.6% to Rs 543.58 crore from Rs 588.42 crore, sequentially.
Gross NPA as a percent of gross advances declined to 1.19% from 1.33% QoQ, while Net NPA ratio dropped to 0.16% from 0.18% QoQ.
Indian Overseas Bank share price jumped after the announement of Q2 results today. At 1:10 PM, Indian Overseas Bank stock traded 3.45% higher at Rs 29.69 apiece on the BSE.
ALSO READ: Catch Q2 Results Live Updates Here
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