Indian Overseas Bank Q3 net profit up 63% at ₹1,427 crore on higher income

Indian Overseas Bank posted a 63 per cent rise in net profit in the December quarter, supported by higher operating income, strong credit growth and a sharp improvement in asset quality

Chennai-based Indian Overseas Bank (IOB) posted a 63 per cent rise in net profit to Rs 1,427 crore in the quarter ended December 2025, compared with Rs 875 crore in the corresponding quarter a year earlier.

 

Total operating income rose 15 per cent to Rs 8,172 crore in the quarter ended December 2025 from Rs 7,116 crore in the same period last year.

 

The bank’s asset quality improved during the quarter under review. Gross non-performing assets declined by 101 basis points year-on-year to 1.54 per cent from 2.55 per cent in December 2024. Net NPAs also fell to 0.24 per cent in December from 0.42 per cent a year earlier. The slippage ratio for Q3 FY26 improved by 2 basis points year-on-year to 0.11 per cent.

 

The bank’s total business increased by Rs 1.01 trillion to Rs 6.44 trillion as of December 2025, registering year-on-year growth of 18.7 per cent.

 

CASA deposits grew 7.8 per cent year-on-year to Rs 1.43 trillion as of December 2025. The domestic and global CASA ratios stood at 41.29 per cent and 40.85 per cent, respectively. Retail term deposits rose 16.3 per cent to Rs 1.75 trillion.

 

Total deposits increased 14.5 per cent year-on-year to Rs 3.49 trillion.

 

Retail, agriculture and MSME credit grew by 43.04 per cent, 34.51 per cent and 17.42 per cent, respectively. The bank’s total advances increased 24.1 per cent year-on-year to Rs 2.95 trillion as of December 2025.

 

Total recovery for Q3 FY26 rose to Rs 890 crore from Rs 874 crore in Q2 FY26.