EL7.AI
StocksMediumUpdated×2•Originally published 26 October 2026•Updated 26 October 2026•
4 min read

Indian Overseas Bank’s standalone profit rises to 1,912 crore rupees in second quarter

Key Facts

1Standalone net profit was 1,912 crore rupees for the quarter ended September 30, 2026, compared with 1,226 crore rupees a year earlier.
2Interest income rose 17% to 9,201 crore rupees from 7,849 crore rupees in the year-earlier period.
3The gross non-performing asset ratio improved to 1.19% from 1.83% a year earlier.
4The RAM segment grew 34.51% year on year, with retail growth of 33.77%, agriculture growth of 47.31% and micro, small and medium enterprises growth of 13.80%.
5The bank aims to raise an additional $500 million before the borrowing window closes in December.

Indian Overseas Bank reported standalone net profit of 1,912 crore rupees for the quarter ended September 30, 2026, compared with 1,226 crore rupees in the year-earlier period, according to results data cited by PTI and published by Business Standard. Interest income rose 17% to 9,201 crore rupees from 7,849 crore rupees a year earlier. NDTV Profit said interest earned on advances increased 21% year on year to 7,083 crore rupees, linking interest-income growth to core lending. On margins, domestic net interest margin rose 14 basis points year on year to 3.49%, while global net interest margin increased 16 basis points to 3.37%, according to the bank’s statement. The results came as the bank recorded growth in credit and deposits, alongside an improvement in non-performing loan indicators.

Gross advances rose 24.35% year on year to 3.45 trillion rupees, while deposits increased 20% to 4.07 trillion rupees, according to figures reported by Financial Express. By business segment, retail expanded 33.77%, agriculture 47.31% and micro, small and medium enterprises 13.80%, taking combined RAM segment growth to 34.51%, according to the bank’s statement. The figures show the sources of business expansion, with growth spanning lending in the three sectors that make up RAM. Domestic net interest margin also rose to 3.49%, placing advances growth alongside an improved margin. Other income, meanwhile, did not follow the direction of interest income, falling 10.2% year on year to 1,227 crore rupees, according to NDTV Profit.

Lower taxes were an important factor in the gap between net profit growth and pre-tax profit growth. Profit before tax rose 19.6% year on year to 2,066 crore rupees, while tax expenses fell 69% to 154 crore rupees from 501 crore rupees in the year-earlier quarter, according to NDTV Profit. The comparison shows that the decline in taxes coincided with growth in pre-tax profit and helped lift net profit to 1,912 crore rupees. On asset quality, the gross non-performing asset ratio improved to 1.19% from 1.83% a year earlier, according to Business Standard. The provision coverage ratio stood at 97.69% in the September quarter, compared with 97.48% a year earlier, according to the bank’s statement.

Ajay Kumar Srivastava, the bank’s managing director and chief executive, said his ambition and internal mandate were for net profit to grow by at least 25% to 30% annually, according to Financial Express. He added that the bank expected credit and deposit growth of about 20% to 21% in fiscal 2026-2027, based on performance in the first six months and the upcoming festive season. The report said the bank had already raised about $200 million through the Reserve Bank of India’s external commercial borrowing window and aims to raise an additional $500 million before the window closes in December. Economic Times also reported that the additional $500 million borrowing plan would be carried out in two equal tranches before the end of December, using a concessional swap facility from the central bank. Srivastava said: "Our ambition and internal mandate is for net profit to grow by at least 25% to 30% every year."

The stock moved higher during the October 26 session after the board approved the results, and closed up 6% at 30.41 rupees on the NSE, according to Financial Express. During the session, the highest reported gain was 5.3%, at a price of 30.20 rupees, according to NDTV Profit. In his fiscal-year outlook, Srivastava said the bank expected credit and deposit growth of between 20% and 21%, following the first six months’ performance, and pointed to the upcoming festive season. This guidance places business growth and planned financing among the bank’s next steps, while the additional external borrowing tranche is due before the window closes in December. These targets and forecasts remain attributed to the bank’s management and the reports that cited it, while the profit, margin and non-performing loan figures reflect the quarter ended in September.