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Informist, Wednesday, Apr. 29, 2026

By Cassandra Carvalho

MUMBAI – Indian Overseas Bank Wednesday reported a 43% on-year rise in its net profit for the quarter ended March as its tax outgo declined over 69% and employee expenses fell 11%. The state-owned lender posted a tepid growth in its revenue with its growth in interest earned at a 14-quarter low, and reported an 18% on-year fall in its other income. Barring the fall in tax outgo, the bank's profit for the reporting quarter was up merely 6.7% on year. As of 1343 IST, shares of the lender were up 1.2% at INR 35.40 on the National Stock Exchange.

The bank made a net profit of INR 15.05 billion in the March quarter, up from INR 10.51 billion in the year-ago quarter. Sequentially, its profit after tax was up 10%. The bank's profit before tax was INR 16.59 billion in the reporting quarter, slightly up from INR 15.54 billion in the year-ago quarter and up 21% from the trailing quarter. Tax payments made by the lender fell to INR 1.54 billion in Jan-Mar, from INR 5.03 billion in the year-ago period. 

The bank's total income rose 6.1% on year to INR 97.80 billion in the reporting quarter, the slowest growth in four quarters. Of this, interest earned rose 11% on year to INR 84.89 billion. Other income of the bank fell 18% on year to INR 12.91 billion, and down nearly 14% sequentially. 

Employee expenses fell to INR 10.06 billion, from INR 11.32 billion in the year-ago period. Total expenses were flat sequentially, and up nearly 8% on year. In 2025-26 (Apr-Mar), the lender's expenses were up over 10% on year. In FY26, the bank's total income rose 11.5% on year to INR 375.32 billion, while its interest earned rose over 13%. Its net profit rose over 56% on year to INR 52.08 billion. 

The bank's asset quality improved. Provisions were down over 5% on year to INR 10.06 billion in Jan-Mar, and fell 18.6% from the quarter ago. Gross non-performing assets fell 17.5% on year to INR 44.10 billion. On a net basis, the bank's non-performing assets were down over 30% on year and nearly 10% on quarter. Subsequently, the bank's gross non-performing asset ratio fell to 1.42% as of Mar. 31 from 1.54% as of Dec. 31. The net non-performing asset ratio inched lower to 0.21% as of Mar. 31 from 0.24% the previous quarter. Provision coverage ratio of the bank was 97.50% as on Mar. 31, up 20 basis points on year. 

The bank's net interest income rose 11% on year to INR 34.70 billion in Jan-Mar. Its global net interest margin was 3.25% as of Mar. 31, down 7 bps on quarter. On year, the bank recorded a loan growth of 24% and a deposit growth of 18%. On quarter, its pace of deposit growth largely matched that of advances, both up over 5%. Deposits were INR 3.68 trillion as of Mar. 31, while loans were INR 3.10 trillion. The bank's global current account savings account ratio was 40.99% as of Mar. 31, down 266 bps on year and up 14 bps on quarter. Its retail, agriculture and micro, small and medium enterprises business was up 34.91% on year.

The bank's credit cost fell 14 bps on quarter to 0.30%. Its capital adequacy ratio was 19.78% as of Mar. 31. Recoveries from written-off accounts including technical write-offs in the March quarter were INR 5.64 billion. Total slippages for the reporting quarter were INR 3.66 billion. The bank added 159 branches in FY26, it said in a press release.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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