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Informist, Monday, Jul. 20, 2026

 

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--Indian Overseas Bk Apr-Jun total income INR 109.38 bln vs INR 88.66 bln 
--Indian Overseas Bk provision coverage ratio 97.67% on Jun 30 
--Indian Overseas Bk Apr-Jun net profit INR 16.59 bln vs INR 11.11 bln yr ago 
--Indian Overseas Bk basel-III capital adequacy ratio 19.36% on Jun 30 
--Indian Overseas Bk net NPA ratio 0.18% on Jun 30 vs 0.21% quarter ago 
--Indian Overseas Bk Apr-Jun total income INR 109.38 bln 
--Indian Overseas Bk gross NPA ratio 1.33% on Jun 30 vs 1.42% quarter ago 
--Indian Overseas Bk Apr-Jun provisions INR 8.34 bln vs INR 8.44 bln yr ago 
--Indian Overseas Bk Apr-Jun net profit INR 16.59 bln 
--Indian Overseas Bk Q1 net interest income INR 36.88 bln, up 34.3% on yr 
--Indian Overseas Bk Q1 domestic net interest margin 3.48% vs 3.35% qtr ago 
--Indian Overseas Bk Q1 global net interest margin 3.37% vs 3.25% qtr ago 
--Indian Overseas Bk domestic CASA ratio 41.45% on Jun 30 
--Indian Overseas Bk global CASA ratio 41.05% on Jun 30 
--Indian Overseas Bk Apr-Jun total slippages INR 1.95 bln 
--Indian Overseas Bk total NPA recovery INR 6.54 bln in Apr-Jun 
--Indian Overseas Bk total deposits INR 3.76 tln on Jun 30, up 13.7% YoY 
--Indian Overseas Bk total advances INR 3.22 tln on Jun 30, up 22.8% YoY

 

By Priyasmita Dutta

 

NEW DELHI – Indian Overseas Bank reported a robust growth in its net profit for the June quarter on the back of a nine-quarter high on-year jump in total income. The bank's net profit was, however, capped by a steep rise in expenses. 

 

Indian Overseas Bank reported net profit of INR 16.59 billion for the June quarter, up over 49% on year and over 10% on quarter. This was led by an over 23% rise in total income at INR 109.38 billion. The bank's interest income rose 19% on year, the highest pace in eight quarters, to INR 87.78 billion. The bank's other income also jumped sharply, up 46% on year to INR 21.60 billion. The jump in other income was also at the highest pace in seven quarters. 

 

Sequentially, the bank's interest income rose 3.4%, and other income rose 67%. The bank reported its financial results during market hours, and at 1328 IST, shares of the bank were at INR 34.84 on the National Stock Exchange, up 3% from the previous close.

 

The bank's net interest income during the quarter ended June was INR 36.88 billion, up over 34% on year. The domestic net interest margin was 3.48% at the end of June, higher than 3.35% end of March. The global net interest margin was 3.37% end of June, compared with 3.25% end of March.

 

The healthy income coincided with the bank's credit and deposit growth during the quarter outpacing the systemic average. Its advances grew over 23% on year to INR 3.22 trillion, while deposits grew nearly 14% on year to INR 3.76 trillion. The Reserve Bank of India's latest data showed loans of all scheduled commercial banks were up nearly 19% on year as on Jun. 30, and deposits rose over 13%.

 

The bank's domestic current account savings account ratio was 41.45% as on Jun. 30, while the global current account savings account ratio was 41.05%. The domestic current account savings account ratio was 271 basis points lower on year and 1 basis point lower on quarter. The global current account savings account ratio, on the other hand, was 273 bps lower on year and 6 bps higher on quarter.

 

The lender's bottom line also got a huge boost from a sharp fall in the tax outgo. The public sector bank's tax outgo during the June quarter was down over 50% on year at INR 2.0 billion. Sequentially, it was up over 30%. 

 

The bank's net profit, although very healthy, could have been much better had it not been for a 27% rise in total expenses on a year-on-year basis. The bank's total expenses totalled INR 82.45 billion, up 16% sequentially. The on-year rise in total income was the sharpest in nine quarters, data available with Informist showed. Within total expenses, employee costs shot up, rising 80% on year and more than doubling from the trailing quarter to INR 21.05 billion. The bank's other operating expenses also rose sharply on year by 49% to INR 10.50 billion.

 

Interest expended, the biggest chunk of total expenses, was up nearly 10% on year and 1.4% on quarter at INR 50.90 billion during Apr-Jun.

 

To balance the sequential rise in tax outgo, the bank's provisions fell steadily on a quarter-on-quarter basis during Apr-Jun. India Overseas Bank's provisions fell to INR 8.34 billion, down 17% sequentially. It was only marginally lower than in the year-ago quarter. 

 

The fall in provisions was in line with the improvement in asset quality. The state-owned bank's gross non-performing asset ratio fell to 1.33% from 1.42% at the end of March and 1.97% at the end of June last year. Net NPAs, on the other hand, fell to 0.18% from 0.21% in the trailing quarter and 0.32% in the corresponding quarter a year ago. 

 

Indian Overseas Bank's total slippages during the June quarter were INR 1.95 billion. The slippage ratio was at a historic low at 0.06% for the quarter ended June, the bank said in a press release. The state-owned bank's total NPA recovery was to the tune of INR 6.54 billion during Apr-Jun, 3.35 times the quarterly slippages, the bank said.

 

The bank's provision coverage ratio at the end of June was 97.67%, and its capital adequacy ratio was 19.36%, lower than the 19.78% at the end of March, but higher than 18.28% at the end of June last year.  End

 

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

 

Edited by Avishek Dutta and Akul Nishant Akhoury

 

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