Earnings Review
Indian Overseas Bank Q3 PAT jumps YoY on sharply lower tax
This story was originally published at 19:07 IST on 14 January 2026
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--Indian Overseas Bk Oct-Dec net profit INR 13.65 bln
--Indian Overseas Bk Oct-Dec net profit INR 13.65 bln vs INR 8.74 bln yr ago
--Indian Overseas Bk Oct-Dec total income INR 96.72 bln vs INR 84.09 bln
--Indian Overseas Bk Oct-Dec provisions INR 12.36 bln vs INR 10.29 bln yr ago
--Indian Overseas Bk Apr-Dec net profit INR 37.03 bln vs INR 22.84 bln yr ago
--Indian Overseas Bk Apr-Dec total income INR 277.52 bln vs INR 244.61 bln
--Indian Overseas Bk gross NPA ratio 1.54% as on Dec 31 vs 1.83% quarter ago
--Indian Overseas Bk Q2 NPA provisions INR 3.08 bln vs INR 4.00 bln yr ago
--Indian Overseas Bk net NPA ratio 0.24% as on Dec 31 vs 0.28% quarter ago
--Indian Overseas Bk Basel-III capital adequacy ratio 16.30% as on Dec 31
--Indian Overseas Bank Oct–Dec domestic NIM 3.42% vs 3.35% qtr ago
--Indian Overseas Bank Q3 net interest income INR 32.99 bln, up 18.3% on year
--Indian Overseas Bank total advances INR 2.95 tln on Dec 31, up 24.1% on year
--Indian Overseas Bank total deposits INR 3.49 tln on Dec 31, up 14.5% on year
--Indian Overseas Bank Oct–Dec credit cost 0.44% vs 0.70% year ago
--Indian Overseas Bank CASA ratio 40.85% as on Dec 31 vs 40.52% qtr ago
--Indian Overseas Bank Oct–Dec slippages INR 3.01 bln vs INR 2.84 bln year ago
--Indian Overseas Bank Oct–Dec write-off INR 6.01 bln vs INR 2.19 bln year ago
By Divya Moolayattil
MUMBAI - Indian Overseas Bank's net profit for the December quarter rose 56% on year to INR 13.65 billion due to a sharp fall in tax outgo despite rise in provisions. The bank's tax outgo dropped sharply as it opted for the lower tax rate regime.
The bank's profit before tax for the quarter was up 11% on year. The lender's tax expense for the December quarter was INR 23.3 million compared with INR 3.64 billion in the year ago quarter. The bank opted for a tax rate of 25.17% as compared with 34.94% tax rate earlier.
The bank's provisions for the December quarter were INR 12.36 billion, up over 20% on year. Sequentially, the provisions rose nearly 84% from INR 6.72 billion. Provisions for non-performing assets in the reporting quarter fell 23% on year to INR 3.08 billion but rose 153% on quarter.
The bank's net interest income rose 18% on year to nearly INR 33 billion. The lender's other income for the December quarter was around INR 15 billion, up nearly 16% on year and nearly 10% on quarter. Total income for the quarter rose 15% on year and nearly 5% on quarter to INR 96.72 billion.
The lender's net interest margin was up 11 basis points on quarter at 3.32%. Its NIM improved as cost of deposits fell 13 bps on quarter.
Operating expenses of the bank were INR 21.94 billion, up 20.6% on year. Total expenses of the bank rose 15% on year to INR 70.68 billion. Credit cost for the December quarter fell to 0.44% compared with 0.70% in the year ago quarter.
Total deposits of the bank grew 14.5% on year to INR 3.49 trillion during the December quarter. Advances rose 24.1% on year to INR 2.95 trillion. Bank's current account and savings account deposits rose nearly 8% on year to INR 1.43 trillion.
The lender's write-off in the December quarter rose to INR 6.01 billion from INR 2.19 billion a year ago. Fresh slippages rose 6% on year to INR 3.01 billion.
The bank's gross non-performing asset ratio for the December quarter improved to 1.54% from 1.83% a quarter ago. The net non-performing asset ratio improved to 0.24% from 0.28% a quarter ago.
For the nine months ended December, the bank's net profit rose 62% on year to INR 37.03 billion and total income rose 13% on year to INR 277.52 billion. Wednesday, shares of the bank closed at INR 36.11 on the National Stock Exchange, up 2%. End
Edited by Ashish Shirke
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