Indian Overseas Bank (IOB) announced its financial results for the quarter and half-year ending September 30, 2025. The bank’s net profit soared to Rs 1,226 crores, marking a 57.79% increase from Rs 777 crores in the same period of 2024. This significant growth highlights the bank’s robust performance over the past year.

IOB’s operating profit also saw an upward trend, increasing by 12.78% year-on-year to Rs 2,400 crores in Q2FY26 from Rs 2,128 crores in Q2FY25. The Net Interest Income (NII) rose by 20.53% to Rs 3,059 crores compared to Rs 2,538 crores in the previous year’s quarter. These figures underscore the bank’s strong financial health.

The bank’s asset quality improved significantly. The gross non-performing assets (GNPA) ratio decreased by 89 basis points to 1.83% as of September 30, 2025, from 2.72% a year earlier. The Net NPA ratio also fell by 19 basis points to 0.28%. IOB’s provision coverage ratio increased to 97.48% from 97.06% in Q2FY25.

IOB’s Net Interest Margin (NIM) was recorded at 3.35%, an increase of 14 basis points from the previous year’s figure of 3.21%. The cost-to-income ratio improved as well, dropping by 321 basis points to 45.76% from last year’s 48.97%. Return on Equity (ROE) rose by 305 basis points to reach 19.95%, while Return on Assets (ROA) increased by 38 basis points to stand at 1.20%.

The total business of IOB expanded by 14.10% year-on-year, reaching Rs 6,17,034 crores as of September 30, 2025, up from Rs 5,40,801 crores a year ago. Total deposits grew by 9.15% to Rs 3,39,066 crores in Q2FY26 compared to Rs 3,10,652 crores in Q2FY25.

The bank’s gross advances surged by 20.78% year-on-year to Rs 2,77,968 crores from Rs 2,30,149 crores in the same quarter last year. Current Account Savings Account (CASA) grew by 4.19%, reaching Rs 1,37,387 crores as of September-end compared to Rs 1,31,856 crores a year earlier.

Branch Expansion and Customer Touchpoints

IOB expanded its domestic branch network from 3,269 branches on September 30, 2024, to 3,373 branches a year later. Of these branches, a significant portion—58%—are located in rural and semi-urban areas. The number of ATMs and cash recyclers increased from 3,501 to 3,567 during this period.

The bank also saw growth in its business correspondent network from 8,023 branches on September-end last year to reach a total of 11,467 branches this year. As of September-end this year, IOB had a total of 18,407 customer touchpoints across various locations.

Recovery and Credit Metrics

During Q2FY26, IOB reported a credit cost of just 0.18%, with a slippage ratio remaining steady at 0.11%. Recovery from written-off accounts amounted to Rs 461 Crore for the quarter ending September-end this year. Total recovery for the quarter increased to Rs 874 Crore compared to Rs 851 Crore as of June-end this year.

The CASA Ratio stood at an impressive level of 40.52%, while the Credit to Deposit (CD) Ratio was recorded at a healthy rate of 81.98%. These metrics reflect the bank’s efficient management and strategic focus on maintaining financial stability.

Overall, Indian Overseas Bank has demonstrated strong financial performance with significant improvements across various metrics and continued expansion efforts.