IOB profit rose 56% year on year to ₹1,912 crore in the quarter ended September 30, 2026, supported by higher interest income. Indian Overseas Bank announced the second-quarter FY27 results on October 26, alongside an improvement in its gross bad-loan ratio.
Key Takeaways
- Net profit grew substantially faster than interest income, which increased 17%.
- The gross non-performing asset ratio fell to 1.19% from 1.83% a year earlier.
- IOB shares traded 4.56% higher on the BSE; the quoted price was not a closing figure.
Table of Contents
IOB profit growth outpaces interest income
The public-sector bank’s net profit increased from ₹1,226 crore in July–September 2025 to ₹1,912 crore in the corresponding quarter of fiscal 2026–27. Interest income reached ₹9,201 crore, compared with ₹7,849 crore a year earlier.
The bank’s board-meeting disclosure page lists a prior intimation for unaudited financial results covering the quarter and half year ended September 30, 2026. That notice identifies the reporting period rather than substantiating the announced earnings figures.
Interest income is distinct from net interest income, which deducts interest paid on deposits and other funding. The available figures do not establish how funding costs, operating expenses or provisions contributed to profit growth exceeding the increase in interest income.
| Item | Details |
|---|---|
| Increase in quarterly net profit | ₹686 crore year on year. |
| Increase in quarterly interest income | ₹1,352 crore year on year. |
| Reduction in gross NPA ratio | 64 basis points year on year. |
Bad-loan ratio declines as shares trade higher
Gross non-performing assets represented 1.19% of gross advances in Q2 FY27, down from 1.83% in Q2 FY26. The decline indicates a smaller proportion of lending classified as non-performing, but the ratio alone does not establish whether the absolute stock of bad loans fell.
IOB shares were trading at ₹30.01 on the BSE on October 26, up 4.56% from the previous close. The trading snapshot accompanied the earnings announcement, but does not establish a single cause for the share-price rise.
Conclusion
IOB’s September-quarter results combined stronger earnings with a lower gross bad-loan ratio. A fuller assessment of the profit increase would require the funding-cost and provisioning breakdown, which the available figures do not provide.
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