Indian Overseas Bank Q3 Profit Surges 56% on Robust NII Growth
Overview
Indian Overseas Bank reported a stellar third quarter for FY26, with net profit jumping 56.2% to ₹1,365 crore. Net interest income climbed 18.3% to ₹3,298.5 crore, signaling strong operational performance. The lender also enhanced its asset quality, reducing gross NPAs to 1.54% and net NPAs to 0.24%, bolstering investor confidence.
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Profitability Surge
Indian Overseas Bank (IOB) shares saw a notable climb of approximately 4% following the announcement of its robust third-quarter results for FY26. The state-owned lender posted a significant 56.2% year-on-year surge in net profit, reaching ₹1,365 crore. This performance contrasts sharply with the ₹873.7 crore net profit recorded in the corresponding period last fiscal year, indicating substantial operational and financial improvements.
Net Interest Income Growth
Complementing the profit surge, IOB's net interest income (NII) demonstrated healthy expansion, rising 18.3% year-on-year. The bank reported an NII of ₹3,298.5 crore for the quarter, up from ₹2,789 crore in the prior year. This growth in core lending income is a key indicator of the bank's ability to efficiently manage its assets and liabilities.
Asset Quality Strengthens
The bank's financial health was further reinforced by improvements in its asset quality. Gross non-performing assets (GNPAs) saw a reduction, standing at 1.54% by the end of the quarter, down from 1.83% in the previous quarter. Similarly, net non-performing assets (NNPAs) declined to 0.24% from 0.28% quarter-on-quarter. These figures reflect a stronger balance sheet and reduced credit risk, which are typically viewed positively by investors and rating agencies.
