Indian Overseas Bank (IOB) Q2 25/26 earnings summary

Executive summary

• Achieved record net profit of INR 1,226 crore for Q2 FY26, a 57.8% year-on-year increase, with operating profit up 12.8% and net interest income up 20.5%.

• Business mix reached INR 6,17,034 crore, up 14.1% year-on-year, with advances growing 20.8% and deposits up 9.2%.

• Asset quality improved, with gross NPA ratio down to 1.83% and net NPA at 0.28%.

• Board approved unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2025, with no material misstatements noted.

• Added 2.1 million new customers in the last six months, with ongoing branch and digital expansion.

Financial highlights

• Net profit for Q2 FY26 at INR 1,226 crore, up from INR 777 crore in Q2 FY25; H1 FY26 net profit at INR 2,33,746 lakhs.

• Net interest income for Q2 FY26 was INR 3,059 crore, up 20.53% year-on-year; net interest margin improved to 3.21%.

• Operating profit for the quarter at INR 2,400 crore, up 12.8% year-on-year.

• Total income for H1 FY26 at INR 18,081 crore, up 8.6% year-on-year.

• Fee-based income for H1 FY26 increased 51.3% year-on-year to INR 1,405 crore.

Outlook and guidance

• Credit growth guidance remains at a minimum of 12%, with potential to reach 17-20% depending on market dynamics.

• No plans to revise guidance upward despite strong performance; targets are considered minimums.

• Transition to the new tax regime likely in Q3 or Q4 FY26.

• Continued focus on digital transformation, operational efficiency, and sustainable growth.

• Bank maintains high provision coverage and prudent risk management.