Indian Overseas Bank (IOB) Q3 25/26 earnings summary

Executive summary

• Achieved record net profit of ₹1,365 crore for Q3 FY26, up 56.18% year-over-year, with 11.34% sequential growth.

• Operating profit reached ₹2,603 crore, a record high, up 14.87% year-over-year.

• Advances increased 24.13% year-over-year to ₹294,974 crore, and deposits rose 14.48% year-over-year.

• Business mix for the nine months ended December 2025 grew 18.71% year-over-year to ₹644,276 crore.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

Financial highlights

• Net profit for Q3 FY26 was ₹1,365 crore, up from ₹874 crore in Q3 FY25; nine-month net profit at ₹3,70,259 lakhs, up from ₹2,28,364 lakhs year-over-year.

• Net Interest Income (NII) for Q3 FY26 was ₹3,299 crore, up 18.29% year-over-year.

• Operating income reached ₹4,798 crore, up 17.43% year-over-year; non-interest income at ₹1,499 crore, up 15.49%.

• Gross NPA ratio improved to 1.54% (down from 2.55% a year ago); Net NPA at 0.24%.

• Capital Adequacy Ratio (Basel III) at 16.30% as of December 31, 2025.

Outlook and guidance

• Credit growth expected to end FY26 at 24%-25%, among the highest in the sector.

• NIM expected to be maintained in the 3.3%-3.4% range going forward.

• CASA percentage to be maintained above 41%.

• Recovery for FY26 expected to exceed ₹4,000 crore.

• Bank maintains high provision coverage and forward-looking provisions for expected credit loss and contingencies.