CHENNAI: Indian Overseas Bank (IOB) reported a 58% rise in net profit by Rs 449 crore to Rs 1226 crore in Q2 FY2026 compared to Rs 777 crore in the same period last year, recording its all-time highest profit. This is mainly driven by higher net interest income, which increased by 20.59% to Rs 3059 crore, and improved recovery of assets.
The bank’s operating profit stood at Rs 2400 crore as of September 30, increasing by Rs 272 crore against Rs 2128 crore on the same date last year.
“Net profit comes from interest income, which is driven by lending. Since our credit and interest income increased, net profit also increased,” said Ajay Kumar Srivastava, managing director and chief executive officer of IOB. The bank’s CASA amount reduced from Rs 144837 crore in June 2025 to Rs 137387 crore.
“To address this concern, the bank has decided to onboard more customers. In the last six months, the bank has onboarded 21 lakh individual customers and in the past 20 months, the bank has added 85 lakh customers,” he said.
The bank's total deposits have risen to Rs 339066 crore from Rs 330792 crore and total advances also increased to Rs 277968 crore from Rs 262421 crore in June.
The bank’s return of asset (ROA) has also improved to 1.20% in September from 0.82% in the same period last year. IOB’s total expenses, which include interest on deposits and borrowings, staff expenses etc., increased to Rs 6814 crore in Q2 FY26 from Rs 6356 crore in Q2 FY25.
The bank also aims to increase its advances in retail and agri sectors to Rs 1 lakh crore by the end of the financial year. The advances in retail and agri sectors stand at Rs 78765 crore and Rs 83023 crore, respectively.
Srivastava said, “To achieve this target, we will be coming out with new products. We added 104 new branches in the last year, taking the number of branches to 3373. We will use these branches to sell our new products.”