CHENNAI: India’s public sector bank Indian Overseas Bank (IOB) reported all-time high of net profit of Rs 1,365 crore, up 56.18 percent year-on-year in Q3FY26, driven by rise in interest income and recovery of NPAs. The PSU bank reported Rs 874 crore during the same period in FY25.
Ajay Kumar Srivastava, CEO & MD at IOB said that the bank is planning Rs 4000 crore from markets through QIP in coming months, reducing the Centre’s stake in it around 4% if fully subscribed. The PSU bank’s CASA deposits registered a growth of 7.8 % YoY to Rs 1.43 lakh crore in the current quarter.
RAM (Retail, Agri. & MSME) business grew by 33.1% on Y-o-Y basis and total advance of the bank increased by 24.1% to Rs 2.95 lakh crore. Total Recovery for Q3FY26 increased to Rs 890 from Rs 874 crore for Q2FY26. Recovery from the written off accounts (technical write off & set off) for Q3FY26 stood at Rs 635 crore.
Srivastava said the bank has done the forward-looking provisioning of Rs 1,500 crore to meet expected credit loss (ECL) framework which will be effective from April 2027. “In the September 2025 quarters, the additional requirement was around Rs 2,600 crore and later came down to Rs 2,200 crore in the current quarter.
However, we have made Rs 1500 crore of additional provisioning under the ECL and balance Rs 1000 crore we will add to the kitty in the coming quarters.” The IOB has recruited nearly 4000 people and in the current calendar year over 1200 staff are in various of onboarding and nearly 200 people have already joined.