Ajay Kumar Srivastava, Managing Director & CEO, Indian Overseas Bank , at a press conference in Chennai
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Net profit of Indian Overseas Bank (IOB) grew 49 per cent YoY and stood at ₹1,659 crore for the quarter ended June 2026 (Q1FY27) driven by growth of net interest income, higher recoveries, and lower tax expense. Asset quality of the public sector bank also improved.Net interest income (NII) increased by 34.3 per cent YoY to ₹3,688 crore in Q1FY27. Domestic NIM (net interest margin) increased to 3.5 per cent while Global NIM increased to 3.37 per cent.The bank’s total business increased by 17.7 per cent to ₹6,98,325 crore with a total deposits growth of 13.7 per cent to ₹3,76,193 crore. Savings bank deposits increased by 18 per cent YoY in the quarter to ₹1,27,262 crore driven by the bank’s increased focus on personal engagement and digital onboarding for new customer acquisition.On the advances front, total credit increased by 22.7 per cent YoY in Q1FY27 to ₹3,22,132 crore. This was led by a 36.5 per cent YoY growth in retail loans, 46.8 per cent growth in Agri and 16.2 per cent growth in MSME. The agri loans growth was driven by increased jewel loans.Within retail lending, vehicle loans grew at a robust 31.5 per cent YoY in Q1FY27.Asset qualityAsset quality of the bank improved with Gross NPA reduced to 1.33 per cent from 1.97 per cent in Q1FY26. Net NPA reduced to 0.18 per cent from 0.32 per cent in Q1FY26. Slippage ratio for Q1FY27 came in at 0.06 per cent, a historic low for the bank.Speaking to media persons post earnings, Ajay Kumar Srivastava, MD & CEO of IOB said that the bank has set a target of raising around $1 billion across both FCNR (B) deposits and Overseas Foreign Currency Borrowings (OFCBs) by September, the window set by RBI.
