Indian Overseas Bank
NII growth eases as NIM declines: Interest income increased 11% to Rs 8488.96 crore, while interest expenses moved up 11% to Rs 5019.25 crore in Q4FY2026. NII rose 11% to Rs 3469.71 crore in Q4FY2026.
Margins declines: NIM has eased 33 bps YoY to 3.25%, while fell 7 bps qoq to 3.25% in Q4FY2026.
Non-interest income declines: The non-interest income of the bank declined 18% to Rs 1290.91 crore in Q4FY2026.
Expense ratio improves: The operating expenses of the bank were steady at Rs 2095.57 crore, as employee expenses dipped 11% to Rs 1005.89 crore in Q4FY2026. Other expenses moved up 14% to Rs 1089.68 crore. Cost to income ratio improved to 44.0% in Q4FY2026 compared with 44.3% in Q4FY2025. Operating Profit moved up 2% to Rs 2665.05 crore.
Provisions and contingencies decline: The bank has shown 5% decline in provisions to Rs 1006 crore.
PBT increased 7% to Rs 1659.09 crore in Q4FY2026. Effective tax rate declined to 9.3% in Q4FY2026 from 32.4% in Q4FY2025. Net Profit increased 43% YoY to Rs 1505.45 crore in Q4FY2026.
Asset quality improving: The bank has further improved asset quality in Q4FY2026.
The fresh slippages of loans stood at Rs 366 crore in Q4FY2026 compared with Rs 290 crore in previous quarter and Rs 2753 crore in the corresponding quarter last year. Provision coverage ratio was steady at 97.50% at end March 2026 compared to 97.49% a quarter ago and 97.30% a year ago. The capital adequacy ratio of the bank stood at 19.8% with Tier I ratio at 16.9% at end March 2026. ?| Asset Quality Indicators: Indian Overseas Bank | |||||||
| ? | Mar-26 | Dec-25 | Sep-25 | Jun-25 | Mar-25 | Variation | |
| QoQ | YoY | ||||||
| Gross NPA (Rs Crore) | 4409.66 | 4529.89 | 5078.27 | 5178.46 | 5347.72 | -3 | -18 |
| Net NPA (Rs Crore) | 637.77 | 707.92 | 776.39 | 816.38 | 911.86 | -10 | -30 |
| % Gross NPA | 1.42 | 1.54 | 1.83 | 1.97 | 2.14 | -12 | -72 |
| % Net NPA | 0.21 | 0.24 | 0.28 | 0.32 | 0.37 | -3 | -16 |
| % PCR | 97.50 | 97.49 | 97.48 | 97.47 | 97.30 | 1 | 20 |
| % CRAR - Basel III | 19.78 | 16.30 | 17.94 | 18.28 | 19.04 | 348 | 74 |
| % CRAR - Tier I - Basel III | 16.94 | 13.99 | 15.53 | 15.78 | 16.44 | 295 | 50 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | |||||||
Business Highlights:
Business growth improves: The business of the bank has increased at an accelerated pace of 21% YoY to Rs 678614 crore end March 2026, as advances growth improved to 24% to Rs 310423 crore and deposits growth improved to 18% to Rs 368191 crore at end March 2026. With the faster growth in advances, the credit to deposit ratio increased to 84.3% at end March 2026 from 80.3% at end March 2025.
CASA deposits ratio improves qoq: The CASA deposits of the bank increased 11% YoY to Rs 151000 crore at end March 2026. CASA ratio eased to 41.0% at end March 2026 compared to 43.8% at end March 2025, while increased from 40.8% at end December 2025. The term deposits have increased 24% to Rs 217191 crore end March 2026.
Strong loan growth: Within the loan book, the retail loans increased 45% YoY to Rs 91083 crore at end March 2026, while credit to agriculture increased 39% to Rs 103819 crore and MSME credit increased 13% to Rs 50106 crore. The share of retail, agriculture and MSME (RAM) improved to 78.9% at end March 2026 compared to 72.6% at end March 2025.
Investment book of the bank increased 8% YoY to Rs 119810 crore at end March 2026.
Branch expansion: The bank has added 56 branches and added 29 ATMs in Q4FY2026, taking overall tally to 3494 branches and 3651 ATM`s end March 2026.
Book value of the bank stood at Rs 17.7 per share at end March 2026, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 17.3 per share at end March 2026.
Financial Performance FY2026:
Bank has posted 56% increase in net profit to Rs 5208.03 crore in the year ended March 2026 (FY2026). The net interest income increased 15% to Rs 12573.64 crore, while non-interest income moved up 2% to Rs 5636.47 crore, leading net total income to increase 11% to Rs 18210.11 crore in FY2026. The operating expenses increased 6% to Rs 8183.98 crore, while provision and contingencies dipped 10% to Rs 3758.10 crore. PBT increased 39% to Rs 6268.03 crore in FY2026. The cost-to-income ratio improved to 44.9% in FY2026 compared to 47.1% in FY2025. An effective tax rate eased to 16.9% in FY2026 compared to 26.1% in FY2025. The net profit has increased 56% to Rs 5208.03 crore in FY2026.| Indian Overseas Bank: Results | ||||||
| Particulars | 2603 (3) | 2503 (3) | Var % | 2603 (12) | 2503 (12) | Var % |
| Interest Earned | 8488.96 | 7633.59 | 11 | 31895.68 | 28131.01 | 13 |
| Interest Expended | 5019.25 | 4510.64 | 11 | 19322.04 | 17240.80 | 12 |
| Net Interest Income | 3469.71 | 3122.95 | 11 | 12573.64 | 10890.21 | 15 |
| Other Income | 1290.91 | 1581.10 | -18 | 5636.47 | 5545.07 | 2 |
| Net Total Income | 4760.62 | 4704.05 | 1 | 18210.11 | 16435.28 | 11 |
| Operating Expenses | 2095.57 | 2086.13 | 0 | 8183.98 | 7747.27 | 6 |
| Operating Profits | 2665.05 | 2617.92 | 2 | 10026.13 | 8688.01 | 15 |
| Provisions & Contingencies | 1005.96 | 1063.46 | -5 | 3758.10 | 4176.29 | -10 |
| Profit Before Tax | 1659.09 | 1554.46 | 7 | 6268.03 | 4511.72 | 39 |
| Provision for tax | 153.64 | 503.39 | -69 | 1060.00 | 1177.01 | -10 |
| PAT | 1505.45 | 1051.07 | 43 | 5208.03 | 3334.71 | 56 |
| EPS*(Rs) | 3.13 | 2.18 | ? | 2.70 | 1.73 | ? |
| Equity | 19256.6 | 19256.6 | ? | 19256.6 | 19256.6 | ? |
| Adj BV (Rs) | 17.32 | 14.54 | ? | 17.32 | 14.54 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
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