Indian Overseas Bank
NII growth accelerates as NIM and loan growth rises: Interest income increased 17% to Rs 9201.23 crore, while interest expenses moved up 11% to Rs 5334.25 crore in Q2FY2027. NII improved 26% to Rs 3866.98 crore in Q2FY2027.
Margins improve: The bank has shown 28 bps YoY decline in cost of deposits to 4.77%, while yield on advances declined 33 bps YoY to 8.61% in Q2FY2027. NIM has improved 16 bps YoY and remained flat qoq at 3.37% in Q2FY2027.
Moderate growth in the core fee income: The non-interest income of the bank declined 10% to Rs 1226.65 crore in Q2FY2027. Bank has posted 6% growth in core fee income to Rs 477 crore, while the treasury income improved 6% to Rs 162 crore. However, the recoveries income declined 11% to Rs 371 crore and other income dipped 37% to Rs 216 crore in Q2FY2027.
Expense ratio improves: The operating expenses of the bank increased 3% to Rs 2077.14 crore, as other expenses moved up 40% to Rs 1193.18 crore, while employee expenses dipped 25% to Rs 883.96 crore in Q2FY2027. Cost to income ratio improved to 40.8% in Q2FY2027 compared with 45.8% in Q2FY2026. Operating Profit moved up 26% to Rs 3016.49 crore.
Provisions and contingencies increase: The bank has shown 41% increase in provisions to Rs 950 crore. The loan loss provisions moved up 17% to Rs 142 crore, while other provisions jumped 46% to Rs 808 crore in Q2FY2027.
PBT increased 20% to Rs 2066.41 crore in Q2FY2027. Effective tax rate declined to 7.5% in Q2FY2027 from 29.0% in Q2FY2026. Net Profit increased 56% YoY to Rs 1912.42 crore in Q2FY2027.
Asset quality improves: The bank has improved asset quality in Q2FY2027.
The fresh slippage of loans stood at Rs 244 crore in Q2FY2027 compared with Rs 199 crore in previous quarter and Rs 345 crore in the corresponding quarter last year. The recoveries of loans were at Rs 159 crore and upgrades were at Rs 60 crore, while the write-off of loans was at Rs 190 crore in Q2FY2027. Provision coverage ratio was steady at 97.69% at end September 2026 compared to 97.67% a quarter ago and 97.48% a year ago. The capital adequacy ratio of the bank stood at 18.6% with Tier I ratio at 16.3% at end September 2026. The risk weighted assets of the bank has increased 25% YoY to Rs 230222 crore end September 2026.| Asset Quality Indicators: Indian Overseas Bank | ||||||||
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| Sep-26 | Jun-26 | Mar-26 | Dec-25 | Sep-25 | Variation | ||
| QoQ | YTD | YoY | ||||||
| Gross NPA (Rs Crore) | 4114.41 | 4292.26 | 4409.66 | 4529.89 | 5078.27 | -4 | -7 | -19 |
| Net NPA (Rs Crore) | 543.58 | 588.42 | 637.77 | 707.92 | 776.39 | -8 | -15 | -30 |
| % Gross NPA | 1.19 | 1.33 | 1.42 | 1.54 | 1.83 | -14 | -23 | -64 |
| % Net NPA | 0.16 | 0.18 | 0.21 | 0.24 | 0.28 | -2 | -5 | -12 |
| % PCR | 97.69 | 97.67 | 97.50 | 97.49 | 97.48 | 2 | 19 | 21 |
| % CRAR - Basel III | 18.60 | 19.36 | 19.78 | 16.30 | 17.94 | -76 | -118 | 66 |
| % CRAR - Tier I - Basel III | 16.26 | 16.88 | 16.94 | 13.99 | 15.53 | -62 | -68 | 73 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | ||||||||
Business Highlights:
Business growth accelerates: The business of the bank has increased at an accelerated pace of 22% YoY to Rs 753078 crore end September 2026, as advances growth improved to 24% to Rs 345650 crore and deposits growth improved to 20% to Rs 407428 crore at end September 2026. With the faster growth in advances, the credit to deposit ratio rose to 84.8% at end September 2026 from 82.0% at end September 2025.
CASA deposits ratio improves: The CASA deposits of the bank increased 21% YoY to Rs 165862 crore at end September 2026. The current account deposits moved up 32% to Rs 27153 crore, while saving account deposits increased 18% to Rs 127262 crore end September 2026. The CASA ratio improved to 40.7% at end September 2026 compared to 40.5% at end September 2025, while it remained nearly steady from 41.0% a quarter ago. The term deposits have increased 20% to Rs 241566 crore end September 2026.
Strong loan growth: Within the loan book, the retail loans increased 34% YoY to Rs 105364 crore at end September 2026, while credit to agriculture increased 47% to Rs 122305 crore and MSME credit increased 14% to Rs 55186 crore. The corporate credit has dipped 19% to Rs 40373 crore end September 2026. The overseas credit has increased 28% to Rs 22422 crore end September 2026. The share of retail, agriculture and MSME (RAM) improved to 81.8% at end September 2026 compared to 75.6% at end September 2025.
Investment book of the bank increased by 7% YoY to Rs 125067 crore at end September 2026. The SLR book moved up 10% to Rs 93609 crore, while non SLR book was flat yoy at Rs 27298 crore at end September 2026. The AFS book galloped 29% to Rs 23281 crore, while HTM book increased 5% to Rs 94376 crore at end September 2026.
Branch expansion: The bank has added 20 branches and added 38 ATMs in Q2FY2027, taking overall tally to 3542 branches and 3729 ATM`s end September 2026.
Book value of the bank stood at Rs 19.4 per share at end September 2026, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 19.1 per share at end September 2026.
Financial Performance H1FY2027:
Bank has posted 53% increase in net profit to Rs 3571.66 crore in the half year ended September 2026 (H1FY2027). The net interest income increased 30% to Rs 7554.60 crore, while non-interest income moved up 19% to Rs 3386.88 crore, leading net total income to increase 26% to Rs 10941.48 crore in H1FY2027. The operating expenses increased 34% to Rs 5231.89 crore, while provision and contingencies jumped 18% to Rs 1784.11 crore. PBT increased 21% to Rs 3925.48 crore in H1FY2027. The cost-to-income ratio rose to 47.8% in H1FY2027 compared to 45.0% in H1FY2026. An effective tax rate eased to 9.0% in H1FY2027 compared to 27.9% in H1FY2026. The net profit has increased 53% to Rs 3571.66 crore in H1FY2027.| Indian Overseas Bank: Results | |||||||||
| Particulars | 2609 (3) | 2509 (3) | Var % | 2609 (6) | 2509 (6) | Var % | 2603 (12) | 2503 (12) | Var % |
| Interest Earned | 9201.23 | 7848.79 | 17 | 17978.80 | 15234.34 | 18 | 31895.68 | 28131.01 | 13 |
| Interest Expended | 5334.25 | 4789.65 | 11 | 10424.20 | 9428.95 | 11 | 19322.04 | 17240.80 | 12 |
| Net Interest Income | 3866.98 | 3059.14 | 26 | 7554.60 | 5805.39 | 30 | 12573.64 | 10890.21 | 15 |
| Other Income | 1226.65 | 1365.45 | -10 | 3386.88 | 2846.37 | 19 | 5636.47 | 5545.07 | 2 |
| Net Total Income | 5093.63 | 4424.59 | 15 | 10941.48 | 8651.76 | 26 | 18210.11 | 16435.28 | 11 |
| Operating Expenses | 2077.14 | 2024.56 | 3 | 5231.89 | 3893.78 | 34 | 8183.98 | 7747.27 | 6 |
| Operating Profits | 3016.49 | 2400.03 | 26 | 5709.59 | 4757.98 | 20 | 10026.13 | 8688.01 | 15 |
| Provisions & Contingencies | 950.08 | 672.45 | 41 | 1784.11 | 1516.50 | 18 | 3758.10 | 4176.29 | -10 |
| Profit Before Tax | 2066.41 | 1727.58 | 20 | 3925.48 | 3241.48 | 21 | 6268.03 | 4511.72 | 39 |
| Provision for tax | 153.99 | 501.16 | -69 | 353.82 | 904.02 | -61 | 1060.00 | 1177.01 | -10 |
| PAT | 1912.42 | 1226.42 | 56 | 3571.66 | 2337.46 | 53 | 5208.03 | 3334.71 | 56 |
| EPS*(Rs) | 4.0 | 2.5 | 3.7 | 2.4 | 2.7 | 1.7 | |||
| Equity | 19256.6 | 19256.6 | 19256.6 | 19256.6 | 19256.6 | 19256.6 | |||
| Adj BV (Rs) | 19.1 | 15.8 | 19.1 | 15.8 | 17.3 | 14.5 | |||
| * 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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