Public sector lender Indian Overseas Bank (IOB) recorded its highest ever consolidated net profit at ₹1,556 crore for quarter ended March 2026 (Q4FY26), up 42.5 per cent compared to the corresponding quarter in the previous financial year. 

For the full financial year, profit went up by 56 per cent to ₹5,419 crore, crossing the ₹5,000 crore mark for the first time. 

Net profit growth was supported by a decline in provisioning requirements as slippages reduced during the quarter, credit growth, and was also aided by the bank’s shift to the new tax regime after deferred tax adjustments over the last few years.

Speaking to media persons, Ajay Kumar Srivastava, MD and CEO, Indian Overseas Bank, said that the bank is anticipating 12-13% credit growth and 14-15% deposit growth for FY27, factoring in for any stress in credit growth due to West Asia tensions.

As for the bank’s outlook looking into FY27, Srivastava said that while a few MSME accounts in select pockets are showing some stress due to the ongoing conflict in West Asia, the situation is not alarming. “However, if the Iran war persists, it could have an impact on credit growth,” he said.

Net Interest Income (NII) increased 11.1 per cent to ₹3,470 crore in Q4 FY26. Non interest income however went down by 18.3 per cent due to treasury income going down. 

For FY26, NIM stood at 3.33 per cent, compared to 3.42 per cent in FY25.

The bank’s total business increased ₹1.16 lakh crore to reach ₹6.79 lakh crore as on March 2026, registering y-o-y growth of 20.8 per cent. Total advances increased 24.1 per cent to ₹3.10 lakh crore as of March 2025. RAM business grew 34.91 per cent y-o-y. 

The bank’s asset quality also improved in Q4FY26. Gross non-performing assets (NPAs) stood at 1.42 per cent, compared to 2.14 per cent in the same quarter last year. Net NPAs declined to 0.21 per cent in March 2026 from 0.37 per cent in the year-ago period. Total Recovery for Q3FY26 increased to ₹960 crore from ₹890 crore for Q3FY26.

Meanwhile, total deposits went up by 18 per cent to ₹3,88,191 crore, while total advances went up by 24.1 per cent to ₹3,10,423 crore. 

With respect to the new ECL framework that kicks off from April 1, 2027, IOB said it has already created ₹1,750 crore in the December quarter, and ₹250 crore this quarter. Srivatava said that the bank is continuing to evaluate further provisioning.

On Mythos, the new AI model from Anthropic, which is reportedly capable of exploiting cybersecurity lapses in the banking, Srivastava said that IOB has a competent information security team in place and have been advised to closely monitor and prepare for any potential developments around the Mythos release.

The shares of IOB on NSE closed at ₹35.29 on Thursday, up ₹0.32 or 0,92 per cent from the previous day’s close.

Published on April 29, 2026