Indian Overseas Bank reports strong growth, improved asset quality

Indian Overseas Bank reported a global business of ₹6,17,034 Crs and a net profit of ₹2,337 Crs for the six months ending September 30, 2025. The bank achieved a net interest margin (NIM) of 3.21% and a return on assets (RoA) of 1.20% for Q2FY26. Advances grew to ₹2,77,968 Crs, with deposits reaching ₹3,39,066 Crs, reflecting stable growth at CAGRs of 12% and 8% respectively. Asset quality showed significant improvement, with gross non-performing assets (GNPA) at 1.83% and net non-performing assets (NNPA) at 0.28% as of September 30, 2025. The provision coverage ratio (PCR) stood at a healthy 97.48%.

The bank’s domestic advances mix on September 25 saw retail contributing 30%, agriculture 32%, MSME 19%, and corporate 19%. Retail advances grew at a CAGR of 19% since FY23, while agriculture advances grew at a CAGR of 20% over the same period. CRAR for Sept'25 reached 17.94%, with Tier I Capital at 15.53% and CET1 Capital at 15.53%. The bank also saw an increase in internet banking users (CAGR: 16.0%) and mobile banking users (CAGR: 26.7%).

IOB has been recognized with multiple awards, including the winner in the Special Initiative Citation category in EASE 7.0 Reforms (FY26) and No.01 ranking among public sector banks in the Grievance Redressal Assessment & Index (GRAI) for August 2025. The bank also received 5 prestigious citations at the IBA Banking Technology awards in FY26.