Indian Overseas Bank Q4 FY26 Results: Net Profit Soars 43% to ₹1,505 Crore — Strongest Year in a Decade

By Kaushik Brahmakshatriya

Published On 02 June 2026.

Indian Overseas Bank Q4 Results FY26

Indian Overseas Bank (IOB), one of India’s leading public sector banks, has delivered a blockbuster performance for the fourth quarter of FY2025–26. The bank reported a net profit of ₹1,505 crore for Q4 FY26, marking a robust 43.20% year-on-year growth — a clear signal that IOB’s multi-year transformation journey is now generating tangible, sustained financial results.

Q4 FY26 Headline Numbers at a Glance

IOB’s standalone net profit rose 43.20% YoY to ₹1,505.45 crore in Q4 FY26, compared to ₹1,051.07 crore in Q4 FY25. Total income increased 6.14% YoY to ₹9,779.87 crore. Net Interest Income (NII) climbed 11.11% to ₹3,470 crore from ₹3,123 crore a year ago. Operating profit stood at ₹2,665.05 crore, up 1.80% YoY.

These numbers reflect a bank that has successfully tightened its credit processes, improved collections, and scaled up core lending income.

IOB Q4 FY26 vs Q4 FY25 — Key Financial Metrics

Metric	Q4 FY26	Q4 FY25	YoY Change
Net Profit (PAT)	₹1,505.45 Cr	₹1,051.07 Cr	+43.20%
Total Income	₹9,779.87 Cr	₹9,213 Cr	+6.14%
Net Interest Income (NII)	₹3,470 Cr	₹3,123 Cr	+11.11%
Operating Profit	₹2,665.05 Cr	₹2,617.92 Cr	+1.80%
Profit Before Tax (PBT)	₹1,659.09 Cr	₹1,554.46 Cr	+6.72%

NIM and Profitability Metrics

Domestic Net Interest Margin (NIM) stood at 3.35% while global NIM was recorded at 3.25% in Q4 FY26. Return on Assets (ROA) improved by 20 basis points to 1.32% in Q4 FY26, compared with 1.12% in Q4 FY25. Meanwhile, the cost-to-income ratio declined to 44.02% from 44.35% in the corresponding quarter of the previous fiscal.

A falling cost-to-income ratio and rising ROA together confirm that IOB is not just growing revenues — it is doing so efficiently.

Asset Quality: Among the Best in PSU Banking

The most impressive story in IOB’s Q4 FY26 results is its dramatically improved asset quality. Gross NPA declined to 1.42% from 2.14% a year ago, and the Provision Coverage Ratio (PCR) stood at 97.50% — among the highest in the PSU banking space. Net NPA stood at just 0.21%, down from 0.37% in Q4 FY25.

Total slippages for Q4 FY26 stood at ₹366 crore, while full-year slippages were contained at ₹1,211 crore. The bank reported nil slippages in the corporate and overseas segments over the last two quarters, with the corporate loan book maintaining zero slippages throughout FY2025–26.

IOB Asset Quality — Q4 FY26 vs Q4 FY25

Asset Quality Metric	Q4 FY26	Q4 FY25	Change
Gross NPA Ratio	1.42%	2.14%	Improved
Net NPA Ratio	0.21%	0.37%	Improved
Provision Coverage Ratio	97.50%	~94%	Improved
Slippage Ratio (Quarter)	0.13%	—	Low
Corporate Slippages	Nil	—	Nil

Business Growth and CASA Deposits

IOB’s balance sheet expansion has been equally impressive. The bank’s total business increased 20.76% to ₹6,78,614 crore in Q4 FY26 as against ₹5,61,958 crore in Q4 FY25. Total deposits increased 18.03% to ₹3,68,191 crore.

CASA deposits grew 10.85% to ₹1.51 lakh crore. RAM credit grew strongly — 45.12% in the Retail segment, 39.27% in Agriculture, and 13.08% in MSME — all on a YoY basis.

Network Expansion

The bank strengthened its pan-India presence by adding 159 branches, taking its total network to 3,494 as of March 2026, up from 3,335 in March 2025. Of the total branches, 2,040 — or 58% — are located in rural and semi-urban areas.

This rural footprint positions IOB well to capture India’s growing financial inclusion demand.

FY26 Full-Year Performance

On a full-year basis, the bank’s standalone net profit surged 56.18% to ₹5,208.03 crore, while total income increased 11.44% to ₹37,532.15 crore in FY26 compared with FY25.

IOB reported an all-time high operating profit of ₹10,026 crore for the financial year ended March 31, 2026, representing a 15.40% YoY growth. Net interest income stood at ₹12,574 crore, reflecting a 15.46% increase compared to the previous year.

IOB Full-Year FY26 vs FY25 — Annual Scorecard

Annual Metric	FY26	FY25	YoY Growth
Net Profit (PAT)	₹5,208.03 Cr	₹3,334 Cr	+56.18%
Total Income	₹37,532.15 Cr	₹33,679 Cr	+11.44%
Net Interest Income	₹12,574 Cr	₹10,889 Cr	+15.46%
Operating Profit	₹10,026 Cr	₹8,688 Cr	+15.40%
Capital Adequacy Ratio	19.78%	—	Strong

FY27 Outlook

Indian Overseas Bank’s FY27 priorities include sustaining GNPA below 2%, growing RAM loans while maintaining credit discipline, improving the CASA ratio, and scaling digital banking services across its 3,400-plus branch network.

With a PCR of nearly 97.50% and zero corporate slippages, the bank enters FY27 from a position of rare strength among PSU peers.

Frequently Asked Questions (FAQ)

Q1. What was Indian Overseas Bank’s net profit in Q4 FY26?

IOB reported a net profit of ₹1,505.45 crore in Q4 FY26, which is a 43.20% increase compared to ₹1,051.07 crore in Q4 FY25.

Q2. How much did IOB’s NII grow in Q4 FY26?

Net Interest Income grew 11.11% YoY to ₹3,470 crore in Q4 FY26, up from ₹3,123 crore in the same quarter last year.

Q3. What is IOB’s Gross NPA ratio after Q4 FY26?

IOB’s Gross NPA ratio improved to 1.42% in Q4 FY26, down from 2.14% in Q4 FY25, reflecting significant improvement in loan book quality.

Q4. What was IOB’s full-year FY26 net profit?

For the full financial year FY26, Indian Overseas Bank posted a net profit of ₹5,208.03 crore, a jump of 56.18% over FY25.

Q5. Did Indian Overseas Bank declare a dividend for FY26?

As per the Q4 FY26 results announcement, IOB did not declare a dividend. Investors should refer to the official NSE/BSE exchange filing for the most current information.

Q6. What is IOB’s Capital Adequacy Ratio as of March 2026?

IOB’s Capital Adequacy Ratio (CAR) stood at 19.78% as of March 31, 2026, indicating a well-capitalized balance sheet.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a SEBI-registered financial advisor before making any investment decisions.we are not responsible for any loss.