Indian Overseas Bank Q2 Net Profit Rises 56% to ₹1,912 Crore as Core Income and Asset Quality Improve

Indian Overseas Bank reported a 56% year-on-year rise in September-quarter net profit to ₹1,912 crore, with net interest income up 26.4% to ₹3,867 crore, CNBC TV18 reported on October 26, 2026. The Chennai-headquartered public sector bank runs retail, MSME, agricultural, corporate and NRI banking services through 3,494 branches and digital channels.

Indian Overseas Bank's September Quarter Earnings

Net interest income for the quarter rose to ₹3,867 crore from ₹3,059.3 crore a year earlier. Profitability increased to ₹1,912 crore from ₹1,226.4 crore in the base quarter, even as other income dropped to ₹1,226 crore from ₹1,365 crore and provisions rose to ₹950 crore from ₹834 crore in the June quarter.

Asset quality improved sequentially. Gross NPA fell to 1.19% from 1.33% in the June quarter, and net NPA to 0.16% from 0.18%. In absolute terms, gross NPA stood at ₹4,114 crore from ₹4,292 crore in June, while net NPA stood at ₹543.5 crore from ₹588.4 crore.

Indian Overseas Bank's Profit Record and Government Stake

According to akta.pro company records, Indian Overseas Bank's annual net profit for FY26 was ₹5,209 crore, up 56% from ₹3,335 crore in FY25 and above the ₹5,000 crore mark for the first time. Annual operating profit for FY26 was ₹10,026 crore, rising 15% year-on-year and crossing the ₹10,000 crore milestone for the first time. The same records show the Indian government planning minority stake sales in the bank as part of its ₹80,000 crore disinvestment target for FY27, with the Centre owning 96.5%.

Rate Move and Card Launch Before the Results

Indian Overseas Bank raised its MCLR by 5 basis points across six tenors effective October 15, 2026, with the one-month rate unchanged at 8.25%, CNBC TV18 reported. The bank and novio launched a co-branded RuPay credit card on September 16, available in Select and Platinum variants, with the FD-backed card targeting UPI-active customers. The bank opened applications for 291 Generalist and Specialist Officer posts from August 29 to September 15, 2026, The Times of India reported.

Indian Overseas Bank's Next Steps

Indian Overseas Bank's September quarter results were published on October 26, 2026, and the report stated that the story would be updated with more details.