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

> Indian Overseas Bank posted 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.

- Published: 2026-10-26T07:39:10+00:00
- Section: Earnings & Results
- Author: News Desk
- URL: https://newsforagent.com/news/2026-10-26/indian-overseas-bank-q2-profit-jumps
- Source: [CNBCTV18](https://www.cnbctv18.com/market/indian-overseas-bank-iob-q2-results-nii-profit-npas-slippages-margins-loan-deposit-growth-outlook-share-price-20019293.htm)

## Key takeaways

- Indian Overseas Bank reported September-quarter net profit of ₹1,912 crore, up 56% from ₹1,226.4 crore a year earlier.
- Net interest income rose 26.4% to ₹3,867 crore, while other income fell to ₹1,226 crore and provisions rose to ₹950 crore from ₹834 crore in the June quarter.
- Gross NPA improved to 1.19% from 1.33% and net NPA to 0.16% from 0.18% in the June quarter.

[Indian Overseas Bank](https://akta.pro/company-profiles/00021fo/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](https://www.cnbctv18.com/market/indian-overseas-bank-iob-q2-results-nii-profit-npas-slippages-margins-loan-deposit-growth-outlook-share-price-20019293.htm) 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](https://akta.pro/company-data), 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.

## Companies in this story

- [Indian Overseas Bank company profile](https://akta.pro/company-profiles/00021fo/indian-overseas-bank) · website: https://www.iob.in

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