Noida, Apr 29 (APAC Media): Indian Overseas Bank (IOB) on Wednesday reported a strong rise in its financial performance for the quarter ended March 31, 2026 (Q4FY26), with net profit increasing 43.20% year-on-year to Rs 1,505 crore, compared with Rs 1,051 crore in the corresponding period last year.
For the full financial year, the bank’s net profit climbed 56.16% to Rs 5,208 crore.
Net Interest Income (NII) of the bank rose 11.11% year-on-year to Rs 3,470 crore in Q4FY26, compared with Rs 3,123 crore in Q4FY25. For the full financial year, NII stood at Rs 12,574 crore, registering an increase of 15.46%.
Domestic Net Interest Margin (NIM) stood at 3.35% in Q4FY26, while global NIM was recorded at 3.25% during the same period. Return on Assets (ROA) improved by 20 basis points to 1.32% in Q4FY26, compared with 1.12% in Q4FY25. Meanwhile, the cost-to-income ratio declined to 44.02% from 44.35% in the corresponding quarter of the previous fiscal.
“The promoter, the President of India acting through the Government of India, carried out an Offer for Sale (OFS) of 41.78 crore equity shares on December 17–18, 2025, via the stock exchange mechanism, following which the promoter stake in the bank declined to 92.44% from 94.61%, while public shareholding increased to 7.56% from 5.39%,” the bank said in a regulatory filing.
Total recoveries in Q4FY26 rose to Rs 960 crore from Rs 890 crore in Q3FY26. Recovery from written-off accounts, including technical write-offs and set-offs, stood at Rs 564 crore during Q4FY26.
As a result, the bank reported an operating profit of Rs 2,665 crore in Q4FY26, compared with Rs 2,618 crore in the same period last year, reflecting a modest year-on-year growth of 1.8%.
Total slippages for Q4FY26 stood at Rs 366 crore, while full-year slippages were contained at Rs 1,211 crore. The slippage ratio remained low at 0.13% for Q4FY26 and 0.49% for the full year.
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.
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, underscoring its focus on financial inclusion.
The ATM/CR network expanded by 154 units to 3,651 as of March 2026. Business correspondents increased by 2,052 to 12,187 from 10,135 earlier. Overall, total customer touchpoints stood at 19,332 as of March 31, 2026.
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