Home / Business and Economy / IOB Profit Surges 49% on Strong Net Interest Income
IOB Profit Surges 49% on Strong Net Interest Income
20 Jul
Summary
- Net profit grew by 49% to ₹1,659 crore in Q1 FY27.
- Net interest income saw a 34% expansion to ₹3,688 crore.
- Gross NPAs reduced to 1.33%, and net NPAs fell to 0.21%.
In the first quarter of FY27, Indian Overseas Bank (IOB) achieved a net profit of ₹1,659 crore, marking a substantial 49% increase from the previous year. This strong financial performance was bolstered by a 34% expansion in net interest income to ₹3,688 crore, alongside reduced provisions for bad loans and lower tax expenses.
The bank's asset quality showed significant improvement, with gross non-performing assets (GNPAs) decreasing to 1.33% and net NPAs falling to 0.21% by the end of June 2026. Fresh slippages in loans were at a five-quarter low of ₹195 crore. Advances grew by 24% year-on-year, outpacing deposit growth.
Retail, agriculture, and MSME loans collectively formed 81% of the bank's total advances. Despite concerns about the West Asia crisis, the bank has not observed stress in these portfolios and has set aside ₹500 crore as a provision. IOB anticipates a credit growth of 12-13% for FY27.
