State-owned Indian Overseas Bank (IOB) has reported a strong financial performance for the first quarter ended June 2026, with its net profit rising 49.3 per cent year-on-year to ₹1,659 crore. The bank had recorded a net profit of ₹1,111 crore in the corresponding quarter of the previous financial year.
The increase in profitability was supported by improved asset quality and stronger financial performance. According to the bank’s stock exchange filing, total income during the April-June quarter increased to ₹10,938 crore, compared with ₹8,866.47 crore in the same period last year.
IOB witnessed a significant improvement in its asset quality during the quarter. Gross Non-Performing Assets (GNPA) declined to 1.33 per cent in the June quarter of FY27, compared with 1.97 per cent a year earlier. The bank’s net Non-Performing Assets (NNPA) also improved to 0.18 per cent from 0.32 per cent during the same period.
The bank’s provisions stood at ₹834 crore in the quarter under review, largely stable compared with ₹844 crore in the year-ago period. However, provisions were lower than the ₹1,006 crore reported in the March quarter.
The improved earnings and declining bad loan levels reflect Indian Overseas Bank’s continued progress in strengthening its balance sheet and enhancing operational efficiency. Following the announcement of the results, shares of IOB gained momentum in the market, trading higher during Monday’s session.
The latest quarterly performance highlights the lender’s steady recovery and improved financial position amid a favourable environment for the banking sector.
