IOB Q2 Results: Net Profit Jumps 57.79% To Hit Record-High, NIM & ROE Hit New Highs; Asset Quality Best In Yrs

Indian Overseas Bank (IOB) released its financial results today, October 16, for the quarter and a half that ended on September 30, 2025. As of 30.09.2025, the bank's net profit reached a record high of Rs 1,226 crores, up 57.79% YoY from Rs 777 crores in the same period in 2024. According to IOB, its operating profit grew by 12.78% YoY to Rs 2,400 crores in Q2FY26 from Rs 2,128 crores in Q2FY25. The bank's Net Interest Income (NII) grew by 20.53 percent on a YoY basis during the quarter under review, reaching Rs 3,059 crores from Rs 2,538 crores in the year-ago quarter.

As of 30.09.2025, IOB's Net Interest Margin (NIM) was 3.35%, up 14 basis points from 3.21 percent on 30.09.2024. As of 30.09.2025, its cost-to-income ratio was 45.76 percent, down 321 basis points from 48.97 percent in the same period in 2024. The bank reported that its Return on Equity (ROE) grew by 305 basis points to 19.95 percent from 16.90 percent, and its Return on Assets (ROA) increased by 38 basis points to 1.20 percent during the quarter ended in September 2025 from 0.82 percent during the quarter ended in September 2024.

The bank's total business grew by 14.10 percent YoY to Rs 6,17,034 crores as of 30.09.2025 from Rs 5,40,801 crores as of 30.09.2024. According to IOB, its total deposits grew by 9.15% YoY to Rs 3,39,066 crores in Q2FY26 from Rs 3,10,652 crores in Q2FY25. During the quarter under review, the bank's gross advances climbed to Rs 2,77,968 crores, up 20.78% year-on-year from Rs 2,30,149 crores in the same quarter last year.
On a year-on-year basis, the bank's CASA grew by 4.19 percent to Rs 1,37,387 crores as of 30.09.2025 from Rs 1,31,856 crores as of 30.09.2024. Meanwhile, the CASA Ratio was at 40.52% and the Credit to Deposit (CD) Ratio was at 81.98%.

The asset quality of the bank was at its best in years. The ratio of gross non-performing assets (GNPA) dropped by 89 basis points to 1.83% on September 30, 2025, from 2.72 percent on September 30, 2024. IOB's Net NPA ratio dropped from 0.47 percent on 30.09.2024 to 0.28% on 30.09.2025, a 19 basis point drop. According to the bank, its provision coverage ratio climbed 42 basis points to 97.48% in Q2FY26 from 97.06% in Q2FY25.

According to the bank, in Q2FY26, its credit cost was 0.18 percent and its slippage ratio remained at 0.11 percent. While recovery from the written-off accounts for the quarter ended 30.09.2025 was Rs 461 Crore, total recovery for the quarter ended 30.09.2025 climbed to Rs 874 from Rs 851 Crore as of 30.06.2025.

According to IOB, the number of domestic branches increased from 3,269 on September 30, 2024, to 3,373 on September 30, 2025. The bank has 1,962 (58%) of its 3,373 domestic branches in rural and semi-urban locations. The bank's number of ATMs and CR grew from 3,501 branches on September 30, 2024, to 3,567 branches on September 30, 2025, and its number of business correspondents climbed from 8,023 branches on September 30, 2024, to 11,467 branches on September 30, 2025. As of September 30, 2025, IOB had 18,407 total customer touchpoints.