Indian Overseas Bank reported a 56.16% increase in net profit to Rs 5,208 crore for the financial year ended March 31, 2026, compared to Rs 3,335 crore in the previous year. The bank's total business grew by 20.76% to Rs 6,78,614 crore, driven by a 24.16% rise in advances and an 18.03% growth in total deposits. Operating profit reached an all-time high of Rs 10,026 crore, registering a growth of 15.40%.

Asset Quality and Capital Adequacy

The bank demonstrated consistent improvement in asset quality, with the Gross NPA (GNPA) ratio declining by 72 basis points to 1.42% as of March 31, 2026, from 2.14% a year ago. The Net NPA (NNPA) ratio stood at 0.21%, down from 0.37% in the previous year. The provision coverage ratio (PCR) improved to 97.50%. The Capital to Risk-weighted Assets Ratio (CRAR) strengthened to 19.78%, well above the regulatory minimum of 11.50%.

Key Financial Metrics

The following table outlines the bank's key performance indicators for the financial year ended March 31, 2026:

Operational Highlights

The bank's fee-based income increased by 15.91% to Rs 2,732 crore. Domestic CASA deposits stood at Rs 1,50,936 crore, constituting 40.99% of total deposits. The bank also focused on its Retail, Agri, and MSME (RAM) segments, which constituted 83% of domestic advances. The transcript of the analyst meet held on May 8, 2026, has been uploaded to the bank's website.

Source: None/Company/INE565A01014/9f3dffdf777c4f8e.pdf

Indian Overseas Bank delivered robust financial performance in Q4FY26, with net profit increasing 43.20% year-on-year to ₹1,505 crore from ₹1,051 crore in Q4FY25. For the full year FY26, net profit reached ₹5,208 crore, marking a significant 56.16% growth compared to ₹3,335 crore in FY25. The Board of Directors approved these audited financial results in their meeting held on April 29, 2026, at Chennai.

Financial Performance Highlights

The bank demonstrated strong growth across key profitability metrics in Q4FY26:

Net Interest Income for the full year stood at ₹12,574 crore, up 15.46% from ₹10,890 crore in FY25. Operating Income reached ₹18,210 crore for FY26, representing a 10.80% increase from ₹16,435 crore in the previous year. Operating expenses were well-controlled at ₹8,184 crore, up only 5.64% year-on-year.

Asset Quality and Recovery Performance

The bank's asset quality showed substantial improvement with Gross NPA ratio declining to 1.42% in Q4FY26 from 2.14% in Q4FY25, a reduction of 72 basis points. Net NPA ratio improved to 0.21% from 0.37%, down 16 basis points year-on-year. Provision Coverage Ratio strengthened to 97.50%, up 20 basis points YoY.

Total recovery for Q4FY26 increased to ₹960 crore from ₹890 crore in Q3FY26. Recovery from written-off accounts stood at ₹564 crore. The bank reported nil slippages in Corporate & Overseas segments over the last two quarters, with the Corporate book maintaining zero slippages for the entire FY 2025-26.

Business Growth and Expansion

The bank's total business grew 20.76% year-on-year to ₹6.79 lakh crore as of March 2026 from ₹5.62 lakh crore in March 2025. Total deposits increased 18.03% to ₹3.68 lakh crore, while total advances rose 24.16% to ₹3.10 lakh crore.

Domestic CASA ratio increased to 41.46% while global CASA ratio stood at 40.99%. The strong performance in Retail, Agriculture & MSME segments demonstrates the bank's focus on a diversified lending portfolio.

Capital Adequacy and Digital Initiatives

Capital Adequacy Ratio improved significantly to 19.78% in Q4FY26, up 74 basis points from 19.04% in the previous year. Tier-I capital stood at 16.94% and Tier-II at 2.84% as of March 2026.

The bank has enhanced its digital offerings with IOB Digital Hub, Video-based KYC processes, WhatsApp Banking services, and Unified Lending Interface (ULI) platform. These initiatives support the bank's vision to emerge as the preferred bank connecting customers through technology-driven solutions.

Analysts' Meet and Investor Engagement

Indian Overseas Bank has scheduled an Analysts' Meet/Earnings Call to discuss the audited financial results for the quarter and year ended March 31, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The meet is scheduled as an in-person event, with the analyst presentation already uploaded to stock exchanges on April 30, 2026.

The management team participating in the meet includes Mr. Ajay Kumar Srivastava (MD & CEO), Mr. Joydeep Dutta Roy (Executive Director), and Mr. Dhanaraj T (Executive Director). The bank has confirmed that no Unpublished Price Sensitive Information will be shared during the meet, and discussions will be limited to publicly available documents.

Awards, Compliance and Capital Raising

The bank has received multiple recognitions including the Best Performer award among Public Sector Banks in grievance redressal by the Department of Financial Services. At IBA's 21st Annual Banking Technology Conference, Indian Overseas Bank received four prestigious recognitions including Best Tech Talent & Organization (Runner-up) and Best Technology Bank of the Year (Special Mention).

In compliance with SEBI Regulation 47 and Regulation 52 of SEBI (LODR) Regulations, 2015, the bank published its financial results in multiple newspapers on April 30, 2026, including The Economic Times, Times of India, Mint, Rajasthan Patrika, and Dinamalar. During the year, the bank raised ₹1,000 crore through Basel III Tier II Bonds Series VI with a 7.80% coupon rate and 10-year tenure.