Indian Overseas Bank Q2 Profit Jumps 56% To ₹1,963 Crore, Total Income Rises 13% To ₹10,428 Crore

Mumbai-based public sector lender Indian Overseas Bank has reported a significant increase in its second quarter profit, with consolidated net profit jumping by 56 percent to ₹1,962.67 crore for the quarter ending September 30, 2026. This marks a stark contrast to the same period last year when the bank made a profit of ₹1,258.82 crore.

The bank's total income also saw a 13 percent rise, reaching ₹10,427.88 crore from ₹9,216.33 crore a year earlier. A major contributor to this growth was the sharp increase in interest income, which grew by 17.2 percent to ₹9,201.23 crore.

Operating profit before provisions and contingencies grew by 25.6 percent to ₹3,016.49 crore, while the bank's forward-looking provision for expected credit losses was set at ₹2,700 crore. The bank also disclosed a significant revaluation gain of ₹723.99 crore on government-guaranteed security receipts.

On a quarter-on-quarter basis, the bank's consolidated net profit increased by 14.4 percent, and total income rose by 0.9 percent sequentially. For the first half of the fiscal year 2027, the bank's consolidated net profit rose by 50.9 percent to ₹3,678.96 crore, with total income increasing by 18.2 percent to ₹21,365.68 crore.

The bank's asset quality improved, with gross non-performing assets dropping to 1.19 percent of advances from 1.83 percent a year earlier. The net non-performing assets (NPAs) were 0.16 percent, and the provision coverage ratio stood at 97.69 percent. These figures were presented in the bank's unaudited financial results, which were approved by the board at a meeting held on October 26.