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Indian Overseas Bank posted strong results in the December quarter. The numbers show steady improvement across key areas. Profit growth, higher income, and better asset quality supported the performance. The results also boosted investor confidence.
Indian Overseas Bank Q3 results showed a sharp rise in net profit. The bank earned Rs. 1,365 crore in Q3 FY26. This marked a 56% increase from Rs. 873.6 crore in the same quarter last year. Higher lending income drove the bank’s growth, while improved cost control further boosted profits.
Net interest income rose at a healthy pace. NII increased 18.29% year on year to Rs. 3,299 crore in the quarter. This growth came from improved margins and higher loan activity. For the first 9 months of FY26, NII reached Rs. 9,104 crore. The steady rise shows stable core banking performance.
Indian Overseas Bank also reported an operating profit of Rs. 2,603 crore. This was nearly 15% higher than the previous year. The institution’s 9-month operating profit stood at Rs. 7,361 crore, while the cost-to-income ratio stayed at 45.74%.
Profitability ratios showed clear improvement. Domestic net interest margin rose to 3.42% in Q3 FY26. It stood at 3.35% in the previous quarter. Return on assets improved to 1.28% from 0.93% a year ago. These figures reflect better use of funds and improved earnings quality.
Asset quality strengthened further with gross NPA ratio declining to 1.54%, a 101 basis points improvement from last year. Net NPA ratio also eased to 0.24%, as lower bad loans reduced pressure on profits.
Business growth stayed strong. Total business increased by Rs. 1.01 lakh crore to Rs. 6.44 lakh crore by December 2025. This showed year-on-year growth of 18.71%. CASA deposits rose 7.8% to Rs. 1.43 lakh crore. Strong deposits supported loan growth and liquidity.
Indian Overseas Bank also expanded its branch network. The bank added 116 new branches during the year. Total branches reached 3,438 by December 2025. Around 58% of branches operate in rural and semi-urban areas. This focus supports wider banking access and steady deposit growth.
The stock market reacted positively after the results. Indian Overseas Bank shares traded near Rs. 36.02. The stock gained close to 2% after the announcement. Investors welcomed strong profit growth and better asset quality. Indian Overseas Bank Q3 results highlighted improving performance among PSU banks in FY26.
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