Indian Overseas Bank Q3 FY26 Earnings Results: Profit Jumps 56% to ₹1,365 Crore

Indian Overseas Bank (IOB) announced its December quarter (Q3 FY26) results on Wednesday, January 14. Following the earnings announcement, IOB shares were trading nearly 2% higher at ₹36.02.

The bank reported a strong 56% year-on-year rise in net profit at ₹1,365 crore, compared with ₹873.6 crore in the same quarter last year.

Operating Profit Shows Healthy Growth

IOB’s operating profit increased 14.87% YoY to ₹2,603 crore in Q3 FY26, up from ₹2,266 crore in Q3 FY25.

For the first 9 months of FY26, the bank’s operating profit stood at ₹7,361 crore, marking a solid 21.27% growth on a year-on-year basis.

Net Interest Income and Margins Improve

The bank’s net interest income (NII) rose 18.29% YoY to ₹3,299 crore in the December quarter, compared with ₹2,789 crore a year ago.

For the 9-month period, NII increased 17.20% YoY to ₹9,104 crore, supported by better margins and growth in the loan book.

• Domestic NIM: 3.42% (up from 3.35% in Q2 FY26)
• Return on Assets (ROA): 1.28% (up from 0.93% in Q3 FY25)
• Cost-to-income ratio: 45.74%, showing controlled expenses

Asset Quality Continues to Strengthen

IOB’s asset quality improved further during the quarter.

• Gross NPA ratio: 1.54%, down 101 basis points YoY
• Net NPA ratio: 0.24%, down 18 basis points YoY

Lower bad loans reflect better recoveries and improved credit quality.

Business Growth and Branch Expansion

The bank’s total business rose by ₹1.01 lakh crore to ₹6.44 lakh crore as of December 2025, showing a strong 18.71% YoY growth.

• CASA deposits: Up 7.8% YoY to ₹1.43 lakh crore
• Branch network: Increased by 116 branches in one year, reaching 3,438 branches

About 58% of branches (around 2,000) are located in rural and semi-urban areas, highlighting IOB’s focus on financial inclusion and wider reach.

Read more: Best Gold Stocks in India for January 2026: Titan, D P Abhushan, Thangamayil and More Based on 5-Yr CAGR.

Indian Overseas Bank Share Price Movement

Indian Overseas Bank share price (NSE: IOB) closed Wednesday’s session on January 14 at ₹36.15, gaining 2.21% or ₹0.78 for the day. The stock opened at ₹35.50, touched an intraday high of ₹36.77, and a low of ₹35.45. Over the past year, the stock has moved between a 52-week high of ₹54.54 and a 52-week low of ₹33.50. The bank has not announced any dividend so far.

Conclusion

Indian Overseas Bank delivered a strong Q3 FY26 performance, driven by higher profits, healthy NII growth, improving asset quality, and steady business expansion. The results reflect better efficiency and balance sheet strength, keeping the bank well-positioned for sustainable growth ahead.

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