IOB Q2 FY27 Results: Standalone Net Profit Rises to ₹1,91,242 Lakh While Gross NPA Ratio Falls To 1.19%; Shares Rally

Indian Overseas Bank (IOB) announced its unaudited financial results on 26 October 2026 for the quarter and half-year ended 30 September. The public sector lender reported growth in net profit over both the June 2026 quarter and the September quarter last year. Total income also rose from its year-ago level.

The bank's standalone results reported earnings per share (EPS) of ₹0.99 for Q2 FY27, compared with ₹0.86 in Q1 FY27 and ₹0.64 in Q2 FY26. The Government of India held 92.44% of IOB's shares as of 30 September 2026, unchanged from the previous quarter. The corresponding holding in Q2 FY26 was 94.61%.

The IOB share price was trading at ₹30.39 on 26 October 2026 at 03:01 pm, up 5.96% from the previous close of ₹28.68, after the bank released its Q2 FY27 results earlier in the day.

How Did The Bank Perform In Q2 FY27?

IOB posted a net profit of ₹1,91,242 lakh in Q2 FY27, up from ₹1,65,924 lakh in the June quarter. A year ago, the bank had reported ₹1,22,642 lakh for the September quarter.

Other key financial figures are the following:

• Total income: ₹10,42,788 lakh, compared with ₹10,93,780 lakh in Q1 FY27 and ₹9,21,424 lakh in Q2 FY26.

• Interest earned: ₹9,20,123 lakh, against ₹8,77,757 lakh in Q1 FY27 and ₹7,84,879 lakh in Q2 FY26.

• Interest expended: ₹5,33,425 lakh, compared with ₹5,08,995 lakh in Q1 FY27 and ₹4,78,965 lakh in Q2 FY26.

• Operating profit before provisions and contingencies: ₹3,01,649 lakh, against ₹2,69,310 lakh in Q1 FY27 and ₹2,40,003 lakh in Q2 FY26.

• Profit before tax: ₹2,06,641 lakh, compared with ₹1,85,907 lakh in Q1 FY27 and ₹1,72,758 lakh in Q2 FY26.

The bank's half-year standalone net profit for the period ended 30 September 2026 stood at ₹3,57,166 lakh, compared with ₹2,33,746 lakh in the corresponding period of the previous financial year.

Asset Quality And Balance Sheet

IOB reported a gross NPA (Non-Performing Asset) ratio of 1.19% in Q2 FY27, down from 1.83% in Q1 FY27 and 1.42% in Q2 FY26. The net NPA ratio stood at 0.16%, compared with 0.18% in the previous quarter and 0.28% a year earlier.

The bank's other reported asset-quality and capital figures include:

• Gross NPA: ₹4,11,441 lakh, compared with ₹4,29,226 lakh in Q1 FY27 and ₹5,07,827 lakh in Q2 FY26.

• Net NPA: ₹54,358 lakh, against ₹58,842 lakh in Q1 FY27 and ₹77,639 lakh in Q2 FY26.

• Capital adequacy ratio: 18.60% under Basel III, compared with 19.36% in Q1 FY27 and 17.94% in Q2 FY26.

• CET-1 (Common Equity Tier 1) ratio: 16.26%, against 16.88% in Q1 FY27 and 15.53% in Q2 FY26.

• Provision coverage ratio: 97.69% as of 30 September 2026.

IOB also disclosed a forward-looking provision of ₹2,70,000 lakh against requirements under the Expected Credit Loss framework as of 30 September 2026.

Source

NSE

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