IOB Q2 consolidated profit rises 55.9% to Rs 1,963 crore

New Delhi: Indian Overseas Bank (IOB) reported a 55.9 percent increase in consolidated net profit to Rs 1,962.67 crore for the September quarter, supported by growth in core income and improved asset quality.

The public sector lender had posted a consolidated net profit of Rs 1,258.82 crore in the corresponding quarter a year earlier.

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Net interest income (NII) rose 26.41 percent year-on-year to Rs 3,867 crore in Q2 FY27, compared with Rs 3,059 crore in the year-ago period. Advances grew 24.35 percent over the same period.

The bank’s domestic net interest margin improved to 3.49 percent as of September 30, 2026, from 3.48 percent at the end of June and 3.35 percent a year earlier, according to its investor presentation.

Non-interest income falls

Non-interest income, however, declined 10.11 percent year-on-year to Rs 1,227 crore from Rs 1,365 crore, owing to lower recoveries from technically written-off accounts.

Separately, Managing Director and Chief Executive Officer Ajay Kumar Srivastava highlighted the absence of income from priority sector lending certificates (PSLCs) in the September quarter, compared with substantial earnings in the preceding quarter.

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"The major reduction was due to the absence of income from priority sector lending certificates (PSLCs). We earned around Rs 900 crore in commission from PSLCs in the first quarter, but there was no such income in the second quarter. This was the primary reason for the decline,” Srivastava said.

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