Indian Overseas Bank Reports 56% Rise in Q2 Net Profit to ₹1,912 Crore

MUMBAI — Indian Overseas Bank (IOB) on Monday reported a 56 per cent growth in net profit, reaching ₹1,912 crore for the second quarter ended September 30. The public sector lender cited higher interest income as the primary driver for the financial performance.

During the corresponding quarter of the previous fiscal year, the bank had recorded a net profit of ₹1,226 crore.

The bank's interest income registered a 17 per cent increase, rising to ₹9,201 crore in the September quarter of the current fiscal. This compares to ₹7,849 crore recorded in the same period last year.

Alongside profit growth, IOB also reported improvements in its asset quality metrics. Gross non-performing assets (NPAs) as a percentage of gross advances improved to 1.19 per cent in the second quarter of the current fiscal year, down from 1.83 per cent in the corresponding quarter of the previous year.

Following the earnings announcement, shares of Indian Overseas Bank were trading at ₹30.01, marking an increase of 4.56 per cent over the previous close on the Bombay Stock Exchange (BSE).

"Indian Overseas Bank's latest quarterly results demonstrate steady financial health, driven by a notable increase in interest income and better management of asset quality. The significant reduction in gross non-performing assets to 1.19 per cent reflects sound operational discipline within the institution. For the broader financial and business ecosystem, consistent improvements in public sector bank metrics are a positive indicator of overall credit stability and market confidence." — Dr. Shishir Gupta, Founder & CEO, StartupLanes