The bank clocked a net profit of Rs 1505 crore for the quarter under review as compared with Rs 1051 crore. Total provisions were lower at Rs 1006 against Rs 1064 crore while tax expenses fell to Rs 154 crore against Rs 503 crore.
The lender’s asset quality improved with gross non-performing assets ratio falling by 72 basis points year-on-year to 1.42%.
Its operating profit was at Rs 2665 crore against Rs 2618 crore. Net interest income grew 11% at Rs 3470 crore while other income was seen 18% lower at Rs 1291 crore on account of Rs 555 crore of treasury losses.
The treasury impact on the profit was Rs 65 crore for the quarter, managing director Ajay Kumar Srivastava said.
IOB’s annual net profit for FY26 stood at 5208 crore against Rs 3335 crre, reflecting a 56% surge.
The quarterly net interest margin improved to 3.58% from 3.25% a year prior.Total advance of the bank increased by 24% year-on-year to Rs 3.10 lakh crore at the end of March. The bank has given guidance of a minimum 13-14% advance growth in FY27.
Srivastava said he is anticipating spillover impact of the West Asia conflict on lending to India’s micro and small enterprises units. The bank has created an additional provisional buffer of Rs 400 crore to cover any emerging credit risk out of the geopolitical crisis. It has also made a Rs 1750 crore provision for the expected credit loss regime, which will be implemented on April 1 next year.
The bank has projected a 14-15% growth in deposits, which expanded 18% year-on-year in FY26 to Rs 3.68 lakh crore.