Business · India Bureau
Indian Overseas Bank profit surges 56% on stronger interest income
Indian Overseas Bank reported a significant jump in second-quarter net profit, buoyed by higher interest income and improved asset quality. The public sector lender's earnings growth also drove its share price higher on the BSE.
LSN India ·
Indian Overseas Bank (IoB) posted a net profit of ₹1,912 crore for the quarter ended September 30, marking a 56 per cent year-on-year increase from ₹1,226 crore in the corresponding period last fiscal, the bank announced on Monday.
The growth was primarily driven by a robust 17 per cent rise in interest income to ₹9,201 crore, up from ₹7,849 crore in the September quarter of the previous financial year. The bank's core lending business benefited from higher lending volumes and improved asset yields during the period.
Asset quality metrics also showed marked improvement. Gross non-performing assets as a percentage of gross advances declined to 1.19 per cent in the second quarter of FY27, compared with 1.83 per cent in the year-ago quarter, reflecting better credit management and recovery efforts.
The positive results were reflected in market sentiment, with IoB shares rising 4.56 per cent to trade at ₹30.01 on the BSE following the announcement. The earnings growth and improved operational metrics underscore the bank's recovery trajectory amid a competitive lending environment.