Public sector lender Indian Overseas Bank (IOB) reported December quarter standalone net profit rose 56.18% to ₹1,365 crore against ₹874 crore in the year earlier period due to improved performance and asset quality.

Net interest income increased by 18.29% to ₹3,299 crore. Domestic net interest margin rose to 3.42% from 3.35% in Q2FY26.

Gross Non-Performing Assets (GNPA) declined by 101 bps to 1.54% and net NPA by 18% to 0.24%. Slippage Ratio improved by 2 bps and stood at 0.11% Provision Coverage Ratio increased by 42 pbs to 97.49%. Capital Adequacy Ratio was 16.30%.

During the period, IOB recovered ₹890 crore against ₹874 crore for Q2. Recovery from the written off accounts for Q3 stood at ₹635 crore.

“Recoveries consistently exceed slippage, across all periods, recoveries are 3x higher than slippages, reflecting strong asset quality management. The bank recovered ₹2,616 crore in the first nine months against ₹845 crore slippages,” said MD & CEO Anil Kumar Srivastava.

The Bank’s total business increased by ₹1.01 lakh crore to close at ₹6.44 lakh crore, marking a growth of 18.7%. CASA deposits registered a growth of 7.8% YoY and stood at ₹1.43 lakh crore.

Deposits grew by 14.5% to ₹3.49 lakh crore. Retail, Agri and MSME Credit (RAM) increased by 43.04%, 34.5% 17.42% respectively.

RAM business was up by 33.1% on Y-o-Y basis. Total advances increased by 24.1% to ₹2.95 lakh crore. In the last 12 months up to December 2025, IOB added 116 new branches, increasing the network from 3,322 to 3,438 branches. Out of the total 3,438 domestic branches, the Bank operates 2,000 branches (58%) in rural and semi-urban areas.