IOB Q3 profit surges 56% to Rs 1,365 crore as bad loans decline

New Delhi: State-owned Indian Overseas Bank (IOB) on Wednesday reported 56.2 per cent jump in net profit at Rs 1,365 crore for the third quarter ended December 2025 as bad loans reduced and core business improved.

The Chennai-based lender had earned a net profit of Rs 874 crore in the same quarter a year ago.

Total income increased to Rs 9,672 crore during the quarter under review from Rs 8,409 crore in the same period last year, IOB said in a regulatory filing.

Operating profit of the bank improved to Rs 2,603 crore from Rs 2,266 crore in December quarter 2024. Interest income also rose to Rs 8,172 crore from Rs 7,112 crore.

Net Interest Income (NII) grew 18 per cent to Rs 3,299 crore in Q3FY26 as against Rs 2,789 crore in Q3FY25 On the asset quality front, the bank's gross Non-Performing Assets (NPAs) declined to 1.54 per cent of gross loans by the end of December 2025 from 2.55 per cent a year ago.

Similarly, net NPAs or bad loans came down to 0.24 per cent as compared with 0.42 per cent in FY25.

Capital Adequacy Ratio of the bank moderated to 16.3 per cent as against 16.97 per cent at the end of same quarter a year ago.

Provision Coverage Ratio of the bank as on December 31, 2025, stood at 97.49 per cent as compared to 97.07 per cent at the end of December 31, 2024.

Total business of the bank rose 18.7 per cent to Rs 6.44 lakh crore as compared to Rs 5.42 lakh crore at the end of the third quarter of the previous financial year, an increase of Rs 1.01 lakh crore in absolute term.

The bank's total advances during the quarter increased 24 per cent to Rs 2.94 lakh crore while total deposits witnessed growth of 14.5 per cent at Rs 3.94 lakh crore at the end of December 2025.

During three quarters, the bank reported a net profit of Rs 3,703 crore compared to Rs 2,284 crore in the nine-month period of the previous year.

Total income also increased to Rs 27,752 crore from Rs 24,461 crore in the nine-month period of the last financial year.