Indian Overseas Bank Q3 Profit Jumps 63% on Asset Quality Improvement

Chennai-based Indian Overseas Bank reported a 63.0% year-on-year jump in net profit to ₹14.27 billion for the quarter ended Dec 31, 2025, compared with ₹8.75 billion a year earlier.

Total operating income rose 15.0% year-on-year to ₹81.72 billion from ₹71.16 billion in the same quarter last year.

Asset quality improved during the quarter. Gross non-performing assets declined by 101 basis points year-on-year to 1.54% as of December 2025, compared with 2.55% a year earlier. Net NPAs fell to 0.24% from 0.42% over the same period. The slippage ratio for the third quarter of FY26 improved by 2 basis points year-on-year to 0.11%.

Total deposits increased 14.5% year-on-year to ₹3,490.0 billion as of December 2025.

Retail, agriculture and MSME credit grew 43.0%, 34.5% and 17.4%, respectively. Total advances rose 24.1% year-on-year to ₹2,950.0 billion.

Recoveries during the quarter increased to ₹8.90 billion, compared with ₹8.74 billion in the previous quarter.