Indian Overseas Bank (IOB) investor relations material

Executive summary

• Achieved record quarterly net profit of INR 1,659 crores for Q1 FY 2026/27, up 49.32% year-over-year, driven by strong growth in both interest and non-interest income.

• Operating profit reached INR 2,693 crores, a 14.21% year-over-year increase, with operating income up 38.35%.

• Advances grew 22.75% and deposits 13.72% year-over-year, reflecting robust business momentum.

• Board approved unaudited standalone and consolidated financial results for the quarter, with no material misstatements reported.

• Consistent improvement in asset quality, digital initiatives, and international expansion highlighted.

Financial highlights

• Net interest income grew 34.3% year-over-year to INR 3,688 crores; non-interest income surged 45.87% to INR 2,160 crores.

• Gross NPA reduced to 1.33% (from 1.97%); Net NPA to 0.18% (from 0.32%) year-over-year.

• Provision coverage ratio improved to 97.67%.

• Return on assets improved to 1.41%; return on equity to 22.69%.

• Capital adequacy ratio at 19.36%, well above regulatory requirement.

Outlook and guidance

• Credit growth guidance at 13%-14% for FY 2026/27, with potential to exceed based on recent trends.

• NIM expected to be maintained in the 3.3%-3.4% range.

• ROA targeted above 1.20%, aiming for 1.45%-1.46% by year-end.

• Credit cost guidance for full year at 0.35%-0.40%.

• Management highlights continued focus on digital initiatives, financial inclusion, ESG, and sustainable growth.