Indian Overseas Bank Q2 result: Net profit soars 58% YoY to ₹1,266 crore; NII rises over 20%

In the corresponding period of the previous fiscal year, the bank had clocked a profit of ₹777 crore, it said in a regulatory filing.

Its net interest income (NII) rose 20.53% YoY to ₹3,059 crore during the quarter under review, compared to ₹2,538 crore in the September quarter of FY25.

Furthermore, the Indian Overseas Bank’s domestic net interest margin (NIM) increased by 14 basis points (bps) YoY to 3.35% for Q2FY26, as against 3.21% as on September 30, 2025.

Its global NIM also expanded, rising 3.21% for the reporting quarter, marking a jump of 13 bps from 3.08% in the year-ago period.

The bank’s asset quality improves both YoY and on a quarter-on-quarter (QoQ) basis, as its gross non-performing assets (NPA) declined to 1.83% during the second quarter of FY26, as against 2.72% of total loans in the same quarter of FY25. Its GNPA stood at 1.97% in the previous quarter (Q1FY26).

Its net non-performing assets (NNPA) also improved, falling to 0.28% during the reporting quarter, from 0.47% YoY and 0.32% QoQ.

During the quarter, its total deposits stood at ₹3.39 lakh crore, marking a 9.15% YoY growth from ₹3.11 lakh crore in the second quarter of the previous fiscal year.

The bank’s total business increased by 14.1% YoY to ₹6.17 lakh crore in Q2FY26, compared to ₹ 5.41 lakh crore in the September quarter of FY25.

India Overseas share performance

Shares of Indian Overseas Bank soared as much as 2.04% to trade at an intra-day high of ₹41.05 apiece on the National Stock Exchange (NSE) on Thursday, after the earnings were announced.

However, the stock declined as much as 1.69% to the day’s low of ₹39.55 per equity share. At around 1:19 pm, it was trading 0.55% lower at ₹40.01 apiece.

The scrip has risen nearly 2% over the past five days but lost 0.2% over the month. It has gained close to 10% over the last six months. On a year-to-date basis, the shares have declined nearly 23%.

While the stock reached a 52-week low of ₹33.50 on April 7, 2025, it touched a year’s high of ₹59.94 per equity share on December 5, 2025.

Indian Overseas Bank has a total market capitalisation of ₹77,026.36 crore, as of October 16, 2025, according to data on the NSE.