IOB Q1 FY27 Net Profit Soars 49% to ₹1,659 Crore; Business Mix Grows 17.7%
Indian Overseas Bank reported a 49.32% year-on-year increase in net profit for Q1 FY27, reaching ₹1,659 crore. Business mix grew 17.72% to ₹6,98,325 crore, with advances up 22.75%. The bank plans to raise ₹5,000 crore via equity and ₹1,000 crore via Tier 2 bonds, with equity issuance expected in Q3/Q4.
The announcement details strong quarterly financial results, including record profits and substantial growth in key banking parameters. The planned equity and debt raising also indicate significant future financial activity, impacting the bank's capital structure and growth prospects.
The bank reported record net profit, significant year-on-year growth in key financial metrics like net profit, operating profit, business mix, deposits, and advances. Improvements in asset quality, NIM, ROA, and ROE, along with a strong CAR, indicate a positive financial performance.
Indian Overseas Bank (IOB) announced its financial results for the first quarter of FY2027, ending June 30, 2026. The bank achieved an all-time high quarterly net profit of ₹1,659 crore, marking a significant 49.32% year-on-year increase from ₹1,111 crore in the same quarter of the previous year.
Operating profit for the quarter stood at ₹2,693 crore, a 14.21% year-on-year growth. The bank's business mix grew by over 17.72% to ₹6,98,325 crore. Total deposits reached ₹3,76,193 crore, up 13.72% year-on-year, while total advances increased by 22.75% to ₹3,22,132 crore.
Key performance indicators showed improvement, with the Provision Coverage Ratio (PCR) rising to 97.67% and the Capital Adequacy Ratio (CAR) at a strong 19.36%. Net interest margin (NIM) global improved to 3.37% from 3.25% in the previous quarter. Asset quality also saw enhancements, with Gross NPA reducing to 1.33% and Net NPA to 0.18%. The return on assets (ROA) improved to 1.41%, and return on equity (ROE) stood at 22.69%.
The bank is planning to raise ₹5,000 crore in equity and ₹1,000 crore in Tier 2 bonds, with equity raising expected in Q3 or Q4 of the current financial year. IOB also received an IFSCA license for GIFT City and aims to build a book of $500 million by the end of the financial year.
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See the model portfoliosA plain-language summary of a public exchange filing by Indian Overseas Bank. Read the original for the full detail.