Chennai: Indian Overseas Bank’s annual net profit crossed Rs 5,000 crore for the first time, with the public sector lender reporting FY26 profit at Rs 5,209 crore, up 56% from Rs 3,335 crore in FY25, driven by higher income and lower provisions and tax expenses.The bank’s operating profit also crossed Rs 10,000 crore for the first time, rising 15% to Rs 10,026 crore from Rs 8,688 crore, supported by a 15% increase in net interest income, which stood at Rs 12,574 crore in FY26 compared with Rs 10,890 crore in the previous year. For the quarter ended March 31, 2026, net profit rose 43% to Rs 1,505 crore from Rs 1,051 crore in the year-ago period. Net interest income for the March 2026 quarter grew 11% to Rs 3,470 crore, compared with Rs 3,123 crore a year earlier.Total slippages for Q4 FY26 stood at Rs 366 crore, while FY26 slippages were at Rs 1,211 crore. The slippage ratio stood at 0.13% for Q4 FY26 and 0.49% for FY26. The bank reported nil slippages in the corporate and overseas segments over the last two quarters, with the corporate book maintaining zero slippages for the full FY26.“With no significant fresh additions to stressed assets, the recovery pool has declined, making year-on-year comparisons less meaningful,” said Ajay Kumar Srivastava, MD & CEO of IOB. Total recoveries stood at ₹960 crore in Q4, while for the full year they were ₹3,576 crore. FY26 Recoveries were nearly three times the annual slippages, he added. The gross NPA ratio declined by 72 basis points year-on-year to 1.42%, while the net NPA ratio fell by 16 basis points to 0.21%. As of March 2026, total deposits rose 18% year-on-year to ₹3.68 lakh crore, while total advances grew 24% to Rs 3.10 lakh crore.
