Indian Overseas Bank Q2 FY27 Results: Consolidated Net Profit ₹1,912 Crore on Total Income of ₹10,428 Crore
Earnings
Public sector bank
Blacklitt Research3 min read
Indian Overseas Bank (NSE: IOB) reported total income of ₹10,427.88 crore for the quarter ended 30 Sep 2026, in a filing on 26 Oct 2026. Net profit was ₹1,912.42 crore on a standalone basis and ₹1,962.67 crore for the period on a consolidated basis.
Key highlights
Consolidated
Including its subsidiaries
Total income: ₹10,427.88 crore, up 13.1% YoY and down 4.7% QoQ
Net profit and EPS: ₹1,912.42 crore, up 55.7% YoY; basic EPS ₹1.02
Tax expense: ₹153.99 crore, 7.5% of profit before tax, against 29.0% a year earlier
Finance costs: ₹5,334.25 crore, against ₹4,789.64 crore a year earlier
Standalone
The company on its own, without its subsidiaries
Total income: ₹10,427.88 crore, up 13.2% YoY and down 4.7% QoQ
Net profit and EPS: ₹1,912.42 crore, up 55.9% YoY; basic EPS ₹0.99
Tax expense: ₹153.99 crore, 7.5% of profit before tax, against 29.0% a year earlier
Finance costs: ₹5,334.25 crore, against ₹4,789.65 crore a year earlier
Summary
Consolidated ₹ crore
Particulars
Q2 FY27
Q2 FY26
YoY
Q1 FY27
QoQ
10,427.88
9,216.33
+13.1%
10,937.80
-4.7%
Revenue from operations
9,201.23
7,850.89
+17.2%
8,777.57
+4.8%
Other income
1,226.65
1,365.44
-10.2%
2,160.23
-43.2%
1,912.42
1,227.90
+55.7%
1,659.24
+15.3%
Tax expense
153.99
501.16
-69.3%
199.83
-22.9%
Net profit margin
18.34%
13.32%
+5.02 pp
15.17%
+3.17 pp
Tax as share of profit before tax
7.5%
29.0%
-21.53 pp
10.7%
-3.30 pp
EPS, basic (₹)
1.02
0.65
+56.9%
0.89
+14.6%
Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.
Consolidated net profit rose 55.7% YoY to ₹1,912.42 crore, faster than total income, which rose 13.1%. Against the prior quarter, net profit rose 15.3% while total income fell 4.7%. Net profit margin was 18.34%, against 13.32% a year earlier, and basic EPS was ₹1.02, against ₹0.65.
Revenue from operations rose 17.2% YoY to ₹9,201.23 crore, while other income fell 10.2% to ₹1,226.65 crore. Other income was 11.8% of total income and 59.4% of profit before tax of ₹2,066.41 crore.
Tax expense was ₹153.99 crore, down 69.3% YoY. It was 7.5% of profit before tax, against 29.0% a year earlier and 10.7% in the prior quarter.
The consolidated statement shows profit for the period of ₹1,962.67 crore, after a ₹50.25 crore share in profit from associates. The ₹1,912.42 crore in the table is the figure before that share. The auditors state that one associate, whose results they have not reviewed, accounts for a share of net profit of ₹50.37 crore in the quarter.
Standalone ₹ crore
Particulars
Q2 FY27
Q2 FY26
YoY
Q1 FY27
QoQ
10,427.88
9,214.24
+13.2%
10,937.80
-4.7%
Revenue from operations
9,201.23
7,848.79
+17.2%
8,777.57
+4.8%
Other income
1,226.65
1,365.45
-10.2%
2,160.23
-43.2%
1,912.42
1,226.42
+55.9%
1,659.24
+15.3%
Tax expense
153.99
501.16
-69.3%
199.83
-22.9%
Net profit margin
18.34%
13.31%
+5.03 pp
15.17%
+3.17 pp
Tax as share of profit before tax
7.5%
29.0%
-21.56 pp
10.7%
-3.30 pp
EPS, basic (₹)
0.99
0.64
+54.7%
0.86
+15.1%
Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.
Standalone net profit rose 55.9% YoY to ₹1,912.42 crore, faster than total income, which rose 13.2% to ₹10,427.88 crore. Against the prior quarter, net profit rose 15.3% while total income fell 4.7%. Net profit margin was 18.34%, against 13.31% a year earlier, and basic EPS was ₹0.99, against ₹0.64.
Other income was ₹1,226.65 crore, down 10.2% YoY and 43.2% QoQ, and was 11.8% of total income. Revenue from operations rose 17.2% YoY to ₹9,201.23 crore.
Tax expense was ₹153.99 crore, against ₹501.16 crore a year earlier, and was 7.5% of profit before tax of ₹2,066.41 crore.
The Bank reversed deferred tax asset of ₹150.14 crore in the quarter and ₹346.30 crore in the half-year, on a prudence basis. Management says the carrying balance of net deferred tax asset of ₹2,315.21 crore is fully realisable.
Asset quality at 30 Sep 2026 shows gross NPA of ₹4,114.41 crore (1.19%) and net NPA of ₹543.58 crore (0.16%), with a provision coverage ratio of 97.69%.
Inference
The statutory auditors issued unmodified conclusions on both sets of results, except that the consolidated Pillar 3 disclosures (leverage ratio, liquidity coverage ratio and NSFR) are on the Bank's website and were not reviewed.
At 30 Sep 2026 the government held 92.44% of the shares, the capital adequacy ratio was 18.60% and CET1 was 16.26%. Accumulated losses of ₹8,733.34 crore as of 31 Mar 2026 were adjusted against the Share Premium Account from 10 Jul 2026, with RBI approval.
The results were placed before the Board under Para 14A of the Nationalised Banks Scheme, since the requisite number of independent directors have not yet been appointed. The reason for the quarter-on-quarter fall in other income is not stated.
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