Indian Overseas Bank (IOB) reported a 49.3% year-on-year jump in net profit to ₹1,659 crore for the quarter ended June 2026, driven by improved asset quality.
The state-owned lender also saw total income rise to ₹10,938 crore, up from ₹8,866.47 crore in the same period last year, according to a stock exchange filing.
5% profit increase to ₹5,332 crore, and Federal Bank, which saw a 36.
The results underscore a broad-based recovery in profitability across the Indian banking sector.
IOB’s performance follows similar positive trends from peers, including Union Bank of India, which posted a 29.5% profit increase to ₹5,332 crore, and Federal Bank, which saw a 36.5% jump to ₹1,177 crore.
These figures suggest that higher net interest margins and stabilizing credit conditions are benefiting both public and private sector lenders.
For investors, the surge in IOB’s earnings highlights the continued turnaround in asset quality for state-owned banks, which have historically struggled with non-performing assets.