Mumbai, July 18 (IANS) Indian Overseas Bank (IOB) on Friday reported a strong 75.6 per cent year-on-year (YoY) growth in its net profit for the June quarter (Q1 FY26), reaching Rs 1,111.04 crore.

This is a sharp increase compared to Rs 632.81 crore profit the bank earned in the same quarter previous year (Q1 FY25), according to its stock exchange.

The bank’s total income for the quarter rose 17 per cent to Rs 8,866.47 crore, which includes Rs 1,480.92 crore earned as other income.

Net interest income (NII), which is the difference between interest earned and interest paid, also saw a healthy 13 per cent rise to Rs 2,747 crore from Rs 2,441 crore a year ago.

IOB’s operating profit before provisions and contingencies stood at Rs 2,357.95 crore, up 41 per cent from Rs 1,675.86 crore in the corresponding period of the previous year, as per its filing.

Meanwhile, provisions and contingencies came down to Rs 844.05 crore in Q1 FY26 from Rs 937.87 crore previous year.

The bank also reported an improvement in asset quality. Gross non-performing assets (NPAs) fell to 1.97 per cent from 2.14 per cent in the March quarter, while net NPAs improved to 0.32 per cent from 0.37 per cent during the same period.

Provisions were also lower sequentially, dropping to Rs 844 crore at the end of June, compared to Rs 1,063 crore in March. This drop in provisions also helped boost the bank’s profit.

Following the announcement of its quarterly results, shares of Indian Overseas Bank were up 0.8 per cent at Rs 40.17 during the intra-day trade. The stock has gained nearly 7 per cent in the last one month.

However, in the last six months, the shares were down by Rs 12.57 or 23.9 per cent. On a year-to-date (YTD) basis, the share price was down by Rs 11.90 or 22.94 per cent.

–IANS

pk/na