Indian Overseas Bank's Q2 FY 2025-26 Quarterly Results

Result Summary

• Indian Overseas Bank reported a 3.9% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 8.6%.
• Its expenses for the quarter were up by 4.7% QoQ and 7.2% YoY.
• The net profit increased 6.8% QoQ and increased 61.5% YoY.
• The earnings per share (EPS) of Indian Overseas Bank stood at 0.65 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

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Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Indian Overseas Bank is a public sector bank in India, primarily engaged in providing a range of financial services and products. The core services offered by the bank include retail banking, corporate banking, and treasury operations. The bank caters to a diverse clientele, providing savings accounts, loans, credit facilities, and investment services. Operating within the Indian banking industry, the bank plays a vital role in the country's financial system. There are no specific recent major developments available about the company in the data provided, but like other banks, it is likely involved in digital banking initiatives to enhance customer service and operational efficiency.

Revenue

In the second quarter of the fiscal year 2026 (Q2FY26), Indian Overseas Bank reported a total income of ₹9,216.33 crores. This marks an increase of 3.9% on a quarter-over-quarter (QoQ) basis from the ₹8,867.88 crores reported in the first quarter of fiscal year 2026 (Q1FY26). Compared to the same quarter in the previous fiscal year (Q2FY25), there is an 8.6% year-over-year (YoY) growth from ₹8,489.90 crores. The growth in total income reflects the bank's ability to enhance its revenue streams over both the quarter and the year.

Profitability

The profitability of Indian Overseas Bank saw robust growth in Q2FY26. The profit before tax (PBT) was ₹1,729.06 crores, showing an increase of 14.2% QoQ from ₹1,514.55 crores in Q1FY26 and a significant rise of 75.7% YoY from ₹984.35 crores in Q2FY25. The provisions and contingencies were reported at ₹672.46 crores, which decreased by 20.3% QoQ from ₹844.05 crores and by 41.3% YoY from ₹1,146.31 crores. The profit after tax (PAT) for Q2FY26 was ₹1,258.82 crores, reflecting a 6.8% increase QoQ from ₹1,178.45 crores and a 61.5% increase YoY from ₹779.62 crores. The bank's tax expenses also rose by 24.4% QoQ and 144.8% YoY to ₹501.16 crores, indicating a higher tax liability in line with increased profitability.

Operating Metrics

The operational efficiency of Indian Overseas Bank is reflected in its earnings per share (EPS), which was ₹0.65 in Q2FY26, up by 6.6% QoQ from ₹0.61 in Q1FY26. The EPS for Q2FY25 was not specified, indicating potential adjustments or non-disclosure in the previous period’s data. Total expenses for Q2FY26 stood at ₹6,814.81 crores, increasing by 4.7% QoQ from ₹6,509.28 crores in Q1FY26, and by 7.2% YoY from ₹6,359.24 crores. This rise in expenses aligns with the overall increase in income, reflecting the bank's expanded operations. The bank's ability to manage provisions and contingencies effectively is evident from the substantial reductions in these expenses both QoQ and YoY, contributing positively to its net profitability.