IOB Reports Strong H1 FY27 Performance with 55.95 percent YoY Net Profit Growth in Q2

Oct 26: The bank reported strong financial performance for the half year ended September 2026, with growth in profitability, business operations, advances and deposits, alongside improvements in key financial ratios and asset quality.

Financial Performance for H1 FY27

The bank’s net profit increased by 52.85% year-on-year (YoY) to ₹3,572 crore in H1 FY27, compared with ₹2,337 crore in H1 FY26. Operating profit rose by 20.01% to ₹5,710 crore from ₹4,758 crore in the corresponding period of the previous year.

Net Interest Income (NII) grew by 30.15% to ₹7,555 crore, compared with ₹5,805 crore in H1 FY26. Non-interest income also increased by 19.01% to ₹3,387 crore from ₹2,846 crore.

Key Financial Ratios

The bank recorded improvements across key financial ratios during the first half of FY27. Domestic Net Interest Margin (NIM) increased by 22 basis points year-on-year to 3.48%, while global NIM rose by 25 basis points to 3.37%.

Return on Assets (RoA) improved by 29 basis points to 1.46%, compared with 1.17% in H1 FY26. Return on Equity (RoE) increased by 443 basis points to 23.83%, against 19.40% in the corresponding period last year.

The slippage ratio declined by 8 basis points year-on-year to 0.14%, compared with 0.22% in H1 FY26.

Quarterly Performance Highlights

The bank also reported strong growth in profitability for the quarter, with net profit increasing by 55.95% year-on-year to ₹1,912 crore. Operating profit rose by 25.67% to ₹3,016 crore, while Net Interest Income increased by 26.41% to ₹3,867 crore.

Domestic NIM increased by 14 basis points to 3.49%, and global NIM rose by 16 basis points to 3.37%. Return on Assets improved by 33 basis points to 1.53%, while Return on Equity increased by 463 basis points to 24.58%. The cost-to-income ratio improved by 498 basis points to 40.78%.

Improvement in Asset Quality

The bank reported improvements in asset quality indicators. The Gross Non-Performing Asset (NPA) ratio declined by 64 basis points year-on-year to 1.19%, while the Net NPA ratio fell by 12 basis points to 0.16%.

The slippage ratio reduced by 4 basis points to 0.07%, and credit cost declined by 1 basis point to 0.17%. NPA recovery during the quarter stood at ₹647 crore, equivalent to 2.95 times the quarterly slippages.

The Capital to Risk-Weighted Assets Ratio (CRAR) increased by 66 basis points year-on-year to 18.60%, with the Common Equity Tier 1 (CET-1) ratio at 16.26%.

Growth in Business, Advances and Deposits

The bank’s global business increased by 22.05% year-on-year to ₹7,53,078 crore. Global advances grew by 24.35% to ₹3,45,650 crore, while global deposits increased by 20.16% to ₹4,07,428 crore.

The Retail, Agriculture and MSME (RAM) segment recorded overall growth of 34.51%. Within the segment, retail grew by 33.77%, agriculture by 47.31% and MSME by 13.80%.

CASA deposits increased by 20.73% year-on-year to ₹1,65,862 crore. Domestic CASA stood at 41.14%, while global CASA was 40.71%.

Savings Bank (SB) deposits grew by 18.11% to ₹1,31,408 crore, while Certificate of Deposit (CD) deposits increased by 31.87% to ₹34,454 crore.

The bank’s performance during H1 FY27 reflects growth in profitability, advances and deposits, supported by improvements in financial ratios and asset quality.