<p><a href="https://www.mid-day.com/business/business-news/article/indian-overseas-bank-q1fy27-profit-surges-49-per-cent-to-rs-1659-crore-23640698" target="_blank" rel="none noopener">Public sector lender Indian Overseas Bank (IOB)</a> on Monday reported a 55.95 per cent rise in net profit at Rs 1,912 crore for the second quarter ended September 30, 2026 led by higher interest income.</p>
<p>The bank had posted a net profit of Rs 1,226 crore in the corresponding quarter last fiscal it said in a statement.</p>
<p>Operating profit during the quarter under review increased by 25.67 per cent to Rs 3,016 crore from Rs 2,400 crore in the year-ago period.</p>
<h2>Net interest income rises</h2>
<p>The Net Interest Income rose 26.41 per cent to Rs 3,867 crore during the reporting quarter from Rs 3,059 crore in the same quarter last year. Net Interest Income is the difference between interest earned and interest paid, a key metric to understand a bank&rsquo;s financial stability.&nbsp;</p>
<p>The bank's domestic <a href="https://www.mid-day.com/business/business-news/article/indusind-bank-reports-rs-1242-crore-net-profit-for-q2fy27-nim-shrinks-23656725" target="_blank" rel="none noopener">Net Interest Margin (NIM)</a> stood at 3.49 per cent compared to 3.48 per cent in the June quarter and 3.35 per cent in the September 2025 quarter.&nbsp;</p>
<p>The global NIM stood at 3.37 per cent, the same level during the June quarter, as against 3.21 per cent in the year ago period. NIM is a key financial metric to understand a bank&rsquo;s profitability.</p>
<h2>Advances and deposits</h2>
<p>IOB's total deposits during the reporting quarter increased 20.16 per cent at Rs 4,07,428 as against Rs 3,39,066 crore in the previous year. The total advances rose 24.35 per cent to Rs 3,45,650 crore from Rs 2,77,968 crore in the same quarter last year. &nbsp;The retail term deposit stood at Rs 1,93,189 crore, compared to Rs 1,71,384 crore in the corresponding quarter last year. The bank's domestic CASA (Current Account and Savings Account) ratio stood at 41.14 per cent.</p>
<h2>Asset quality improves</h2>
<p>In terms of asset quality, the bank's <a href="https://www.mid-day.com/mumbai/mumbai-news/article/rbi-report-says-npas-of-indian-banks-fell-to-multi-decadal-low-of-2-1-per-cent-23609794" target="_blank" rel="none noopener">gross non-performing assets (GNPA)</a> ratio improved to 1.19 per cent in Q2 of FY27, from 1.83 per cent in the Q2 of FY26. The net NPA ratio too improved, to 0.16 per cent during the second quarter of this financial year compared to 0.28 per cent last year.</p>
<p>The bank's provisional coverage ratio (PCR) stood at 97.69 per cent during the reporting quarter.&nbsp;</p>

The Net Interest Income increased 26.41 per cent to Rs 3,867 crore during the quarter under review from Rs 3,059 crore last year

Indian Overseas Bank Q2FY27 net profit soars 55.95 per cent to Rs 1,912 crore

SBI expects 50 bps repo rate hike in December; rate hike cycle may impact credit demand: SBI Chairman

The Net Interest Income rose 26.41 per cent to Rs 3,867 crore during the reporting quarter from Rs 3,059 crore in the same quarter last year

Indian Overseas Bank Q2FY27 net profit surges 55.95 per cent to Rs 1,912 crore

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