Performance Analysis for Quarter Ended 30th June 2026

Nature of Disclosure: Quarterly performance and business update presentation for the quarter ended June 30, 2026.

Financial Performance

Profitability:

  • Net Profit for Q2 Jun-26 stood at ₹1,659 crore, a growth of 10.23% QoQ (over Mar-26 ₹1,505 crore) and 49.32% YoY (over Jun-25 ₹1,111 crore).
  • Operating Profit was ₹2,693 crore for Jun-26, up 1.05% QoQ and 14.21% YoY.
  • Net Interest Income (NII) was ₹3,688 crore for Jun-26, up 6.28% QoQ and 34.30% YoY.
  • Non-Interest Income saw a significant jump to ₹2,160 crore in Jun-26, up 67.31% QoQ and 45.85% YoY, driven largely by a 1697.92% QoQ surge in PSLC Commission to ₹863 crore.
  • Total Income for the quarter was ₹10,938 crore, an 11.84% increase QoQ and a 23.37% increase YoY.

Breakdown of Income & Expenses:

  • Interest on Loans contributed ₹6,662 crore to income (3.42% QoQ growth, 20.93% YoY).
  • Total Interest Expenses were ₹5,090 crore (1.41% QoQ growth, 9.72% YoY).
  • Operating Expenses increased to ₹3,155 crore (50.52% QoQ, 68.81% YoY), with Staff Expenses rising to ₹2,104 crore (109.15% QoQ, 80.45% YoY).
  • Total Provisions decreased to ₹834 crore, down 17.10% QoQ and 1.18% YoY. NPA Provisions specifically were ₹106 crore, down 52.89% QoQ.
  • Tax expenses were ₹200 crore for the quarter.

Business Growth

Deposits & Advances:

  • Global Business Mix reached ₹6,98,325 crore, a 2.90% QoQ and 17.72% YoY increase.
  • Total Deposits stood at ₹3,76,193 crore (2.17% QoQ, 13.72% YoY). CASA deposits were ₹1,54,415 crore (2.30% QoQ, 6.61% YoY).
  • Global Advances grew to ₹3,22,132 crore (3.77% QoQ, 22.75% YoY). The Credit-Deposit Ratio (Global) was 85.63%, up 132 bps QoQ.

Segment-wise Advances (Domestic):

  • RAM (Retail, Agri, MSME) advances constituted 81.21% of domestic advances, totaling ₹2,61,594 crore (6.77% QoQ growth).
  • Retail Advances: ₹96,637 crore (6.09% QoQ, 36.49% YoY).
  • Agri Advances: ₹1,12,403 crore (8.27% QoQ, 46.84% YoY).
  • MSME Advances: ₹52,554 crore (4.88% QoQ, 16.15% YoY).
  • Corporate/Other Advances: ₹44,405 crore (-10.09% QoQ).

Asset Quality & NPA Management

Asset Quality Ratios:

  • Gross NPA (GNPA) stood at ₹4,292 crore, with the ratio improving to 1.33% from 1.42% in Mar-26 and 1.97% in Jun-25.
  • Net NPA (NNPA) was ₹588 crore, with the ratio at 0.18%, down from 0.21% in Mar-26.
  • Provision Coverage Ratio (PCR) strengthened to 97.67%, a 20 bps improvement.

NPA Movement (Q2 Jun-26):

  • Opening Gross NPAs: ₹4,410 crore.
  • Reductions: ₹316 crore (including ₹106 crore in cash recoveries, ₹35 crore in upgradations, ₹174 crore in write-offs).
  • Fresh Slippages: ₹195 crore.
  • Closing Gross NPAs: ₹4,292 crore.

Segmental NPA Analysis (Jun-26):

  • Retail: NPA ratio of 0.53% (₹511 crore).
  • Agri: NPA ratio of 0.97% (₹1,095 crore).
  • MSME: NPA ratio of 2.24% (₹1,176 crore).
  • Corporate: NPA ratio of 0.25% (₹111 crore).
  • Overseas: NPA ratio of 8.68% (₹1,399 crore).

Capital Adequacy

  • Capital to Risk-weighted Assets Ratio (CRAR) was 19.36% as of Jun-26, compared to 19.78% in Mar-26 and 18.28% in Jun-25.
  • CET-1 Ratio was 16.88%.
  • Tier-1 Capital was 16.88%.
  • Tier-2 Capital was 2.47%.
  • Total Capital stood at ₹41,364 crore.

Strengthening Financial Indicators

  • Net Interest Margin (NIM) Global improved to 3.37%, a 33 bps increase YoY. NIM Domestic was 3.48%.
  • Return on Assets (ROA) was 1.41%, up 27 bps YoY.
  • Return on Equity (ROE) was 22.69%, up 369 bps YoY.
  • Basic & Diluted EPS was ₹0.86 for the quarter.
  • Book Value per share was ₹15.79.

Operational Highlights

Customer Touch Points (Jun-26):

  • Domestic Branches: 3,522
  • Overseas Branches: 4
  • ATM/CR: 3,691
  • Business Correspondents (BCs): 13,401

Shareholding Pattern (as on 30.06.2026):

  • Government of India: 92.44%
  • Insurance Companies: 3.72%
  • Individuals: 2.40%
  • Foreign Portfolio Investors: 0.47%
  • Others: 0.97%

Digital Initiatives

The document extensively details the bank's digital transformation efforts, including:

  • IOB Digital Fixed Deposit: A 100% digital, paperless FD account opening process for new-to-bank customers using Aadhaar-based Video KYC.
  • VCIP: Video Customer Identification Process for instant digital account opening.
  • IOB Buddy: An AI-driven chatbot for customer support.
  • IOB Digital Hub: A centralized digital platform for all banking services.
  • Revamped Internet Banking (DEH): Integrated with Bill Desk, PayU, BBPS, and IOB Pay.
  • Unified Lending Interface (RBIH – ULI): The bank is among the top 2 PSBs in loan disbursements via ULI, having processed over 2.62 lakh accounts and disbursed over ₹5,700 crore.
  • Other initiatives include QR-based feedback, Video-based life certificate submission, Online Re-KYC, IOB Akshara PIN for secure PIN generation, and a Gold Loan digital processing system.

ESG Initiatives

Environmental (E): Financing renewable energy projects, offering IOB Solar Loans, promoting digital banking to reduce paper usage, and the 'IOB Harit Subhagruha' initiative focused on sustainability.

Social (S): Various credit schemes for women, operation of Financial Literacy Centers (Sneha), and fostering a friendly work environment.

Governance (G): Focus on effective customer complaint resolution, ethical management, transparency, and compliance. The bank was awarded the Skoch Award for its innovative 'Compliance Apexion' project.

Forward-Looking Statements

The document concludes with a standard disclaimer noting that statements containing words like 'will', 'aim', 'expect', etc., are forward-looking and involve risks and uncertainties. The bank undertakes no obligation to update these statements.