Indian Overseas Bank announced its Q3 FY26 financial results on 14th January 2026, reporting a robust improvement in profitability and healthy revenue growth. During the December 2025 quarter, the bank posted a 63.05% year-on-year jump in profit, supported by better asset quality, controlled costs, and stable core banking income.
Indian Overseas Bank (IOB) reported a Q3 FY26 consolidated Profit After Tax (PAT) of ₹1,427.16 crore and revenue of ₹9,671.58 crore, highlighting a strong turnaround trajectory compared to the same period last year.
This article provides a detailed breakdown of Indian Overseas Bank’s Q3 FY26 results, including consolidated and standalone performance, asset quality trends, share price movement, and analysts’ expectations.
Indian Overseas Bank Q3 FY26: Financial Snapshot
For the quarter ended 31st December 2025, Indian Overseas Bank delivered the following key numbers:
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Consolidated Revenue: ₹9,671.58 crore
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Consolidated PAT: ₹1,427.16 crore
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Standalone PAT: ₹1,365.12 crore
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Standalone Net NPAs: ₹707.92 crore
The numbers indicate strong earnings momentum and continued progress in balance sheet clean-up.
Indian Overseas Bank Q3 Results FY26: Consolidated vs Standalone
Extract of Q3 FY26 and Q3 FY25 Financials
| Particulars | Consolidated (Dec 2025) | Consolidated (Dec 2024) | Standalone (Dec 2025) | Standalone (Dec 2024) |
|---|---|---|---|---|
| Revenue from Operations | ₹9,671.58 Cr | ₹8,413.96 Cr | ₹9,671.58 Cr | ₹8,409.25 Cr |
| Net NPAs | – | – | ₹707.92 Cr | ₹975.91 Cr |
| Profit After Tax (PAT) | ₹1,427.16 Cr | ₹875.27 Cr | ₹1,365.12 Cr | ₹873.66 Cr |
Q3 FY26 vs Q3 FY25: Key Highlights
Consolidated Performance
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Revenue Growth:
Indian Overseas Bank reported consolidated revenue of ₹9,671.58 crore in Q3 FY26, compared to ₹8,413.96 crore in Q3 FY25, reflecting a 14.95% YoY increase. -
Profit Growth:
Consolidated PAT rose sharply to ₹1,427.16 crore, up from ₹875.27 crore in the corresponding quarter last year. -
YoY Growth Rates:
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Revenue growth: 14.95%
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PAT growth: 63.05%
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This performance underscores the bank’s improved earnings quality and operating leverage.
Standalone Performance
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Standalone Revenue:
₹9,671.58 crore in Q3 FY26 versus ₹8,409.25 crore in Q3 FY25. -
Standalone PAT:
₹1,365.12 crore in Q3 FY26 versus ₹873.66 crore in Q3 FY25. -
YoY Growth:
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Revenue: 15.01%
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PAT: 56.25%
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Standalone numbers highlight the strength of Indian Overseas Bank’s core banking operations.
Asset Quality Improvement: A Key Positive
Asset quality continued to improve during Q3 FY26:
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Standalone Net NPAs declined to ₹707.92 crore
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Net NPAs in Q3 FY25: ₹975.91 crore
The reduction in net NPAs reflects improved recoveries, lower slippages, and disciplined credit monitoring. Better asset quality directly contributed to lower provisioning costs and higher profitability.
What Drove Indian Overseas Bank’s Q3 FY26 Performance?
Key factors supporting the strong quarterly performance include:
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Lower Credit Costs:
Declining NPAs reduced provisioning pressure on profits. -
Healthy Interest Income Growth:
Improved loan book performance supported revenue expansion. -
Operational Efficiency:
Better cost management helped improve net profitability. -
Balance Sheet Strengthening:
Continued focus on recoveries and prudent lending improved financial stability.
Indian Overseas Bank Share Price Performance
Recent Stock Movement
On the opening bell of 15th January 2026, Indian Overseas Bank shares opened at ₹35.37 per share. After initial volatility, the stock moved slightly higher and is currently trading around ₹36.15 per share, above its opening price.
Returns Across Timeframes
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6-month return: -7.43%
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1-year return: 27.57%
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Long-term return: 270.77%
While short-term performance has been volatile, the long-term returns reflect the bank’s gradual turnaround and improving fundamentals.
Market Reaction to Q3 FY26 Results
The market response to Indian Overseas Bank’s Q3 FY26 results has been cautiously optimistic. Investors have welcomed:
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Strong YoY profit growth
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Improving asset quality
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Consistent revenue expansion
However, broader PSU banking sentiment and market volatility continue to influence near-term price movements.
Analysts’ Expectations After Q3 FY26 Results
Post Q3 FY26 results, analysts expect Indian Overseas Bank’s share price to trend higher over the medium term:
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Bullish Target (1 year): ₹54.60 per share
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Downside Scenario: ₹29.50 per share
Analysts believe sustained profitability, improving asset quality, and stable credit growth could support further upside, though macroeconomic and interest rate risks remain.
Risks to Consider
Despite improving fundamentals, investors should keep the following risks in mind:
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Interest Rate Fluctuations: Impact net interest margins
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PSU Banking Risks: Policy and regulatory changes
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Economic Slowdown: Could affect asset quality
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Market Volatility: Short-term price swings may persist
Long-Term Outlook
Indian Overseas Bank’s Q3 FY26 results reinforce its position as a recovering PSU bank with improving fundamentals. Continued focus on asset quality, profitability, and operational efficiency could help the bank deliver sustainable growth over the long term.
For investors with a moderate-to-high risk appetite, Indian Overseas Bank remains a turnaround play in the PSU banking space, best approached with a long-term perspective.
Conclusion
Indian Overseas Bank delivered a strong Q3 FY26 performance, with PAT growth of over 63% YoY and revenue growth of nearly 15%. Improving asset quality and stable operations have strengthened investor confidence, though stock performance may remain volatile in the short term.
As always, investors should align decisions with their risk tolerance and investment horizon.
Disclaimer:
Investment in the stock market is subject to risk. This article is for informational purposes only and does not constitute investment advice. Please conduct your own research or consult a qualified financial advisor before investing in shares or other securities.
