Canara HSBC Life Insurance reported a 20.15% year-on-year increase in net profit to INR 28.14 crore for the quarter from April to June 2027 (Q1 FY27). This growth was driven by a stable increase in income from insurance premiums, investment receipts, and the development of protective business.
The company's net profit in the first quarter of the 2026 fiscal year was INR 23.4 crore. In the reporting period Q1 FY27, income from net insurance premiums increased by 23.83% year-on-year, reaching INR 2047.5 crore. Furthermore, the Annual Premium Equivalent (APE) expanded by 18.66% YoY, amounting to INR 585 crore.
The insurer's investment income grew by 16.2% year-on-year, reaching INR 2268.79 crore. Anuj Mathur, CEO and Managing Director of Canara HSBC Life Insurance, noted that protection remains a priority area, as the APE in the protection segment grew by 41.5% YoY, accounting for 13% of the total APE. He also emphasized that credit insurance continued to be a significant driver of growth, showing a healthy increase of 40.7% YoY.
The company's Value of New Business (VNB) increased by 29% year-on-year, reaching INR 124 crore compared to INR 96 crore in Q1 FY26. The VNB margin stood at 21.1%, higher than the previous figure of 19.4%. Mathur added that this improvement was due to a favorable shift in the product portfolio towards traditional and protection offerings. He stated the company's commitment to ensuring sustainable growth and creating long-term value in India's growing life insurance market.
The company's expenses also rose by 30% year-on-year, totaling INR 447.2 crore, while commission expenses increased by 22% YoY to INR 117 crore. As of June 30, 2026, the insurer's solvency ratio was 198%, compared to 200% the previous year. The customer retention rate at the 13th month improved to 85.9% in the quarter ending June 30, 2026, up from 84% on June 30, 2025, while the retention rate at the 61st month remained unchanged at 55.3%.
Indian Overseas Bank (IOB), a public sector lender, reported a significant increase in net profit for the first quarter of fiscal year 27. Net profit grew by 49.32% year-on-year to reach ₹1,659 crore, compared to ₹1,111 crore the previous year. This growth was driven by a strong increase in net interest income and non-interest income.
Compared to the fourth quarter of fiscal year 26, net profit increased by 10.23% to ₹1,505 crore. Net Interest Income (NII) for the reporting period reached ₹3,688 crore, which is 34.30% higher than the previous year. This reflects a slowdown in deposit cost growth, which decreased to 4.70% from 5.10% the year before.
Non-interest income showed an impressive year-on-year growth of 45.85%, reaching ₹2,160 crore. A significant contribution to this growth came from fees for Priority Sector Lending Certificates (PSLC), which more than tripled to ₹863 crore. Ajay Kumar Srivastava, Managing Director and CEO of Indian Overseas Bank, noted that the rise in non-interest income is primarily linked to PSLC sales and write-offs of technically written-off accounts, in addition to regular income.
The bank's domestic Net Interest Margin (NIM) improved by 31 basis points year-on-year, reaching 3.48% in the June quarter, while the global NIM grew by 33 basis points to 3.37%. General provisions decreased by 1.18% year-on-year to ₹834 crore (from ₹844 crore in Q1 FY26), although they fell consistently by 17.10% from ₹1,006 crore in Q4 FY26. Among these, provisions for Non-Performing Assets (NPA provisions) sharply decreased by 40.45% year-on-year to ₹106 crore.
Operating expenses increased by 68.81% year-on-year to ₹3,155 crore, largely due to an 80.45% rise in personnel costs to ₹2,104 crore. Other expenses rose by 49.36% to ₹1,050 crore. The sharp increase in personnel costs led to an increase in the cost-to-income ratio to 53.95% from 44.22% the previous year. Srivastava explained this increase by stating that the bank made a conscious decision to allocate nearly ₹1,100 crore in this quarter for personnel-related provisioning, covering the needs of the next three quarters.
Regarding asset quality, Gross Non-Performing Assets (GNPA) as of June 2026 stood at ₹4,292 crore, which is 17.11% less than the previous year (₹5,178 crore). Net NPAs decreased by 27.94% to ₹588 crore (from ₹816 crore). The GNPA ratio improved to 1.33% (from 1.97% a year ago and 1.42% in the previous quarter). The Net NPA ratio was 0.18% compared to 0.32% the previous year. The Provision Coverage Ratio (PCR) improved to 97.67% from 97.47% the previous year. The bank's Capital to Risk-weighted Assets Ratio (CRAR) as of June 2026 was 19.36%, higher than 18.28% the previous year.
In terms of business, global loans reached ₹3.22 trillion as of June 2026, showing a year-on-year growth of 22.75%. Meanwhile, total deposits increased by 13.72% to ₹3.76 trillion, bringing the bank's total business volume to ₹6.98 trillion, an increase of 17.72%. The Retail, Agriculture, and MSME (RAM) segment continued to gain share, reaching 81.21% of domestic lending (compared to 73.39% the previous year), with agricultural loans growing by 46.84% and retail loans by 36.49% year-on-year.
Current Account and Savings Account (CASA) deposits grew by 6.61% year-on-year to ₹1.54 trillion. However, the share of CASA out of total deposits (globally) decreased to 41.05% from 43.78% the previous year, as term deposits grew faster. The loan-to-deposit ratio (globally) increased to 85.63% from 79.33%, representing a rise of 630 basis points year-on-year.
Jana Small Finance Bank reported a significant increase in net profit for the first quarter of fiscal year 27. During the reporting period from April to June, the bank demonstrated a 52% growth in net profit compared to the same period last year, reaching 155 crore rupees. This success was attributed to a strong increase in net interest income, active growth in the loan portfolio, and expansion of the secured loan portfolio.
Net Interest Income (NII) increased by 33.4% year-on-year, amounting to 782 crore rupees. Meanwhile, other incomes slightly decreased, falling to 215 crore rupees from 235 crore rupees the previous year. The bank's Net Interest Margin (NIM) consistently rose by 30 basis points, reaching 7.5% in the first quarter of FY27.
Provisions and unforeseen expenses slightly decreased to 178 crore rupees in Q1 FY27, compared to 187 crore rupees the previous year and 195 crore rupees in Q4 FY26. Write-offs also decreased sequentially by 13%, totaling 291 crore rupees.
The volume of loans disbursed increased by 26% year-on-year and 4% sequentially, reaching 37,612 crore rupees. The secured portfolio grew by 29% year-on-year and 4% sequentially. The gold loan segment showed the fastest growth, increasing by 113% year-on-year, followed by auto loans, which grew by 78%. Growth in the affordable housing segment reached 29%, and MSME loans grew by 27%. Conversely, the growth of the Loan Against Property (LAP) microloan portfolio slowed to 5% year-on-year.
Currently, the secured portfolio accounts for almost 73% of the total outstanding loans. Meanwhile, the unsecured portfolio grew by 18% year-on-year and 3% sequentially, reaching 10,240 crore rupees. Deposits, in turn, increased by 22% year-on-year, totaling 35,756 crore rupees.
For fiscal year 27, the bank forecasts asset growth of 19–21%, deposit growth of 23–25%, and profit increase of over 80%. The bank also clarified that Jana Holdings and Jana Capital, the current promoters, were classified as being in technical default on the payments of Non-Convertible Debentures (NCD) after extending the maturity of these instruments by six months to provide additional time to sell their stake.
Jana Holdings' stake in the bank decreased from a peak of 44% to 16.9%. Both Jana Holdings and Jana Capital plan to seek approval for de-promoterization from the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) once their stake falls below 9.99%. It was noted that Jana Holdings has not injected capital into the bank since June 2022, has no representation on the bank's board of directors, and there are no cross-holdings between the entities. The bank also assured that there is no cross-default link between the debt of Jana Small Finance Bank and the debt of Jana Holdings or Jana Capital. Although India Ratings placed the bank under 'watch' following actions against Jana Holdings and Jana Capital, the bank stated that operations continue as usual. Meanwhile, CARE Ratings confirmed the bank's rating without any changes.
