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Indian Overseas Bank (IOB), based in Chennai, reported a 56% increase in net profit during the second quarter of the fiscal year 27, reaching 1963 crore rupees. This growth compared to 1259 crore rupees in the quarter from July to September of fiscal year 26, and is attributed to increased interest income and improved asset quality.

The bank's total income for the reporting period increased by 13%, amounting to 10,428 crore rupees. IOB's interest income in Q2 FY27 rose by 17% to 9,201 crore rupees, compared to 7,851 crore rupees in the same period last year.

Ajay Kumar Srivastava, Managing Director and CEO of IOB, noted that net interest income grew by 26% during the quarter. He also highlighted the good asset quality and low write-off levels in the system.

Net Interest Income (NII) for the quarter increased by 26.4% to 3,867 crore rupees, compared to 3,059.3 crore rupees a year earlier. Srivastava added that write-offs remained under control at 240 crore rupees, and the provisioning ratio was only 0.07%, which is one of the lowest in the banking system, and the bank consistently maintains this figure.

The Non-Performing Asset (NPA) ratio decreased by 64 basis points (bps) year-on-year (Y-o-Y) to 1.19%, while the Net NPA ratio fell by 12 bps year-on-year to 0.16%. Credit costs also decreased by 1 bp year-on-year to 0.17%. During the quarter, 647 crore rupees were recovered against NPAs, which is 2.95 times higher than quarterly write-offs. The Capital to Risk-Weighted Assets Ratio (CRAR) increased by 66 bps year-on-year to 18.60%. Return on Assets (RoA) improved to 1.53% from 1.20% last year, which is 33 bps higher. Return on Equity (RoE) grew to 24.58% from 19.95% last year, an increase of 463 bps.

The bank's total deposits increased by 20.16% to 4.07 trillion rupees from 3.39 trillion rupees. Current Account Savings Account (CASA) deposits also grew by 20.73% year-on-year to 1.65 trillion rupees, and the internal CASA ratio improved by 13 bps year-on-year to 41.14%. The volume of loans disbursed in Q2 FY27 reached 3.45 trillion rupees, showing a growth of 24.35% compared to 2.77 trillion rupees last year.

Srivastava stated that, according to preliminary estimates, IOB will require additional provisioning of about 2,600–2,800 crore rupees under Expected Credit Losses (ECL). He clarified that the bank has already created ECL provisions of about 2,700 crore rupees, meaning that 100% of the required amount is already secured in the balance sheet as projected ECL reserves.

Furthermore, he mentioned the successful performance of the gold loan portfolio and the development of several programs to meet the needs of various segments of society with competitive interest rates. Srivastava added that the jewelry loan portfolio is very sound, with outstanding loans amounting to nearly 1.36 trillion rupees, and shows no signs of stress. The bank maintains a Loan-to-Value (LTV) ratio of about 60–62%, which adequately accounts for price fluctuations.

Jammu and Kashmir Bank reported a 10.6% increase in net profit to 546.36 crore rupees for the second quarter ending September 30. This growth is attributed to increased income and improved asset quality of the bank.

In the reporting period, the bank's net interest income increased by 5% compared to the previous year, reaching 1,502 crore rupees. Additionally, other incomes more than doubled, amounting to 314.90 crore rupees compared to 153.76 crore rupees a year earlier.

The bank presented its financial results after the Board of Directors reviewed and approved the quarterly and half-yearly figures at a meeting at the company's headquarters on Thursday.

A year ago, the bank earned a net profit of 494.11 crore rupees. Compared to the first quarter of the current fiscal year, profit has consistently grown by 28.8%, increasing from 424.18 crore rupees.

For the first half of the current fiscal year, the bank's operating expenses rose by 1.5%, and operating profit exceeded 15%, reaching 1,492 crore rupees. The cost-to-income ratio was 56.57% for the quarter, which is lower than the 60.79% recorded a year ago.

The bank's return on assets consistently increased by 20 basis points, reaching 1.07% in this quarter. Amitava Chatterjee, Managing Director and CEO of J&K Bank, noted that the growth in net interest income, the doubling of other incomes, and the increase in operating profit by more than 26% year-on-year are signs of strengthening income metrics.

He added that the recovery of return on assets above 1% highlights an improvement compared to the June quarter. In the first quarter, the bank focused on expanding its customer base and preparing for stronger future earnings. The second half of the year will focus on maintaining core income growth, strengthening stable revenue sources, improving recovery rates, and reducing funding costs through deepening deposit relationships.