By BullScreen Editorial Team 
Indian Overseas Bank reported a strong performance in its Q1 results 2027, with net profit rising 49% year-on-year to ₹1,659 crore in the April-June quarter, compared with ₹1,111 crore in the same period last year. The Chennai-based state-run lender benefited from lower provisions for bad loans and strong loan growth.
Net interest income (NII), the difference between interest earned on loans and interest paid on deposits, increased 34% to ₹3,688 crore from ₹2,746 crore a year earlier. Domestic net interest margin stood at 3.48%, while global NIM was 3.37%.
The bank’s asset quality also improved significantly. Gross non-performing assets (NPAs) declined to 1.33% from 1.97% a year ago, while gross NPAs in absolute terms stood at ₹429 crore. Provisions for bad loans fell 41% to ₹105 crore during the quarter.
Advances grew 23% to ₹3.22 lakh crore, while total business increased 18% to ₹6.98 lakh crore. Total NPA recoveries stood at ₹654 crore, more than three times quarterly slippages of ₹195 crore. The slippage ratio fell to a historic low of 0.06%.
Indian Overseas Bank shares rose as much as 4.87% to ₹35.50 after the earnings announcement, outperforming the NIFTY PSU Bank index. Trading volume surged eight times to 1.98 crore shares, signalling strong investor interest in the Q1 results 2027.