Indian Overseas Bank (IOB) has reported its record of 1,111 crore in the first quarter of fiscal 26, a 76% rise over last year when it recorded 633 crore during the previous quarter in fiscal 25. The bank's leadership explained the performance by providing consistent profits and operational momentum, even though Q1 is typically the leanest period. The previous quarter was also the time when IOB recorded a net profit of 1051 crore, also a record.
Based in Chennai, IOB is still hopeful that it will be able to stay on this path. Managing Director and Chief Executive Officer Ajay Kumar Srivastav stated that the bank is confident in its ability to maintain and perform even better. The bank's new target is to achieve a total rate of growth in its businesses of 12% in FY26, which aligns with its business growth last year.
The bank was also well placed in its recovery activities. Srivastava reaffirmed that IOB has already reclaimed 851 crores in Q1 and is sure that it will achieve its entire recovery target of 4,500 crores on a cumulative basis. Over the last two years alone, the bank has managed to recover up to 1,000 crore annually. Such performance highlights the level of attention the bank pays to efficient borders in the management of assets and monetary security.
In the current financial year, IOB projects a 1213 per cent credit growth. The bank is seeking regulatory approval to open a branch in GIFT City, Gujarat. Srivastava stressed that opening a branch at this financial hub will be among the chief priorities and will be implemented as soon as the approvals can be obtained.
Tamil Nadu also creates good demand for the IOB loan portfolio made of gold. This segment has been continuously boosting an annual growth of 37 -38% within the past few years, and the bank anticipates the same in FY26. Gold loans continue to be a significant business line in IOB's retail lending.
The IOB targets to raise 4,000 crores in the FY26, probably in Q3, in one or two tranches to sustain its planned development. In the wake of this capital injection, the share of the Government of India in the bank will be diminished by 2-3% to approx 90%, and this is to be in line with the institution's overall financial strategy.