The bank is expecting 12-13 per cent credit growth and 14-15 per cent deposit growth in FY2027, amid the West Asia tensions, he said in a post-earnings media interaction.
IOB recorded its highest-ever consolidated net profit of Rs 1,556 core in the fourth quarter of FY 2026, up 42.5 per cent from Rs 1,051 crore in the comparable period last year.
For FY2026, net profit grew 56 per cent to Rs 5,419 crore from Rs 3,335 crore in the previous financial year.
The bank posted a annual operating profit of Rs 10,026 crore, crossing the the Rs 10,000- crore mark for the first time.
Srivastava attributed the performance to improving asset quality, lower provisioning, credit growth and steady income streams.
The bank was also aided by a shift to a new tax regime. Earlier the bank was paying tax at 40 per cent and now it is at 25 per cent.
Srivastava said that MSME accounts in select pockets were showing some stress due to the West Asia conflict. The situation, however, was not alarming, he added.
“However, if the war persists, it could have an impact on credit growth,” he said.
In the fourth quarter, IOB’s net interest income grew 11.1 per cent to Rs 3,470 crore. However, non-interest income declined 18.3 per cent due to lower treasury income.
The net interest margin (NIM) stood at 3.33 per cent in FY 2026 when compared to 3.42 per cent in FY 2025.
Srivastava said the bank would maintain NIM at 3.21-3.30 per cent in FY2027.
IOB’s total business increased 20.8 per cent to Rs 6.79 lakh crore as at the end of March 2026, while advances increased 24.1 per cent to Rs 3.10 lakh crore.
RAM (Retail, Agri. & MSME) business grew by 34.91 per cent on a Y-o-Y basis.
The bank’s gross non-performing assets (NPAs) stood at 1.42 per cent in the fourth-quarter, compared to 2.14 per cent in the same quarter last year. Net NPAs declined to 0.21 per cent in March 2026 from 0.37 per cent in the year-ago period.
With respect to the new Expected Credit Loss (ECL) framework that kicks off from 1April, IOB has already created Rs 1,750 crore in the December quarter, and Rs 250 crore in the fourth quarter and is continuing to evaluate further provisioning, Srivatava said .
He also said the bank has a competent information security team in place and have been advised to closely monitor and prepare for any potential developments around the Mythos release.
Mythos, the new AI model from Anthropic is reportedly capable of exploiting cybersecurity lapses in the banking.