Indian Overseas Bank Reports Significant Financial Growth

Public sector Indian Overseas Bank (IOB) has announced a remarkable 30% increase in net profit, reaching Rs 1,051 crore in the quarter ended March 31, 2025. This marks the first time the bank has surpassed the Rs 1,000 crore mark in quarterly net profit.

Financial Highlights

The bank's net interest income (NII) saw a 13% rise to Rs 3,123 crore, while the operating profit grew by 33.5% to Rs 2,618 crore. The net interest margin (NIM) remained stable at 3.77%.

Improvement in Asset Quality

Gross non-performing assets (GNPA) ratio improved significantly, dropping by 96 bps to 2.14%, and the net NPA ratio decreased to 0.37%. The CASA ratio stood at 43.65% for the quarter.

Future Outlook

IOB's MD & CEO Ajay Kumar Srivastava expressed optimism for continued growth, targeting a 13%-14% business growth in FY26 and maintaining quarterly net profits around Rs 1,000 crore. The bank plans to raise Rs 4,000 crore through qualified institutional placement (QIP), reducing the Centre's holding to approximately 90%.