Indian Overseas Bank Q1 Financial Highlights

State-owned Indian Overseas Bank (IOB) has reported a remarkable 76% year-on-year (YoY) increase in net profit, reaching Rs 1,111 crore for the quarter ended June 2025. This significant growth is attributed to enhanced income and improved asset quality.

Income and Operating Profit Growth

The bank's total income for the April–June quarter of FY26 rose to Rs 8,866 crore, up from Rs 7,568 crore in the same period last year. Interest income also saw a healthy increase to Rs 7,386 crore from Rs 6,535 crore in the previous year. Operating profit for Q1 surged to Rs 2,358 crore, compared to Rs 1,676 crore last year.

Asset Quality Improvement

IOB's commitment to improving asset quality is evident as gross non-performing assets (NPAs) decreased to 1.97% of gross advances, down from 2.89% a year ago. Similarly, net NPAs fell to 0.32%, against 0.51% in the same period last year.

Capital Adequacy Ratio

The bank's capital adequacy ratio improved to 18.28% at the end of June 2025, up from 17.82% a year earlier, showcasing its financial stability and growth potential.