Indian Overseas Bank (IOB) Announces Remarkable Financial Growth

Public sector Indian Overseas Bank (IOB) has reported an impressive 75.6% increase in net profit for the quarter ending June 30, 2025, reaching Rs 1,111 crore, up from Rs 633 crore in the same quarter the previous year. This growth is attributed to a 13% rise in interest income year-over-year, totaling Rs 7,386 crore in Q1 FY26, alongside other income sources.

Strategic Financial Moves Ahead

The Chennai-based bank is planning to raise Rs 4,000 crore by the third quarter of the current fiscal year, with board approval already secured for an additional Rs 10,000 crore through infrastructure bonds. This move is part of IOB's strategy to strengthen its financial base and support future growth initiatives.

Operational Highlights and Future Outlook

IOB's net interest income saw a 12.5% increase to Rs 2,746 crore, while gross advances grew by 14% year-over-year. The bank has also improved its CASA ratio to 43.8% and reduced its gross non-performing assets ratio to 1.97%. With a focus on reducing expenses and enhancing other income streams, IOB aims to maintain its profitability in the upcoming quarters.

Leadership's Vision

Ajay Kumar Srivastava, MD & CEO of IOB, highlighted the bank's record-breaking quarterly net profit and outlined plans to sustain growth through strategic financial management and market opportunities. The bank is also working towards improving its net interest margin to 3.25% by the latter half of FY26.