Record-Breaking Quarterly Performance

Public sector lender Indian Overseas Bank (IOB) has reported its highest-ever quarterly net profit of Rs 1,111 crore in the April–June 2025 quarter, marking a significant 76 per cent year-on-year jump from Rs 633 crore. The Chennai-headquartered bank is optimistic about sustaining and growing this performance throughout FY26.

Leadership's Confidence in Growth

IOB's Managing Director and CEO, Ajay Kumar Srivastava, expressed unwavering confidence in maintaining and exceeding current performance levels. Despite Q1 traditionally being a lean quarter, the bank's net profit has shown consistent growth, with the previous quarter also setting a record at Rs 1,051 crore.

Ambitious Targets for FY26

The bank is targeting a 12 per cent overall business growth in FY26, mirroring the previous year's achievements. Additionally, IOB aims to meet its annual recovery target of Rs 4,500 crore, having already recovered Rs 851 crore in Q1. The bank's gold loan portfolio, especially in Tamil Nadu, continues to be a strong segment, growing at 37–38 per cent annually.

Expansion and Fundraising Plans

IOB is in the process of obtaining approvals to open a branch at GIFT City in Gujarat and plans to raise Rs 4,000 crore in FY26, likely in Q3. This move is expected to reduce the Government of India's stake from 94 per cent to around 90 per cent.