Indian Overseas Bank (IOB) reported a 30% year-on-year (YoY) jump in net profit to ₹1,051 crore for the fourth quarter ended March 31, 2025, compared to ₹808 crore in the corresponding quarter last year. The strong performance was supported by healthy growth in core income and improved asset quality.
Net Interest Income (NII) for the quarter stood at ₹3,123 crore, up 13% from ₹2,763 crore in Q4 FY24. The bank’s gross non-performing assets (NPA) ratio improved to 2.14% from 2.55% in the previous quarter, while the net NPA came down to 0.37% from 0.42%.
For the full financial year, IOB posted a net profit of ₹3,334 crore, significantly higher than ₹2,656 crore in FY24. Total income rose to ₹33,678 crore from ₹29,706 crore in the previous year, while operating profit before provisions surged to ₹8,681 crore.
The board has also approved a capital raising plan for FY26:
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Equity Capital: Up to ₹4,000 crore through various modes including FPO, rights issue, QIP, ESPS, or preferential issue, subject to shareholder and regulatory approvals.
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Tier II Capital: Up to ₹1,000 crore via Basel III-compliant Tier II bonds, with or without a green shoe option, through private or public placement—domestic or overseas.
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