Indian Overseas Bank (IOB) shares rose nearly 6% today following the announcement of its robust Q3 FY25 financial performance. The bank delivered strong numbers across key metrics while showcasing improvements in asset quality.
As of 12:41 pm the shares were trading 5% higher at₹53.17 on NSE.
Key Financial Highlights:
- Total Income: ₹8,40,925 lakh, a significant rise from ₹7,43,717 lakh in Q3 FY24.
- Net Profit: ₹87,366 lakh, marking a YoY increase of 21% from ₹72,256 lakh in Q3 FY24 and a QoQ rise of 12.86% from ₹77,716 lakh in Q2 FY25.
- Operating Profit: ₹2,26,601 lakh, up 27.25% YoY from ₹1,78,020 lakh in Q3 FY24.
Asset Quality Improvements:
- Gross NPA: Improved to ₹6,07,051 lakh (2.55% of advances), better than 2.72% in Q2 FY25 and 3.90% in Q3 FY24.
- Net NPA: Reduced to ₹97,591 lakh (0.42%), down from 0.47% in Q2 FY25 and 0.62% in Q3 FY24.
Operational Insights:
- Interest Income: ₹7,11,172 lakh, up from ₹6,85,067 lakh in Q2 FY25.
- Other Income: ₹1,29,753 lakh, higher than ₹1,26,166 lakh in Q3 FY24 but lower than ₹1,63,347 lakh in Q2 FY25.
- Total Expenditure: ₹6,14,324 lakh, showcasing controlled costs compared to ₹6,35,592 lakh in Q2 FY25.
Return Metrics:
- Return on Assets (ROA): Improved to 0.93%, up from 0.82% in Q2 FY25 and 0.76% in Q3 FY24.
The improved performance and better asset quality have driven investor sentiment, leading to the stock’s surge. Analysts believe this positions Indian Overseas Bank for continued growth in the upcoming quarters.
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IOB