Indian Overseas Bank (IOB) on Thursday posted a robust 74% year-on-year (YoY) rise in standalone net profit for the quarter ended June 30, 2025 (Q1 FY26), climbing to ₹1,111.1 crore compared to ₹638.2 crore in the same period last year. The impressive growth was underpinned by higher operating profit and improved asset quality.
Key highlights of Q1 FY26:
-
Net profit: ₹1,111.1 crore, up 74% from ₹638.2 crore YoY.
-
Total income: ₹8,866.47 crore versus ₹7,586 crore in Q1 FY25.
-
Operating profit (before provisions & contingencies): ₹2,357.95 crore, up from ₹1,675.86 crore YoY.
-
Net interest income (NII): ₹7,385.55 crore, registering a 34% increase from ₹5,503 crore YoY.
-
Earnings per share (EPS): ₹0.58 compared to ₹0.33 last year.
The bank also strengthened its asset quality during the quarter:
-
Gross NPA: ₹5,17,846 lakh, improving from ₹6,64,871 lakh a year ago.
-
Gross NPA ratio: Fell to 1.97% from 2.89% YoY.
-
Net NPA: ₹81,638 lakh, down from ₹1,15,351 lakh YoY.
-
Net NPA ratio: Improved to 0.32% from 0.51% YoY.
-
Provisions: ₹844 crore versus ₹1,063 crore QoQ.
On the capital front, IOB reported a CET1 ratio of 15.78% and a total capital adequacy ratio of 18.82%, reflecting a healthy buffer above regulatory requirements.
The lender’s interest income rose significantly to ₹7,385.55 crore in Q1FY26 from ₹5,503 crore a year earlier, while operating expenses increased modestly to ₹1,862.92 crore, aided by effective cost control measures.
Gross advances and deposits continued to grow steadily, boosting margins and supporting overall profitability.
These results underscore IOB’s sustained focus on maintaining asset quality, enhancing operational efficiency, and driving growth momentum amid a supportive economic backdrop.
