IOB net profit crosses Rs 1K-crore mark for first time; up 35% in Q4
Indian Overseas Bank reports record Q4 net profit of Rs 1,091.94 crore, plans Rs 4,000 crore capital raise in FY26 as asset quality and capital adequacy continue to improve
 "IOB net profit crosses Rs 1K-crore mark for first time; up 35% in Q4")
State-run Indian Overseas Bank’s (IOB’s) net profit grew 35 per cent year-on-year (Y-o-Y) to ₹1,091.94 crore in the fourth quarter of FY25 — the first instance of the lender reporting a quarterly net profit of more than ₹1,000 crore.
The bank’s total operating income increased 15 per cent Y-o-Y to ₹7,634.81 crore. IOB Managing Director and Chief Executive Officer Ajay Kumar Srivastava said the bank was expecting 13-14 per cent growth across sectors in FY26. He added the lender would raise ₹4,000 crore this financial year, reducing the government shareholding to 90 per cent from 94.61 per cent. This fundraise may be through a follow-on public offer, rights issue, qualified institutional placement of shares, or any other mode or combination in one or more tranches in FY26.
For full FY25, the bank's net profit rose 27 per cent to ₹3,395.51 crore, as against ₹2,665.66 crore in FY24. Total operating income was up 17 per cent at ₹28,143.64 crore.
On the asset quality front, the bank's gross non-performing assets (NPAs) moderated 96 basis points to 2.14 per cent, compared to 3.10 per cent in FY24. Similarly, net NPAs came down to 0.37 per cent of advances, from 0.57 per cent at the end of 2024. The bank’s total provision eased to ₹200 crore, as against ₹409 crore a year ago. Its provision coverage ratio increased to 97.30 per cent in FY25 from 96.85 per cent in FY24. The bank’s capital adequacy ratio rose to 19.74 per cent from 17.28 per cent at the end of FY24.
Total business of the bank stood at ₹5.61 trillion, growing 11 per cent Y-o-Y. Total deposits increased ₹26,034 crore to stand at ₹3,11,938 crore. Gross advances increased 14 per cent Y-o-Y to ₹2.5 trillion. Casa deposits increased to ₹1,36,161 crore from ₹1,25,508 crore, reflecting 8.49 per cent Y-o-Y growth.