Indian Overseas Bank shares rise 2% after Q1 results; profit up 76% YoY

Indian Overseas Bank shares rose sharply after the bank reported a 76 per cent jump in its net profit year-on-year

Shares of Indian Overseas Bank (IOB) saw a sharp surge after the lender reported a 76 per cent jump in their net profit, aided by a jump in other income. 

 

The public sector bank (PSB) stock reversed early losses to rise as much as 2.03 per cent during the day, hitting ₹40.64 per share. The stock pared gains to trade 0.6 per cent higher at ₹40.05 apiece, compared to a 0.66 per cent decline in Nifty 50 as of 1:10 PM. 

 

Shares of the company rose for the fourth day and currently trade at 2.2 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 23 per cent this year, compared to a 5.5 per cent advance in the benchmark Nifty 50. IOB has a total market capitalisation of ₹76,641.23 crore.  

Indian Overseas Bank Q1 results 

The lender reported a strong performance for the quarter ended June 2025, with its standalone net profit rising 75.6 per cent year-on-year (Y-o-Y) to ₹1,111 crore, compared to ₹633 crore in the same period last year.

 

The lender’s net interest income (NII), the difference between interest earned and interest expended, increased 13 per cent to ₹2,747 crore, up from ₹2,441 crore a year ago. Operating profit jumped 40.7 per cent to ₹2,358 crore from ₹1,676 crore in the year-ago quarter.

 

IOB also reported an improvement in asset quality. The gross non-performing asset (NPA) ratio declined to 1.97 per cent from 2.14 per cent in the previous quarter, while the net NPA ratio fell to 0.32 per cent from 0.37 per cent sequentially.

 

In the fourth quarter of FY25, the net profit grew 35 per cent Y-o-Y to ₹1,091.94 crore, 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.  

About Indian Overseas Bank 

Indian Overseas Bank (IOB) is a public sector bank in India, established in 1937 by M. Ct. M. Chidambaram Chettyar with a focus on foreign exchange and overseas banking. 

 

The bank began its journey by simultaneously opening branches in Karaikudi, Madras (Chennai), and Rangoon (Yangon). Over the years, it has grown into a trusted financial institution, providing comprehensive banking services.

 

Headquartered in Chennai, IOB caters to diverse customer needs with offerings like retail banking, personal banking, merchant banking, and digital banking services.