Indian Overseas Bank’s (IOB) quarterly net profit raced past ₹1,000 crore for the first time in the quarter ended March on the back of the public sector lender’s total business increasing 11.30% year on year to ₹5,61,958 crore, net interest income (NII) rose 13.03% to ₹3,123 crore and even as a corporate account turned into a non-performing asset (NPA).
Net profit increased a little over 30% to ₹1,051 crore during the fourth quarter compared to ₹808 crore a year earlier. For the December quarter, the Chennai-headquartered bank had reported ₹874 crore net profit.
The IOB Board has approved proposals to raise equity capital up to ₹4,000 crore; and tier II capital by issue of BASEL III-compliant tier II bonds of up to ₹1,000 crore in 2025-26. Both are likely to be raised in a few tranches, Managing Director and CEO Ajay Kumar Srivastava said on Friday.
On completion of the equity capital raise, which is subject to obtaining the approval of shareholders and statutory/regulatory approvals, the government holding in the bank will come down from 94.6% to 90%.
For FY25, IOB’s net profit increased 25.56% to ₹3,335 crore (₹2,656 crore) and NII by 10.79 % at ₹10,890 crore (₹9,829 crore).
Recovery during the March quarter stood at ₹992 crore and for the fiscal at ₹4,014 crore, he said, adding the bank is in a sound position despite the MTNL account of around ₹2,330 crore turning NPA. IOB had made 100% provisioning, he said, pointing out that other banks have also classified MTNL as NPA.
IOB’s gross GNPA ratio stood at 2.14% as on March 31, 2025 as against 3.10% a year earlier, while net NPA ratio was at 0.37% as against 0.57%. Provision coverage ratio improved to 97.30% as on March 31 as against 96.85% a year earlier.
On the outlook for FY26, Mr.Srivastava said IOB expected to grow the business by 13-14%.
Published – May 02, 2025 09:45 pm IST
