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%.

US President Donald Trump’s 2026 budget proposal outlines sweeping cuts to non-defence domestic spending, totalling $163 billion, while ramping up expenditures on national security, the White House announced Friday.
The proposal targets diversity initiatives and climate change programs, reflecting the administration’s political priorities. However, it notably omits detailed projections for income taxes, tariffs, or the federal deficit — a sign of the significant political and financial challenges Trump faces as he pledges tax cuts and debt repayment without harming economic growth, according to news agency AP.
While presidential budgets are not binding, they serve as key indicators of an administration’s goals for the upcoming fiscal year. This marks Trump’s first budget since returning to the White House and underscores his second-term agenda alongside Republican efforts in Congress.
Trump’s proposal comes amid a volatile economic environment triggered in part by his own tariff policies. The White House has imposed what could amount to hundreds of billions of dollars in tax increases through tariffs, raising concerns among consumers, CEOs, and global leaders about the risk of an economic downturn.
The top-line figures released by the Office of Management and Budget (OMB), now led by Russell Vought — a key figure in Project 2025 — reflect a “skinny” version of the budget, with more specifics promised in the coming weeks. “Details soon,” Vought told a Cabinet meeting earlier this week.
With the federal budget surpassing $7 trillion, deficits nearing $2 trillion annually, and interest payments on the national debt approaching $1 trillion, the US debt has ballooned to $36 trillion. Much of this stems from pandemic-related spending, tax code changes, and increasing costs tied to aging-related healthcare programs like Medicare and Medicaid.
The 2026 proposal reflects prior cost-cutting actions by Trump and the Department of Government Efficiency, now overseen by adviser Elon Musk, including a trimmed-down federal workforce. It may also preview new revenue sources, particularly from tariffs.
Democrats are expected to fiercely oppose the plan, calling it a blueprint for slashing vital public programs. At the same time, congressional Republicans are working to draft Trump’s “big, beautiful bill” — a comprehensive legislative package combining tax cuts, spending reductions, and increased funding for mass deportations.
House Speaker Mike Johnson, who has met with Trump multiple times this week, aims to pass the bill through the House by Memorial Day and forward it to the Senate. “We had a very productive and encouraging meeting at the White House this morning, and the remaining pieces of ‘The One, Big Beautiful Bill!’ are coming together very well,” Johnson, R-La., said in a statement following Thursday’s meeting with Trump and key committee leaders.
Still, divisions persist within the Republican ranks as they try to pass the bill over Democratic opposition. “We are awaiting some final calculations on a few of the tax components, and we expect to be able to complete that work on a very aggressive schedule,” Johnson added.
Cabinet officials are now preparing to testify before Congress on their respective budget requests, with Vought expected to appear in the coming weeks to defend the administration’s plan.
A veteran of conservative fiscal policy, Vought previously served in the same role during Trump’s first term and authored a chapter in Project 2025 detailing a federal government overhaul. He is also preparing a $9 billion rescission package aimed at cutting current 2025 funding for the US Agency for International Development and the Corporation for Public Broadcasting, which includes PBS and NPR.
On Thursday, Trump signed an executive order instructing federal agencies and the Corporation for Public Broadcasting to halt funding for PBS and NPR — a move that aligns with the rescission package and signals more cuts could follow

Union Minister of Commerce and Industry Piyush Goyal and British Trade Minister Jonathan Reynolds. File
| Photo Credit: Reuters

Union Minister of Commerce and Industry Piyush Goyal met his British counterpart, Trade Minister Jonathan Reynolds, on Friday (May 2, 2025) in an unscheduled resumption of talks as the countries seek to clinch a free trade deal.

Mr. Goyal returned to London for the talks, a British government spokesperson said, after a two-day visit earlier in the week ended without a final agreement.

Talks between Britain and India on a free trade agreement started in January 2022, as Britain sought to forge an independent trade policy after leaving the European Union.

Also Read | U.K. ‘committed’ to negotiating a trade deal with India: Downing Street

After talks were delayed by a churn in British politics, with four different Prime Ministers in office since negotiations began, the Labour government that took power last year looked set to clinch a deal imminently.

The British and Indian governments each said that talks earlier in the week had been constructive.

Businesses briefed on the outline of a deal on Tuesday said only a few issues remained outstanding, according to sources familiar with the discussions. Areas such as the reduction of tariffs on whisky and autos had been finalised, they added.

Britain and India are also looking to conclude separate treaties on investment and social security, negotiated alongside the free-trade agreement.