Indian Overseas Bank (IOB) reported a strong financial performance for the March 2025 quarter, posting a record net profit of Rs 1,051 crore, a 30 per cent year-on-year increase. This is despite a major corporate account, MTNL, slipping into non-performing asset (NPA) category. For the first time, IOB’s quarterly net profit has crossed the Rs 1,000 crore-mark, underscoring robust operational efficiency and improved asset quality. The bank provided fully for the Rs 2,332 crore MTNL account, reflecting its enhanced financial resilience.
For the full year ended 31 March 2025, IOB achieved significant milestones, with its total business mix (advances plus deposits) reaching Rs 5.61 lakh crore, up 11.3 per cent from the previous year. This is the first time the bank has surpassed the Rs 5.5 lakh crore threshold. The bank’s total deposits rose by 9.11per cent year-on-year to Rs 3,11,939 crore, while gross advances grew 14.15 per cent to Rs 2,50,019 crore.
IOB’s operating profit for FY25 stood at Rs 8,688 crore, a jump of 28.44 per cent, while net profit rose by 25.56 per cent to Rs 3,335 crore. Total income grew 13.36 per cent to Rs 33,636 crore, driven by higher yields and better margins, particularly from the RAM (Retail, Agriculture, and MSME) segment. The bank continued to strengthen its asset quality, with the gross NPA ratio falling to 2.15 per cent from 3.10 per cent a year ago, and net NPAs declining to 0.37 per cent from 0.57per cent. Gross NPAs reduced from Rs 6,794 crore to Rs 5,348 crore, and net NPAs from Rs 1,217 crore to Rs 912 crore.
“Even with a big account like MTNL turning NPA, we provided fully and still delivered a record profit. Our improved margins, lower NPAs and strong capital base reflect the bank’s growing strength and internal soundness,” said Ajay Kumar Srivastava, MD and CEO. Srivastava has provided a business growth guidance of 13- 14 per cent for FY26, stating that credit growth is expected to be around 14 – 15 per cent, with IOB aiming to match deposit growth at approximately 13 per cent. The bank has received board approval to raise Rs 4,000 crore in equity capital and Rs 1,000 crore in Tier-II capital through the issuance of Basel III-compliant Tier-II bonds in FY26.
