State-run Indian Overseas Bank (IOB) has reported a strong performance for the fourth quarter of FY25, with its net profit rising to Rs. 1,051 crore, up from Rs. 808 crore in Q4FY24. This reflects a year-on-year (Y-o-Y) growth of 30.07%, or Rs. 243 crore. On a sequential quarter-on-quarter (Q-o-Q) basis, net profit rose by 20.25%.
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The bank also registered a significant increase in its operating profit, which climbed to Rs. 2,618 crore in Q4FY25 from Rs. 1,961 crore in Q4FY24 — a Y-o-Y growth of 33.50% (Rs. 657 crore). Sequentially, the operating profit rose by 15.53%.
Improved Asset Quality
IOB’s asset quality also showed marked improvement:
- The Gross Non-Performing Assets (GNPA) ratio dropped to 2.14% as of March 31, 2025, from 3.10% a year earlier — a reduction of 96 basis points. Compared to the previous quarter, the GNPA was down 41 basis points.
- The Net NPA ratio declined to 0.37% from 0.57% a year ago, reflecting a drop of 20 basis points, and a Q-o-Q reduction of 5 basis points.
- The Provision Coverage Ratio (PCR) improved to 97.30% as of March 31, 2025, compared to 96.85% in the same period last year. It also rose slightly from 97.07% reported on December 31, 2024.
Shares of Indian Overseas Bank were trading 0.56% higher at Rs. 37.74 on the NSE on Tuesday, reflecting investor confidence following the robust financial results.
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