Indian Overseas Bank Net Profit Jumps to historic high of Rs 1,111 Cr
In terms of business growth, Indian Overseas Bank total business expanded by 12.19% to Rs 5,93,213 crore.
Indian Overseas Bank reported year-over-year growth of 75.57%.
New Delhi: Indian Overseas Bank (IOB) has reported a historic high net profit of Rs 1,111 crore for the quarter ended June 30, 2025, marking a year-over-year growth of 75.57%. The operating profit also saw a significant increase of 40.70% to Rs 2,358 crore, while the Net Interest Income grew by 12.50% to Rs 2,746 crore. The bank's Net Interest Margin (NIM) stood at 3.04% as of June 30, 2025. Profitability ratios showed substantial improvement, with Return on Assets (ROA) increasing by 44 basis points to 1.14% and Return on Equity (ROE) improving by 490 basis points to 19.00%. The Cost to Income Ratio also saw an improvement of 754 basis points, reaching 44.22%.
In terms of business growth, IOB's total business expanded by 12.19% to Rs 5,93,213 crore. Total deposits rose by 10.75% to Rs 3,30,792 crore, with CASA (Current Account Savings Account) deposits increasing by 15% to Rs 1,44,837 crore. This led to an improvement in the CASA Ratio by 161 basis points, reaching 43.78% as of June 30, 2025. Gross advances also grew by 14.05% to Rs 2,62,421 crore, and the Credit to Deposit (CD) Ratio increased to 79.33%.
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The bank demonstrated strong asset quality improvement, with Gross Non-Performing Assets (GNPA) ratio reducing by 92 basis points to 1.97% and Net NPA ratio improving by 19 basis points to 0.32% as of June 30, 2025. The slippage ratio also improved by 3 basis points to 0.10%. Total recoveries increased by 46.13% to Rs 851 crore. The Provision Coverage Ratio improved by 51 basis points to 97.47%, and the Capital Adequacy Ratio (CRAR) improved by 46 basis points to 18.28%.
Read Also : Ministry of Power Announces Key Leadership Vacancies at Damodar Valley CorporationIndian Overseas Bank has received several accolades, including being ranked first among Public Sector Banks (PSBs) for outstanding performance in Customer Service (CPGRAM) for June 2025. Shri M. Nagaraju, I.A.S., Secretary, DFS, Ministry of Finance, launched multiple customer-centric digital initiatives at IOB's Central Office on July 11, 2025, such as QR-based Real-Time Customer Feedback System and WhatsApp Banking. The bank was also recognized as a winner in the Special Initiative Citation category in the EASE 7.0 Reforms and as one of the top 3 banks under the Kalaignar Kaivinai Thittam (MSME) Scheme. Furthermore, IOB expanded its domestic branches by 95 to 3,345 as of June 30, 2025, with 58% of these branches located in rural and semi-urban areas. The number of Business Correspondent engagements significantly increased by 3,794 to 10,872.
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