IOB posts 30% rise in net profit in Q4 FY25, crosses Rs 1,000 crore mark

CHENNAI: Public sector Indian Overseas Bank (IOB) on Friday reported 30% growth in net profit at Rs 1,051 crore in the quarter ended March 31, 2025 against Rs 808 crore in the corresponding quarter last year. It is the first time that the Chennai-headquartered bank crossed the Rs 1,000 crore mark in net profit during a quarter.

Its net interest income (NII) increased by 13% at Rs 3,123 crore in Q4 FY25, which was at Rs 2,763 crore during the year ago quarter. The operating profit increased to Rs 2,618 crore in Q4 FY25 from Rs 1,961 crore during the same quarter last year, registering 33.5% growth. The net interest margin (NIM) - domestic was flat at 3.77 % during the Jan-Mar quarter of FY25 against 3.73 % for Q4 FY24.

Gross non-performing assets (GNPA) ratio reduced by 96 bps to 2.14 % as on 31.03.2025 from 3.1% as on 31.03.2024. The net NPA ratio decreased to 0.37 % as on 31.03.2025 against 0.57 % as on 31.03.2024.

The CASA ratio stood at 43.65% for the quarter ended March 31, 2025. Its total recovery for the quarter ended 31.03.2025 stood at Rs 992 crore and for the entire year of FY25 at Rs 4,014 crore.

However, the bank recorded its highest slippage in the corporate segment at Rs 2,330 crore in Q4 FY25, which pertains to MTNL.

"The entire exposure has been 100% provided in advance. So, there is no provision impact. Despite this account getting added to NPA, our GNPA and NNPA has come down," IOB MD & CEO Ajay Kumar Srivastava told reporters here.

Noting that they are looking at an overall business growth of 13%-14% growth in the current fiscal of FY26, he said the bank would continue with a similar performance of Rs 1,000 crore net profit in the future quarters.



To a query on cost of deposits in the upcoming quarters, he said the repo rate was getting reduced and inflation was declining. "So, when the lending rate is coming down, then naturally that impact will be passed on to depositors also. Whatever deposit rates are being offered now to the depositors that will see some moderation going forward. Some adjustments will happen depending on the requirements of banks. But I think the cost of deposits going forward, it will not move up," Srivastava added.

IOB will be raising Rs 4,000 crore through qualified institutional placement (QIP) this financial year, which will bring down the Centre's holding with the bank to around 90% from the current 94.61%.



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