Indian Overseas Bank Q1 Profit Soars 76% YoY; Asset Quality Improves Further

Market Performance

Following this announcement, shares of Indian Overseas Bank saw a positive response.

• The stock gained up to 2% intraday, recovering from earlier losses.
• Post-results, IOB shares traded 0.8% higher at ₹40.17.
• Reflecting this momentum, the stock has posted a 7% rise in the past month, signaling improved investor sentiment.

Main News

Turning to financials, Indian Overseas Bank posted a strong performance for the quarter ended June 2025.

• Net profit increased 76% year-on-year to ₹1,111 crore, compared to ₹633 crore in the same period last year.
• The rise was primarily driven by higher non-interest income, alongside improved asset quality and reduced credit costs.

This performance highlights the bank’s operational strength during a period of economic transition.

Company Details

Indian Overseas Bank is a prominent public sector bank steadily expanding its footprint in India’s financial sector.

• During Q1 FY25, the bank further recorded a healthy increase in both core and non-core income.
• The improved performance also reflected the bank's strategic focus on strengthening its balance sheet and maintaining asset quality.

Revenue

• Net Interest Income (NII):
  ₹2,747 crore in Q1 FY25
  Compared to ₹2,441 crore in Q1 FY24
  YoY Growth: 13%

Other Income

• Other Income:
  ₹1,480 crore in Q1 FY25
  Compared to ₹1,032 crore in Q1 FY24
  YoY Growth: ~43%
  This uptick in other income, in particular, significantly boosted the quarter's bottom-line growth.

Asset Quality

• Gross NPA:
  Declined to 1.97% in June 2025
  From 2.14% in March 2025
• Net NPA:
  Reduced to 0.32%
  From 0.37% in the previous quarter

Together, these results demonstrate the bank’s continued efforts to manage stressed assets efficiently.

Provisions

• Total Provisions:
  ₹844 crore in Q1 FY25
  Down from ₹1,063 crore in Q4 FY24

As a result, lower provisioning costs added momentum to the quarterly profit growth.

Summary of the Article

In summary, the Indian Overseas Bank Q1 results point to a robust financial position, driven by a significant rise in net profit, higher other income, and improved asset quality.

Key highlights include:

• 76% YoY rise in net profit to ₹1,111 crore
• 13% growth in Net Interest Income
• Gross NPA improved to 1.97%, while Net NPA stood at 0.32%
• Provisions dropped to ₹844 crore, aiding overall profitability

Building on strong results and prudent risk management, IOB is poised to maintain its upward trajectory and reinforce its position as a leading public sector bank.