IOB Q4FY25 profit jumps 30% to ₹1,051 cr as bad loans ease, interest income rises
Mumbai: State-owned Indian Overseas Bank (IOB) on Friday posted a 30 percent year-on-year rise in its net profit for the March quarter, coming in at ₹1,051 crore, aided by a decline in non-performing assets and higher interest income.
The bank had reported a net profit of ₹808 crore in the same period last year.
During the fourth quarter, total income increased to ₹9,215 crore from ₹9,106 crore in the year-ago period, the Chennai-headquartered lender said in a regulatory filing.
Interest income rose sharply to ₹7,634 crore, compared to ₹6,629 crore in the corresponding quarter of the previous year.
Asset quality improves significantly
Gross Non-Performing Assets (NPAs) as a percentage of gross advances eased to 2.14 percent by the end of March 2025, compared to 3.10 percent a year earlier.
Net NPAs declined to 0.37 percent from 0.57 percent at the end of FY24.
With the improvement in asset quality, provisions fell to ₹200 crore during the quarter, down from ₹409 crore in the same period last year.
The bank’s capital adequacy ratio also improved, rising to 19.74 percent from 17.28 percent at the end of FY24.
FY25 profit up 26%, capital raising plan approved
For the full financial year 2024–25, IOB reported a 26 percent growth in net profit at ₹3,335 crore, compared to ₹2,656 crore in the preceding year.
Total income during the year rose to ₹33,676 crore from ₹29,706 crore in FY24.
The bank’s board has approved a capital raising plan of up to ₹5,000 crore via a mix of equity and bonds.
Of this, up to ₹4,000 crore is proposed to be mobilised through a follow-on public offer, rights issue, qualified institutional placement, or other routes in one or more tranches during FY26.
This will be subject to shareholder approval through an AGM or EGM, as well as necessary regulatory clearances, the bank said.
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