IOB Q1 Results: Net Profit Soars 75.57% To All-Time High, NII Up 12.5%; Asset Quality Strengthens

The financial figures for the quarter that ended on June 30, 2025, have been released by Indian Overseas Bank (IOB). The bank's net profit grew 75.57% YoY to reach a record high of Rs 1,111 crores, up from Rs 6,33 crores on June 30, 2024.

According to IOB, its operating profit grew 40.70% YoY to Rs 2,358 crores in Q1FY26 from Rs 1,676 crores in Q1FY25. The bank reports that its Net Interest Income (NII) grew by 12.50 per cent on a YoY basis to Rs 2,746 crores during the quarter under review, up from Rs 2,441 crores reported in the same quarter the previous year.

According to IOB, its Cost to Income Ratio improved by 754 basis points to 44.22 percent as of June 30, 2025, compared to 51.76 percent in the year-ago quarter; Return on Assets (ROA) increased by 44 basis points to 1.14 percent as of June 30, 2025, compared to 0.70 percent as of June 30, 2024; Return on Equity (ROE) increased by 490 basis points to 19.00 percent as of June 30, 2025, as compared to 14.10 percent as of June 30, 2024; and NIM stood at 3.17 percent as of June 30, 2025.

IOB's total business grew by Rs 64,440 crores (12.19%) on a year-on-year basis, from Rs 5,28,773 crores to Rs 5,93,213 crores as of June 30, 2025. The same increased by 5.56 per cent on a sequential basis from quarter to quarter. According to Indian Overseas Bank, its total deposits grew by 10.75% YoY to Rs 3,30,792 crores in the quarter that ended in June 2025 from Rs 2,98,681 crores on June 30, 2024. The same increased by 6.04 per cent on a sequential basis or QoQ.

According to the bank, its gross advances climbed by 14.05 percent year on year to Rs 2,62,421 crores on June 30, 2025, compared to Rs 2,30,092 crores on June 30, 2024. The CASA Ratio rose by 161 basis points to 43.78 percent as of June 30, 2025, while CASA deposits grew by 15.00 percent YoY to Rs 1,44,837 crore in Q1FY26 from Rs 1,25,947 crore in Q1FY25.

IOB's asset quality has improved, as evidenced by a 92-bps decrease in the Gross Non-Performing Assets (GNPA) ratio from 2.89 percent on June 30, 2024, to 1.97% on June 30, 2025, and a 19-bps decrease in the net NPA ratio from 0.51% on June 30, 2024, to 0.32% on June 30, 2025. According to IOB, the provision coverage ratio increased 51 basis points to 97.47% on June 30, 2025, from 96.96% on June 30, 2024, while the slippage ratio climbed 3 basis points to 0.10 percent on June 30, 2025, from 0.13 percent on June 30, 2024.

During the quarter ending in June 2025, the bank's total number of customer touch points bumped to 17,678; its number of domestic branches climbed by 95 branches to 3,345 from 3,250 on June 30th, 2024; its number of business correspondent engagements improved by 3,794 to 10,872 from 7,078 branches; and, of the 3345 domestic branches, 1948 (58%) were located in rural and semi-urban areas.