IOB Q4 Results: Net Profit Crosses Rs 1000 Cr For The 1st Time; Asset Profile Sharpens

The financial results for the quarter and year ending March 31, 2025, have been released by Indian Overseas Bank (IOB) on Friday. For the first time, the bank's net profit surpassed Rs 1000 Cr. It grew by Rs 243 Crore, or 30.07% YoY, to Rs 1,051 Crore for the Q4FY25 from Rs 808 Crore for the Q4FY24. According to the bank, its Net Interest Income (NII) climbed from Rs 2,763 Crore for Q4FY24 to Rs 3,123 Crore for Q4FY25, a 13.03% rise.

The bank's operating profit grew by Rs 657 crore at a 33.50% YoY rate, from Rs 1,961 crore for the quarter ending in March 2024 to Rs 2,618 crore for the quarter ending in March 2025. For Q4FY25, the bank reported that its Cost to Income Ratio improved to 44.35% from 62.58% in the year-ago quarter, its Return on Assets (ROA) increased to 1.12% from 0.94%, and its Return on Equity (ROE) improved to 19.53% from 18.50%.
In Q4FY25, the bank's domestic net interest margin (NIM) increased to 3.77 percent from 3.73 percent in Q4FY24.

According to Indian Overseas Bank, its net profit for the year ending March 31, 2025, was Rs 3,335 crore, up 25.56 percent from Rs 2,656 crore for the year ending March 31, 2024. In FY25, Net Interest Income (NII) was Rs 10,890 crore, up 10.79% YoY from FY24's Rs 9,829 crore. For FY25, the bank's operating profit increased by 28.44% to Rs 8,688 crore from Rs 6,764 crore in the previous fiscal year.

As of March 31, 2025, the bank's total business was worth Rs 5,61,958 crores, up from Rs 5,04,923 crores, representing a growth of Rs 57,035 crores at an 11.30% YoY pace. IOB reported a 9.11% YoY rise in total deposits, which reached at Rs 3,11,938 crores as of March 31, 2025, increasing Rs 26,034 crores from Rs 2,85,905 crores at the end of March 31, 2024.

The bank's gross advances amounted to Rs 2,50,019 crores on March 31, 2025, up from Rs 2,19,018 crores on the same period in 2024, representing a YoY rise of Rs 31,001 crores. According to IOB, its CASA deposits grew from Rs 1,25,508 Crore to Rs 1,36,161 Crore, representing an 8.49% Yo-Y growth basis. For the quarter ending March 31, 2025, the CASA Ratio was 43.65%, with a Credit to Deposit (CD) Ratio of 80.15%.

The Gross Non-Performing Assets (GNPA) ratio of Indian Overseas Bank surged by 96 basis points from 3.10 percent on March 31, 2024, to 2.14 percent on March 31, 2025 whereas Net NPA ratio stood at 0.37 % as of 31.03.2025 against 0.57 % as of 31.03.2024, representing a sharp rise in the asset profile. The bank's provision coverage ratio increased from 96.85% on March 31, 2024, to 97.30% on March 31, 2025.

As of March 31, 2025, Indian Overseas Bank has a network of 3335 branches, 3497 ATMs, 10,135 BC Points, and 16,967 touch points throughout India. The bank has 1940 (58%) of its branches in rural and semi-urban regions. The bank has launched 101 fresh branches nationwide in FY25.

Additionally, the Board of Directors declared that it would raise equity capital from the public in one or more tranches during FY 2025-2026 up to a maximum of Rs. 4000 crore through follow-on public offerings, rights issues, qualified institutional placements, ESPS, preferential issues, or any combination of these methods. Additionally, they announced that they would raise Tier II capital through the issuance of BASEL III Compliant Tier II Bonds in one or more tranches during FY 2025-2026, either through a private placement or a public issue both domestically and internationally, up to a maximum of Rs. 1000 crore, depending on the requirements, with or without the green shoe option.