Indian Overseas Bank Q1FY26 Net Profit Rises 24.1% YoY to ₹621 Crore
By Shishta Dutta | Published at: Jul 18, 2025 03:48 PM IST
Chennai, July 18, 2025 – Indian Overseas Bank (NSE: IOB, BSE: 532388) reported a 24.1% YoY rise in standalone net profit to ₹621.24 crore for the quarter ended June 30, 2025 (Q1FY26), compared to ₹500.54 crore in Q1FY25.
Key Financial Highlights (₹ in crore)
| Particulars | Q1FY26 (Standalone) | Q4FY25 (Standalone) | Q1FY25 (Standalone) |
|---|---|---|---|
| Net Profit | 621.24 | 723.52 | 500.54 |
| Total Income | 7,284.47 | 7,385.86 | 6,481.27 |
| Operating Profit | 1,180.78 | 1,308.52 | 1,008.74 |
| Net Interest Income (NII) | 2,253.11 | 2,309.94 | 2,020.32 |
| Provisions (excluding tax) | 494.61 | 428.79 | 414.67 |
| Gross NPA (%) | 4.41 | 4.49 | 6.44 |
| Net NPA (%) | 0.55 | 0.56 | 1.44 |
YoY Growth:
- Net Profit up 24.1%
- Total Income up 12.4%
- NII up 11.5%
- Gross NPA improved 203 bps YoY
- Net NPA improved 89 bps YoY
Consolidated Performance
On a consolidated basis, IOB reported a net profit of ₹748.65 crore, up from ₹545.61 crore in Q1FY25, marking a YoY growth of 37.2%. The consolidated total income stood at ₹7,483.90 crore.
Segment-Wise Performance
| Segment | Q1FY26 Revenue (₹ Cr) | Q1FY25 Revenue (₹ Cr) |
|---|---|---|
| Treasury | 909.68 | 887.77 |
| Corporate/Wholesale Bank | 2,281.64 | 2,029.88 |
| Retail Banking | 3,394.53 | 2,946.58 |
| Other Banking Operations | 698.62 | 617.57 |
Retail banking remains the dominant segment, contributing over 46% to the total segment revenue.
Asset Quality & Provisions
- Provision Coverage Ratio improved to 97.47%
- IOB holds ₹13,88,699.56 lakh in provisions for IBC-admitted accounts (99.43% of outstanding)
- Total COVID-related provisions stood at ₹1,692.74 crore as of June 30, 2025
Balance Sheet Snapshot
| Key Metric | Q1FY26 (₹ Cr) | FY25 (₹ Cr) |
|---|---|---|
| Total Assets | 4,11,141.39 | 3,88,517.53 |
| Deposits | 3,50,277.86 | 3,11,173.82 |
| Advances | 2,37,143.59 | 2,13,974.92 |
| Investments | 1,18,407.72 | 1,01,826.84 |
| Capital | 19,225.59 | 19,225.59 |
Regulatory and Strategic Updates
- The board approved the Q1FY26 financials at a meeting held on July 18, 2025.
- No deviation or variation was reported in the utilisation of funds raised from listed debt instruments.
- As per disclosure under Reg 54 of SEBI LODR, the bank’s listed bonds are unsecured and total ₹2,165 crore across three issuances.
- The bank holds 35% in Odisha Grameen Bank post amalgamation and has accounted for it as an associate.
- Investment in the Malaysia-based joint venture India International Bank is being wound down post regulatory approval from BNM.
Auditor Review
The financials were subjected to a limited review by joint statutory central auditors and received an unmodified opinion, with specific emphasis on:
- The bank’s deferred tax asset of ₹3,430.78 crore
- Non-provision of disputed tax liabilities amounting to ₹4,05,858.67 lakh (direct) and ₹2,77,622.04 lakh (indirect)
Management Commentary
Ajay Kumar Srivastava, Managing Director & CEO, stated: “We’ve delivered another quarter of strong operating performance with prudent asset quality management. Our focus on retail and MSME growth, along with disciplined credit underwriting, continues to support profitability.”
Indian Overseas Bank Stock Performance
As of 2:50 PM, Indian Overseas Bank shares are trading at ₹39.97, representing a 0.35% gain or an increase of ₹0.14. Indian Overseas Bank shares have declined by 40% over the last year, 22% year-to-date, and increased by 6.16% in the previous month.
Indian Overseas Bank is currently trading with a market capitalisation of ₹76.97K crore. The stock opened at ₹39.95 and moved within a range of ₹39.24 to ₹40.64 during the trading session. The bank’s stock has seen a 52-week high of ₹72.60 and a 52-week low of ₹33.50, indicating a broad price movement over the past year.
About Indian Overseas Bank
Indian Overseas Bank is a Chennai-headquartered public sector bank listed on NSE and BSE. Incorporated in 1937, it has a pan-India presence with a strong rural and retail banking footprint. The bank is part of the Nifty PSU Bank index and has been listed on the exchange since December 2000.
REF: https://nsearchives.nseindia.com/corporate/IOB_18072025122612_FINAL.pdf
Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations
