Indian Overseas Bank (IOB) announced a record net profit for the quarter ending September 30, 2025, at ₹1,226 crore. The figure was higher by 57.79% year-over-year (YoY).
The bank’s operating profit increased by 12.78% to ₹2,400 crore, driven by a 20.53% rise in Net Interest Income (NII) to ₹3,059 crore. Net Interest Margin (NIM) for domestic operations improved to 3.35% and global operations to 3.21% indicating a healthy spread between interest income and expenditure.
IOB’s cost efficiency measures resulted in a reduction of the Cost to Income Ratio by 321 basis points to 45.76%. The Return on Assets (ROA) increased by 38 basis points to 1.20%, and the Return on Equity (ROE) rose by 305 basis points to 19.95%, showcasing improved profitability and shareholder value.
Business Growth and Deposit Expansion
Total business grew by 14.10% YoY to ₹6,17,034 crore, with total deposits rising by 9.15% to ₹3,39,066 crore and gross advances increasing by 20.78% to ₹2,77,968 crore. The Credit to Deposit (CD) Ratio improved to 81.98%, and CASA deposits grew by 4.19% to ₹1,37,387 crore, maintaining a CASA Ratio of 40.52%.
Asset Quality Improvements
The Gross Non-Performing Assets (GNPA) ratio reduced by 89 basis points to 1.83%, and the Net NPA ratio decreased by 19 basis points to 0.28%. The Provision Coverage Ratio increased by 42 basis points to 97.48%.
Capital Adequacy and Risk Management
The Basel III Capital Adequacy Ratio (CRAR) improved by 49 basis points to 17.94%, with a Common Equity Tier 1 (CET1) ratio of 15.53% and a Tier-II ratio of 2.41%. This ensures a strong capital buffer to support future growth and absorb potential losses.
The bank expanded its domestic branches by 104 to 3,373 and increased its ATMs/CRs by 66 to 3,567. The network of Business Correspondents grew by 3,444 to 11,467, enhancing its reach in rural and semi-urban areas.
Disclaimer: This article was generated using AI tools and has undergone editorial review for clarity and coherence.
