Indian Overseas Bank Q4 FY25 RESULT
Chennai, May 4, 2025 — Indian Overseas Bank (IOB) has reported a net profit exceeding ₹1,000 crore for the fourth quarter of FY25, marking a significant milestone in the bank's turnaround journey. The public sector lender’s performance signals a sustained recovery and improved operational efficiency, reflecting broader strength in India’s banking sector.
According to the bank's regulatory filing, IOB recorded a net profit of ₹1,023 crore in Q4, a substantial increase compared to ₹653 crore reported in the same quarter last year. The surge in profitability was driven by higher interest income, improved asset quality, and disciplined cost control.
For the full fiscal year, IOB’s net profit stood at ₹3,678 crore, registering a year-on-year growth of nearly 25%.
Key Drivers
The bank reported a strong uptick in net interest income (NII), which rose 18% to ₹2,230 crore during the quarter. The net interest margin (NIM) also improved, supported by better yield on advances and a more favorable deposit mix.
Non-performing assets (NPAs) continued their downward trend. Gross NPA ratio fell to 4.25% from 6.1% a year ago, while net NPAs declined to 1.12%, underscoring improved credit risk management.
Market and Management Response
“We are proud to have crossed the ₹1,000 crore mark in quarterly profits for the first time,” said Ajay Kumar Srivastava, Managing Director and CEO of IOB. “This is a testament to our sustained efforts in strengthening the balance sheet, expanding our digital offerings, and focusing on profitable growth.”
The bank also announced plans to increase its retail and MSME lending while continuing to digitize core operations.
Market participants are likely to view the result as a strong signal of IOB’s improved fundamentals. Analysts expect a positive stock reaction when markets open on Monday, especially amid growing investor interest in PSU banks showing consistent profitability.
Outlook
With an improving economic environment and credit demand picking up, IOB is well-positioned to maintain its growth trajectory. The bank has outlined a strategy focusing on loan book expansion, digital transformation, and strengthening internal governance.
As Indian public sector banks continue their turnaround stories, IOB’s milestone result could further boost investor confidence in the sector.