New Delhi: Indian Overseas Bank (IOB) has reported its highest-ever quarterly net profit of Rs 1,226 crore for the quarter ended September 30, 2025, marking a robust year-on-year growth of 57.79 percent. The bank’s strong performance was underpinned by higher interest income, improved margins, and better asset quality.
IOB’s operating profit for the quarter rose by 12.78 percent to Rs 2,400 crore, while Net Interest Income (NII) grew by 20.53 percent to Rs 3,059 crore. The bank’s Net Interest Margin (NIM) improved to 3.35 percent (domestic) and 3.21 percent (global), reflecting improved yield on advances and effective cost management.
The bank also achieved significant improvement in efficiency metrics, Cost-to-Income Ratio reduced by 321 basis points to 45.76 percent, while Return on Assets (ROA) rose to 1.20 percent and Return on Equity (RoE) strengthened to 19.95 percent.
For the half year ended September 2025, IOB’s net profit surged by 65.74 percent to Rs 2,337 crore, with operating profit increasing by 25.08 percent to Rs 4,758 crore.
Business Growth Remains Strong
IOB’s total business grew by 14.10 percent year-on-year to reach Rs 6,17,034 crore as of September 30, 2025. Total deposits stood at Rs 3,39,066 crore, up 9.15 percent, while gross advances rose by 20.78 percent to Rs 2,77,968 crore. The Credit-Deposit (CD) Ratio improved to 81.98 percent, and the CASA ratio remained healthy at 40.52 percent.
Asset Quality at Its Best
The bank continued to strengthen its asset quality, with Gross Non-Performing Assets (GNPA) ratio falling to 1.83 percent, down 89 basis points year-on-year, and Net NPA declining to 0.28 percent. The Provision Coverage Ratio (PCR) improved to a robust 97.48 percent, while the Slippage Ratio was maintained at a low 0.11 percent, reflecting strong credit discipline and recovery efforts.
Capital and Recovery Performance
IOB’s Capital Adequacy Ratio (CRAR) under Basel III norms improved to 17.94 percent, with CET-1 ratio at 15.53 percent. Total recoveries during the quarter stood at Rs 874 crore, including Rs 461 crore from written-off accounts.
The bank’s consistent performance and governance standards have earned it multiple accolades. IOB bagged the Rajbhasha Kirti Award for the third consecutive year for excellence in promoting the Official Language. It also topped the Grievance Redressal Index (GRAI) issued by the Department of Financial Services for the third straight month (June–August 2025). Additionally, IOB won the SKOCH Platinum Award in the BFSI category for its in-house “IOB SMART” app and risk management initiatives.
Strengthening its retail and rural footprint, IOB expanded its domestic branch network to 3,373 branches, with 58 percent located in rural and semi-urban areas. The bank’s ATM/CR network grew to 3,567, while the number of Business Correspondents increased sharply to 11,467, taking the total customer touchpoints across India to 18,407.
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