IOB to raise Rs 4,000 crore this financial year: MD & CEO

New Delhi: Public sector Indian Overseas Bank has drawn up plans to raise Rs 4,000 crore during this financial year through various instruments, including Qualified Institutional Placement (QIP), a top official said on Friday.

With the proposed plan to fund raise, the Government of India's shareholding in the Chennai-headquartered bank is expected to come down to 90 percent from the current 94 percent, the bank's Managing Director and CEO Ajay Kumar Srivastava said.

"Last year, we raised about Rs 1,440 crore in March. This year we are looking for about Rs 4,000 crore to raise. For that we are talking to various authorities for their approval," he told reporters after declaring the financial performance of the bank.

Asked about the kind of instruments that would be used for the fund raise, he said, "It will be a mix. Most of it will be through QIP (Qualified Institutional Placements). With this, Government of India shareholding will come down to 90 percent from 94 percent."

To another query on when the fund raise was expected to occur, Srivastava said, "We expect it will happen by Q3 end or Q4."

Indian Overseas Bank reported a 76 percent jump in net profit to Rs 1,111 crore during the April-June 2025 quarter. The bank had earned a net profit of Rs 633 crore in the same quarter of the previous financial year.

Total income of the bank during the June quarter rose to Rs 8,866 crore from Rs 7,568 crore recorded in the same quarter of last financial year.

Commenting on the financial performance, the Managing Director said, "Today, we declared our Q1 results for 2025-26 and the net profit has increased more than 75 percent i.e.,, 75.57 year on year. In actual terms it is Rs 1,111 crore. This is the highest ever net profit of the bank."

He said the operating profit increased by 40.70 percent to Rs 2,358 crore year on-year basis.

Asked on the drivers for the increase in net profit, he said, the driver is interest income. "We have been doing quality lending at a healthy rate of interest. So that is one. The net interest income has increased. We have been able to control our expenses to a certain extent and the other income has increased for the bank." he said.

"The third most crucial part is less provisioning requirement and all these factors combined have given 75 percent increase in net profit", he said.

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