Indian Overseas Bank (IOB) Q4 24/25 earnings summary

Executive summary

• Achieved a business mix of INR 561,000 crores, with net profit up 25.56% year-on-year to INR 3,335 crores and operating profit up 28.44%.

• Focused on digital transformation, customer centricity, and ESG initiatives, including green finance and carbon accounting partnerships.

• Board approved raising up to ₹4,000 crore in equity and ₹1,000 crore in Tier II capital for FY 2025-26.

• Recognized with multiple awards for technology, compliance, and financial inclusion.

Financial highlights

• Net profit rose to ₹3,335 crore, up 25.56% year-on-year; operating profit reached ₹8,688 crore, up 28.44%.

• Total deposits grew 9.11% year-on-year to INR 311,939 crores; advances grew 14.15% to INR 250,019 crores.

• Net interest income for Q4 increased 13.03% year-on-year to INR 3,123 crores; total income rose 13.36% to INR 33,676 crores.

• Gross NPA reduced to 2.14% (from 3.10%); net NPA at 0.37%.

• Cost-to-income ratio reduced to 47.14% for the year and 44.35% for Q4.

Outlook and guidance

• Credit growth target for FY 2026 is 14%-15%; deposit growth targeted at 12%-13%.

• Plan to open over 100 new branches in the coming year.

• Cost-to-income ratio expected to be maintained around 44%, with a goal to reduce to 42%.

• ROA to be maintained above 1%, with further improvement targeted.

• Continued focus on digital innovation, operational efficiency, and expanding green finance.