Indian Overseas Bank has reported 30% growth in net profit at Rs 1051.07 crore for the quarter ended March 2025 (Q4FY2025). The bank has posted healthy 13% growth in net interest income (NII), while the core fee income of the bank improved 13% in Q4FY2025. The Net Interest Margin (NIM) of the bank improved to 3.58% in Q4FY2025 compared to 3.53% in the corresponding quarter of previous year.
On business front, the bank as has posted 11% growth in business with strong 14% surge in loan book. The asset quality of the bank has improved in Q4FY2025. Bank has raised credit to deposit ratio to 80.2% at end March 2025 from 76.6% at end March 2024. CASA ratio of the bank has been stable at 43.6% at end March 2025 from 43.9% at end March 2024.

Asset quality improves: The bank has improved asset quality in Q4FY2025.

The fresh slippages of loans stood at Rs 2753 crore in Q4FY2025 compared with 286 crore in previous quarter and Rs 350 crore in the corresponding quarter last year.

The recoveries of NPAs stood at Rs 263 crore, upgradations at Rs 75 crore and the write-off of loans was at Rs 3043 crore in Q4FY2025.

Provision coverage ratio rose to 97.30% at end March 2025 compared to 97.07% a quarter ago and 96.85% a year ago.

The capital adequacy ratio of the bank stood at 19.7% with Tier I ratio at 17.1% at end March 2025.

The risk weighted assets of the bank has increased 17% YoY to Rs 169084 crore end March 2025,

Asset Quality Indicators: Indian Overseas Bank
	Mar-25	Dec-24	Sep-24	Jun-24	Mar-24	Variation
						QoQ	YoY
Gross NPA (Rs Crore)	5347.72	6070.51	6249.07	6648.71	6794.43	-12	-21
Net NPA (Rs Crore)	911.86	975.91	1059.25	1153.51	1216.86	-7	-25
% Gross NPA	2.14	2.55	2.72	2.89	3.10	-41	-96
% Net NPA	0.37	0.42	0.47	0.51	0.57	-5	-20
% PCR	97.30	97.07	97.06	96.96	96.85	23	45
% CRAR - Basel III	19.74	16.97	17.45	17.82	17.28	277	246
% CRAR - Tier I - Basel III	17.13	14.33	14.75	14.99	14.47	280	266
Variation in basis points for figures given in percentages and in % for figures in Rs crore

 

Business Highlights:

Double digit business growth: The business of the bank has increased 11% YoY to Rs 561958 crore end March 2025, driven by 14% surge in advances to Rs 250019 crore. Deposits rose 9% to Rs 311939 crore at end March 2025.

CASA deposits ratio steady: The CASA deposits of the bank increased 8% YoY to Rs 136161 crore at end March 2025. The CASA ratio declined to 43.6% at end March 2025 compared to 43.9% at end March 2024, while rose from 43.4% a quarter ago. The term deposits have increased 10% to Rs 175778 crore end March 2025.

Strong loan growth: Advances growth was driven by retail loans rising 29% YoY to Rs 62764 crore at end March 2025, while credit to agriculture increased 34% to Rs 74545 crore and MSME 7% to Rs 44310 crore at end March 2025. The corporate credit has declined 6% to Rs 51882 crore end March 2025. The overseas credit fell 10% to Rs 16518 crore end March 2025.

Investment book of the bank increased 10% YoY to Rs 111045 crore at end March 2025. The SLR book moved up 16% to Rs 80701 crore, while non SLR book declined 4% to Rs 26319 crore at end March 2025. The AFS book rose 6% to Rs 15787 crore, while HTM book increase 8% to Rs 88785 crore at end March 2025.

Margins improve: The bank has shown 29 bps YoY jump in cost of deposits to 5.17%, while yield on advances declined 14 bps YoY to 8.78% in Q4FY2025. NIM has improved 5 bps YoY, while jumped 25 bps qoq to 3.58% in Q4FY2025.

Branch expansion: The bank has added 5 branches and reduced 6 ATMs in Q4FY2025, taking overall tally to 3335 branches and 3497 ATM`s end March 2025.

Book value of the bank stood at Rs 14.9 per share at end March 2025, while the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 14.3 per share at end March 2025.

Quarterly Performance

NII rises as NIM improves: Bank has recorded 15% increase in the interest earned at Rs 7633.59 crore, while interest expenses increased 17% to Rs 4510.64 crore in Q4FY2025. NII improved 13% to Rs 3122.95 crore in the quarter ended March 2025.

Healthy growth in the core fee income: Bank has posted strong 13% growth in core fee income to Rs 465 crore, while the treasury income rose 5% to Rs 189 crore. However, the recoveries and other income declined 47% due to high base to Rs 477 crore.  leading to 36% dip in the overall non-interest income to Rs 1581.10 crore in the quarter ended March 2025.

Expenses ratio improves: The operating expenses of the bank dipped 36% to Rs 2086.13 crore, as other expenses moved up 25% to Rs 954.14 crore, while employee expenses dipped 55% to Rs 1131.99 crore in Q4FY2025. Cost to income ratio improved to 44.3% in Q4FY2025 compared with 62.6% in Q4FY2024, helping the Operating Profit to increase 33% to Rs 2617.92 crore.

Provisions and contingencies rise: The bank has showed 39% jump in provisions to Rs 1063.46 crore. The loan loss provisions declined 51% to Rs 200 crore, while provisions surged 141% to Rs 864 crore.

Effective tax rate was steady at 32.4% in Q4FY2025 from 32.3% in Q4FY2024. Net Profit rose by 30% YoY to Rs 1051.07 crore during quarter ended March 2025.

Financial Performance FY2025:

Bank has posted 26% increase in net profit to Rs 3334.71 crore in the year ended March 2025 (FY2025). The net interest income increased 11% to Rs 10890.21 crore, while non-interest income declined 2% to Rs 5545.07 crore. Net total income rose 6% to Rs 16435.28 crore in FY2025. The operating expenses declined 11% to Rs 7747.27 crore, while provision and contingencies galloped 25% to Rs 4176.29 crore. Profit before tax increased 32% to Rs 4511.72 crore in FY2025. The cost-to-income ratio improved to 47.1% in FY2025 compared to 56.3% in FY2024. An effective tax rate rose to 26.1% in FY2025 compared to 22.2% in FY2024. The net profit has increased 26% to Rs 3334.71 crore in FY2025.

 

Indian Overseas Bank: Results
Particulars	2503 (3)	2403 (3)	Var %	2503 (12)	2403 (12)	Var %
Interest Earned	7633.59	6628.89	15	28131.01	24049.73	17
Interest Expended	4510.64	3865.81	17	17240.80	14220.32	21
Net Interest Income	3122.95	2763.08	13	10890.21	9829.41	11
Other Income	1581.10	2477.37	-36	5545.07	5656.26	-2
Net Total Income	4704.05	5240.45	-10	16435.28	15485.67	6
Operating Expenses	2086.13	3279.34	-36	7747.27	8721.91	-11
Operating Profits	2617.92	1961.11	33	8688.01	6763.76	28
Provisions & Contingencies	1063.46	767.66	39	4176.29	3351.23	25
Profit Before Tax	1554.46	1193.45	30	4511.72	3412.53	32
EO	0.00	0.00	-	0.00	0.00	-
PBT after EO	1554.46	1193.45	30	4511.72	3412.53	32
Provision for tax	503.39	385.35	31	1177.01	756.92	55
PAT	1051.07	808.10	30	3334.71	2655.61	26
EPS*(Rs)	2.18	1.68		1.73	1.38
Adj BV (Rs)	14.32	12.46		14.32	12.46
* Annualized on current equity of Rs 19256.59 crore. Face Value: Rs 10, Figures in Rs crore
Source: Capitaline Corporate Database

 

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