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

Executive summary

• Achieved a business mix of INR 561,000 crores, with 11.3% year-on-year growth and net profit up 25.56% to INR 3,335 crores; operating profit rose 28.44% to INR 8,688 crores.

• Audited standalone and consolidated results for FY25 showed strong growth in income and profitability; Q4 net profit reached INR 1,051 crores.

• Focus on digital transformation, customer centricity, and ESG initiatives, with multiple awards for technology and compliance.

• Maintained strong asset quality despite a large one-off NPA from MTNL, with 100% provision made.

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

Financial highlights

• Advances grew 14.15% year-on-year to INR 250,019 crores; deposits increased 9.11% to INR 311,939 crores; CASA ratio stable above 43%.

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

• Gross NPA at 2.14%, net NPA at 0.37%, and provision coverage ratio at 97.3%.

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

• Return on Assets reached 1.12%; Return on Equity at 16.28%.

Outlook and guidance

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

• Cost-to-income ratio expected to improve to 42%-44% by year-end; NIM guidance maintained at 3.50% globally.

• Recovery target for FY 2026 is INR 4,500 crores, with 40%-45% from technical write-offs.

• Board approved capital raising to support future growth and regulatory requirements.

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