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Informist, Thursday, Oct. 16, 2025

By Cassandra Carvalho

MUMBAI – Indian Overseas Bank reported a nearly 58% year-on-year jump in its standalone profit for the quarter ended September on the back of an over-40% on year drop in provisions. A rise in its interest earned also aided the healthy growth in the state-owned lender's net profit. 

Indian Overseas Bank's net profit came in at INR 12.26 billion for the September quarter coampred with INR 7.77 billion in the corresponding quarter of last year. Sequentially, its profit after tax grew 10% from INR 11.11 billion the previous quarter. The bank's provisions in Jul-Sept were INR 6.72 billion, down from INR 11.46 billion a year ago. Provisions and contingencies were down 20% on quarter. However, provisions for non-performing assets in the reporting quarter rose 72% on year to INR 1.21 billion. Sequentially, the figure fell 32%.

The bank's interest earned for the quarter rose around 15% on year to INR 78.49 billion and rose 6% sequentially. This aided the bank's total income, which was up nearly 9% at INR 92.14 billion from INR 84.84 billion a year ago. However, the bank's other income fell 16% on year to INR 13.65 billion. Sequentially, other income fell nearly 8%.

The bank's gross non-performing assets ratio was 1.83% as on Sept. 30, down 14 basis points from 1.97% as on Jun. 30. The net non-performing assets ratio fell 4 bps on quarter to 0.28%. The net non-performing assets fell 27% on year to INR 7.76 billion and the gross non-performing assets fell 19% on year to INR 50.78 billion. As on Sept. 30, the bank's provision coverage ratio was 97.48%, a tad up from 97.47% as on Jun. 30, and up from 97.06% as on Sept. 30, 2024. 

The bank's net interest income was INR 30.59 billion for the quarter ended September, up 21% on year and 11% on quarter. The bank reported a domestic net interest margin of 3.35%, up 14 bps on year and 18 bps on quarter.

The current account savings account deposits increased 4% on year to INR 1.37 trillion as on Sept. 30 but fell 5% on quarter. Total business of the bank grew 14% on year to INR 6.17 trillion as on Sept. 30, up 4% on quarter. Total deposits grew 9% on year to INR 3.39 trillion in the reporting quarter, but rose nearly 3% on quarter. Gross advances stood at INR 2.78 trillion as on Sept. 30, up 21% on year and 6% on quarter. 

The lender's credit cost was 0.18% as on Sept. 30, up 6 bps on year but down 11 bps on quarter. In a similar trend, the lender's cost-to-income ratio was 45.76% as on Sept. 30, falling 321 bps on year but up 154 bps from a quarter ago. 

As on Sept. 30, the bank's Basel III capital adequacy ratio was 17.94%, down from 18.28% as on Jun. 30. The credit-deposit ratio of the bank was 81.98% as on Sept. 30, up 789 bps on year, and 265 bps from a quarter ago. 

Total recoveries for the Jul-Sept quarter rose to INR 8.74 billion from INR 8.51 billion the previous quarter. Recoveries from write-offs in Jul-Sept were INR 4.61 billion. 

The bank added 104 domestic branches since Sept. 30, 2024, taking its total to 3,373. The bank has a carried balance of net deferred tax assets worth INR 29.64 billion as of Sept. 30. It has approximately reversed INR 9.00 billion for the half-year ended Sept. 30, it said. As of 1510 IST, shares of the bank traded at INR 39.89, down 1%, on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Vandana Hingorani

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