Indian Overseas Bank Q1 result: Net profit soars 76% YoY to ₹1,111 crore; NII up 13%

Indian Overseas Bank (IOB), on Friday, July 18, reported a 75.56% year-on-year (YoY) surge in its standalone net profit to ₹1,111 crore in the June quarter of the 2025-26 financial year (Q1FY26). In the corresponding period a year ago, its profit stood at ₹632.8 crore.

The bank's net interest income (NII) increased by 13% YoY to ₹2,747 crore in the quarter under review, compared to ₹2,441 crore in the first quarter of FY25. Its net interest income (NIM) surged stood at ₹2,746 crore in the June FY26 quarter, jumping 12.4% YoY from ₹305 crore in the Q1FY25.

The PSU's asset quality improved, with gross non-performing assets (GNPA) falling to 1.97% in Q1FY26, in contrast to 2.14% in the last quarter and 2.89% in the June FY25 quarter. Similarly, its net NPA (NNPA) contracted to 0.32%, as against 0.37% in Q4FY25 and 0.51% in the year-ago period.

During the quarter, IOB’s debt-to-equity ratio declined to 1.77 from 1.84 in Q4FY25 and 1.96 in the same period last year.

Sequentially, the bank's provisions declined 20.6% quarter-on-quarter (QoQ) to ₹844 crore, compared to ₹1,063 crore in the previous quarter.

Its total deposits stood at ₹3.31 lakh crore as on June 30, 2025, increasing by 10.75% YoY from ₹2.99 lakh crore in the year-ago period.

The bank’s return on assets (ROA) increased by 44 bps to 1.14 % during the quarter, as compared to 0.70 % in Q1FY25.

IOB stock performance

Shares of Indian Overseas Bank were trading 0.43% higher at ₹40 apiece, as of 1:47 pm, on the National Stock Exchange (NSE).

The stock has gained 2.8% so far this week and 2.57% since the beginning of July. It lost 0.03% in the first quarter of FY26 and 22.7% on a year-to-date basis.

While the scrip reached a 52-week low of ₹33.50 on April 7, 2025, it hit a year’s high of ₹72.60 per equity share on July 29, 2024.

Indian Overseas Bank has a total market capitalisation of ₹77,026.36 crore, as of July 18, 2025, as per data on the NSE.