Indian Overseas Bank Q4 net profit jumps 30%, NII grows 13%; bank shares FY26 fundraising plans

The bank’s net interest income (NII) during the quarter under review grew 13% to ₹3,123 crore as against ₹2,763 crore in Q4 FY24.

The PSU bank's operating profit before provisions and contingencies for Q4 FY25 stood at ₹2,617.92 crore, advancing 33.5% from ₹1,961.11 crore in the corresponding quarter of the previous fiscal year.

For Q4FY25, Indian Overseas Bank’s gross NPA was seen at 2.14% as against 2.55% quarter-on-quarter (QoQ). The net NPA was recorded at 0.37% for Q4 FY25 in contrast to 0.42% QoQ.

Following this, shares of the bank were trading at ₹38.05 apiece on the National Stock Exchange, rising 1.39%.

Indian Overseas Bank has also approved its fundraising plans for the financial year 2025-26 through a combination of the issuance of Basel III-compliant Tier II bonds and equity capital.

“Approved to raise equity capital to a maximum extent of ₹4000 crores, including share premium (if any), by way of follow-on public offer/rights issue/qualified institutional placement/ESPS/preferential issue or any other mode or combination thereof, in one or more tranches during FY 2025-26,” the bank said in a statement to the exchanges.

The fund raising is subject to approval from shareholders at the AGM/EGM and other required regulatory approvals.

It has also given a green light to raise Tier II capital by issuing Basel III-compliant Tier II bonds up to a maximum extent of ₹1,000 crore depending upon the requirement, “with or without a green shoe option, in one or more tranches during FY 2025-26 by private placement or by way of public issue either domestically or overseas.”

During the session, shares of Indian Overseas Bank had touched a high of ₹38.40 apiece and a low of ₹37.15.

Its market capitalisation stands at ₹73,406.12 crore.