Indian Overseas Bank Q3 net surges 56% to ₹1,365 crore

Public sector lender Indian Overseas Bank reported December quarter net profit increased more than 56% to ₹1,365 crore compared with ₹874 crore in the year earlier on the back of improved performance and asset quality.

Retail, agri and MSME (RAM) credit increased 33% YoY and played a major part as total advance of the Chennai-headquartered bank rose 24.1% to ₹2.95 lakh crore during the third quarter.

Vehicle loan, a key part of retail credit, saw a pick up following the September reduction in Goods and Services Tax (GST), MD and CEO Ajay Kumar Srivastava said during a media interaction on Wednesday. On other aspects of the third quarter results, he said net interest income (NII) increased by 18.29% to ₹3,299 crore (₹2,789 crore). Gross NPA (non-performing asset) ratio at 1.54% was 101 bps lower YoY, while net NPA ratio at 0.24% was a reduction of 18 bps.

Total business of the bank rose ₹1.01 lakh crore to reach ₹6.44 lakh crore as on December 2025, registering 18.7% YoY growth. CASA deposits registered a growth of 7.8% YoY and stood at ₹1.43 lakh crore.

On fund raising plans, he said IOB planned to raise funds through a qualified institutional placement (QIP) by this fiscal. The bank’s board had sometime ago approved raising of up to ₹4,000 crore funds.