IOB Q1 net profit surges 75.57% on higher income
'The growth in net profit was driven by various factors including growth in net interest income, other income,' IOB's Managing Director and CEO Ajay Kumar Srivastava told reporters.
The bank's net interest income grew 12.50% to ₹2,746 crore, while other income increased 43.36% to ₹1,481 crore in the first quarter of 2025-2026.
Impacted by the repo rate cut by the Reserve Bank of India (RBI), the bank's net interest margin (NIM) declined 2 basis points to 3.04% in the three months ended June 2025 from 3.06% in the comparable period last year.
NIMs will normalise by the third or fourth quarter, Mr. Srivastava said.
IOB's total deposits grew by 10.75% to ₹3,30,792 crore, while gross advances increased by 14.05% to ₹2,62,421 crore.
The bank was able to maintain its Current Accounts and Savings Accounts (CASA) at 43.78% of total deposits, Mr. Srivastava said.
IOB's retail, agri and MSME loan book grew 24.69% to ₹1,92,597 crore, accounting for 78.92% of its total advances.
Mr. Srivastava said the credit demand from corporates have been subdued and the trend is expected to continue.
The bank's net NPA stood at 0.32%, while gross NPA stood at 1.97% as on June 30, 2025.
He also said the bank would raise ₹4,000 crore in the third or fourth quarter through various means, including Qualified Institutional Placement. This would reduce the Government of India's stake in the bank by 4% from 94%.
The bank is also looking to raise ₹10,000 crore through infrastructure bonds, Mr. Srivastava said.
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