The Net Interest Income (NII) or core income earned by the bank increased by 21% from the same quarter last year to ₹3,059 crore. NII in the base quarter stood at ₹2,537 crore.
Net profit for the period stood at ₹1,226 crore, which is a growth of 58% from the year-ago quarter’s profit of ₹77 crore.
Asset quality for the lender improved on a sequential basis. Gross NPA for the quarter stood at 1.83% from 1.97% in June, while Net NPA stood at 0.28% from 0.32% in the previous quarter.
In absolute terms, gross NPA for Indian Overseas Bank stood at ₹5,078 crore as of September 30, compared to ₹5,178 crore sequentially, while net NPA stood at ₹776 crore from ₹816 crore in June.
Provisions for the quarter declined to ₹672 crore from ₹844 crore in June. Lower provisions contributed to profitability. Provisions for NPAs stood at ₹121.5 crore, down from ₹179 crore in the previous quarter.
Shares of state-run lenders such as Indian Overseas Bank and other peers had surged on Wednesday, after a report from Moneycontrol had stated that Indian Overseas Bank, Central Bank of India, Bank of India and Bank of Maharashtra could be merged with big banks such as Punjab National Bank (PNB), Bank of Baroda (BoB) and State Bank of India (SBI), citing government sources with knowledge of the matter.
Shares of Indian Overseas Bank are currently trading 2% higher after the earnings announcement at ₹41. The stock is flat in the last one month but has been an underperformer, declining over 22% year-to-date.
First Published: Oct 16, 2025 12:22 PM IST
