Indian Overseas Bank(IOB)'s Record Q2 Profit surges 61%

 

Indian Overseas Bank (IOB), based in Chennai, reported a 61% year-over-year increase in net profit for the second quarter of the current fiscal year, reaching an all-time high of ₹1,258.82 crore, up from ₹779.61 crore in the July–September quarter of FY25. This increase was primarily due to improved asset quality and higher interest income. 

 For the quarter that ended in September 2025, the bank's overall operating income increased by 15% to ₹7,850.89 crore, up from ₹6,853.94 crore during the same time the previous year. Interest revenue, which is fueled by lending, is the source of net profit. IOB's managing director and CEO, Ajay Kumar Srivastava, stated that the company's net profit improved as a result of an increase in credit and interest income.

In Q2FY26, the bank's core revenue, or net interest income (NII), increased by 21% to ₹3,059 crore from ₹2,538 crore in the previous year. As of September 2025, the gross non-performing assets (GNPA) ratio was 1.83 percent, up 89 basis points from 2.72 percent the previous year. 

 Compared to the same quarter last year, when it was 0.47 percent, the net NPA ratio dropped 19 basis points to 0.28 percent. During the quarter, the slippage ratio was 0.11 percent and the credit cost was 0.18 percent, while the provision coverage ratio increased 42 basis points from 97.06 percent to 97.48 percent.

"This year, we aim to grow our business to a size of about ₹6 trillion, so making ₹1,000 crore in net profit is no longer a problem. We are onboarding additional clients in order to resolve CASA concerns. 

 We have onboarded 8.5 million users in the past two fiscal years and this half-year combined," Srivastava stated. CASA deposits rose 4% year over year to ₹1.37 trillion in Q2FY26 from ₹1.32 trillion the previous year, a gain of ₹5,531 crore. During the quarter, the CASA ratio was 40.52 percent.

From ₹851 crore in Q1FY26 to ₹874 crore for the quarter that ended in September, the total recovery climbed. The amount recovered from the written-off accounts was ₹461 crore. 

 As of September 2025, the bank's overall revenue increased by ₹76,233 crore to ₹6,17,034 crore, a 14% increase from ₹5,40,801 crore the previous year. Total deposits rose 9.15 percent year over year, from ₹28,414 crore to ₹3,39,066 crore from ₹3,10,652 crore in Q2FY25. As of September 2025, gross advances increased by 20.78 percent to ₹2,77,968 crore, up from ₹2,30,149 crore during the same period the previous year.

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Indian Overseas Bank(IOB) Q1 Net profit jumps 76% YoY; asset quality and margins

 

Indian Overseas Bank, a state-run institution based in Chennai, announced a staggering 76 percent increase in net income for the June quarter at Rs 1,111.04 crore following a solid performance in all important metrics, particularly the asset quality side. 

According to a statement released by the management on Friday, the lender's total revenue increased 17% to Rs 8,866.47 crore, including other revenue of Rs 1,480.92 crore. 

The net interest margin was 3.04 percent, and the crucial net interest income increased by nearly 13 percent to Rs 2,746 crore. This resulted in an operational margin of 26.59 percent, up from 22.14 percent, and a net profit margin of 12.53 percent, up from 8.36 percent.

Regarding asset quality, the bank's non-performing assets showed a drop both annually and sequentially. Net NPAs decreased from Rs 1,153.51 crore to Rs 816.38 crore, while total NPAs decreased from Rs 6,648.71 crore to Rs 5,178.46 crore. Provisions and contingencies thus decreased from Rs 937.87 crore to Re 844.05 crore. 

 Gross non-performing assets (NPAs) decreased by 92 basis points on an annualized basis and 17 basis points on a sequential basis, from 2.89 to 1.97 in percentage terms. Likewise, net non-performing assets (NPAs) decreased from 0.51% to 0.32, or by 19 and 5 basis points, respectively. The provision coverage ratio increased to 97.47, a 51-bps improvement. Gross advances rose from Rs 2,30,092 crore to Rs 2,62,421 crore, a 14.05 percent increase.

The growth of deposits was 10.75%, rising by Rs 32,111 crore to Rs 3,30,792 crore. Gross advances rose 14.05% to Rs 2,62,421 crore, or Rs 32,329 crores. While the credit cost remained constant at 0.29%, the slippage ratio increased by 3 basis points to 0.10. From Rs 582 crore to Rs 851 crore, the bank recovered an additional Rs 269 crore.

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Indian Overseas Bank(IOB) Local Bank Officer (LBO) Recruitment 2025 Notification Released, Apply Online

Indian Overseas Bank (IOB) has issued the official notification for the recruitment of Local Bank Officer (LBO) posts. The IOB LBO Recruitment 2025 notification was released on 9 May 2025, and the online application process will be open from 12 May 2025 to 31 May 2025. A total of 400 vacancies are available under this recruitment drive.

Indian Overseas Bank LBO Recruitment 2025 Overview

Organization	Indian Overseas Bank (IOB)
Post Name	Local Bank Officer (LBO)
Total Vacancies	400
Application Mode	Online
Job Location	All India
Official Website	www.iob.in

Indian Overseas Bank LBO Recruitment 2025 Important Dates

• Notification Date : 09 May 2025
• Apply Online Start Date : 12 May 2025
• Last Date to Apply : 31 May 2025
• Pay Exam Fee Last Date : 31 May 2025
• Exam Date : To be released

Indian Overseas Bank LBO Recruitment 2025 Application Fee

• Gen/OBC/EWS : Rs 850/-
• SC/ST/Other : Rs 175/-
• Mode of Payment : Online

Indian Overseas Bank LBO Recruitment 2025 Age Limit

• Minimum Age : 20 Years
• Maximum Age : 30 Years
• Age Limit as on : 01/05/2025
• The age relaxation will be given as per the rules.

Indian Overseas Bank LBO Recruitment 2025 Selection Process

The Indian Overseas Bank LBO Recruitment 2025 selection process includes the following stages:

• Written Exam
• Local Language Test
• Interview Test
• Medical Examination

Indian Overseas Bank LBO Recruitment 2025 Exam Pattern

• Negative Marking : 1/4th

Post Name	Qualification
Local Bank Officer (LBO)	Graduation + Knowledge of Local Language

Subject	Question	Marks	Time
Reasoning & Computer	30	60	60 minutes
General/ Economy/ Banking Awareness	40	40	30 minutes
Data Analysis and Interpretation	30	60	60 minutes
English	40	40	30 minutes
Total	140	200	3 Hours

Indian Overseas Bank LBO Recruitment 2025 Notification PDF & Apply Online Form Link

Notification PDF

Apply Online (From 12.5.2025)

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Indian Overseas Bank(IOB) Q4 profit jumps 30%

 

On Friday, May 2, Indian Overseas Bank said that its standalone net profit for Q4FY25 increased by 30% year-over-year (YoY) to ₹1,051.07 crore, up from ₹808.10 crore in the same period the previous year. 

 In comparison to the same quarter last year, when it was ₹1,961.11 crore, the bank's operating profit before provisions and contingencies for the current quarter was ₹2,617.92 crore, a 33.5 percent increase. At ₹3,123 crore, Net Interest Income (NII) grew 13% year over year. 

 During the quarter, the bank's gross non-performing assets (NPA) decreased 21.3% year over year to ₹5,347.72 crore from ₹6,794.43 crore in Q4FY24.

Additionally, net NPA decreased by 25% year over year to ₹911.86 crore from ₹1,216.86 crore. In comparison to the same quarter previous year, when it was 0.57 percent, net non-performing assets (NPA) were 0.37 percent. 

 Compared to Rs 1,961 crore during the same period last year. With the gross-non-performing assets ratio dropping to 2.14% at the conclusion of the most recent fiscal year from 2.55% three months prior and 3.10% a year earlier, the bank's asset quality improved. 

 Supported by a nearly 30% increase in retail loans and a 34% growth in agri-loans, its gross advances increased 14.15% year over year to Rs 2.50 lakh crore.Total deposits rose 9.11% to Rs 3.12 lakh crore with the share of current and savings account deposits standing at 43.65%.

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Gold Loan Fraud of Rs.1.65 crore in Bank: Female Officer Fired

An assistant manager at the Rajim branch of Indian Overseas Bank was arrested for stealing more than Rs 1 crore through the issuance of fraudulent jewelry loans. Ankita Panigrahi, the accused, was apprehended from Bargarh, Odisha, by the State Economic Offenses Investigation Bureau (EOW). The police started questioning her and pursuing additional legal action after the arrest.

Ankita Panigrahi was employed in 2022 as an Assistant Manager at Indian Overseas Bank's Rajim branch in the Gariaband district. She created fictitious jewelry loan records there by abusing locked bank accounts. She was able to take out Rs 1 crore 65 lakh from the bank in fraud by doing this.

When this fraud was discovered, the bank fired her right away. The Economic Offenses Wing (EOW) then formally filed a case against her in 2023. The case was brought under Section 409 of the Indian Penal Code, which addresses criminal breach of trust by a public worker, and Section 13(a) of the Prevention of Corruption Act, 1988 (as amended in 2018).

For a long time, Ankita had been absconding (hiding from the authorities), but the EOW finally tracked her down in Bargarh, Odisha. She was taken into police custody (remand) so that officials could question her thoroughly about the fraud. The EOW is now conducting a detailed investigation to uncover the full extent of the scam and to check whether other people were involved.

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Government will sell stake in three PSU banks, why this situation came?

The central government can sell stake in three big public sector banks. These three banks are UCO Bank, Punjab and Sindh Bank and Indian Overseas Bank. The government has more than 95% stake in these, the rest is with public investors.

Let us tell you that as per the Minimum Public Shareholding (MPS) rules of SEBI, all listed companies should have at least 25% public shareholding. Keeping this in mind, the government has made a plan to sell its stake.

Live Mint news quoted sources as saying that depending on market conditions, the three banks may conduct multiple rounds of qualified institutional placement (QIP) in FY2026 to meet regulatory requirements.

The government has allowed public sector banks to explore equity dilution this year and time their market offerings strategically, a source said. The stake sale is expected to be between 5-10% of the paid-up equity capital this year.

SEBI gave time till August 2026 to public sector banks to comply with the rule. At the same time, Life Insurance Corporation of India (LIC) was given time till 16 May 2027 to reach 10% public shareholding.

By December 31, 2024, seven of the 12 public sector banks—State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Indian Bank, Union Bank of India and Bank of India—had fulfilled SEBI's MPS requirement.

Bank of Maharashtra and Central Bank of India have not yet taken steps to comply with the MPS rule. Let us tell you that the government has 93.08% stake in Central Bank of India, 79.60% in Bank of Maharashtra, 95.39% in UCO Bank, 98.25% in Punjab and Sindh Bank and 96.38% in Indian Overseas Bank.

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Indian Overseas Bank(IOB) Q3 Profit climbs 21% YoY

Indian Overseas Bank (IOB), a state-owned bank, reported on Monday that its consolidated net profit for the third quarter ended December 2024 increased by about 21% year-over-year (YoY) to Rs 875.27 crore, up from a profit of Rs 724.14 crore in the same period the year before. 

In the third quarter that concluded on December 31, Indian Overseas Bank's net interest income (NII), which is calculated as interest generated less interest spent, increased 16% year over year to Rs 2,789 crore from Rs 2,398 crore in the same quarter the previous year.

On the asset quality front, the lender said its gross non performing assets ratio improved to 2.55% in the third quarter of fiscal 2025, as compared to 2.72% in the previous quarter of the same financial year. Similarly, net non performing assets improved to 0.42% in the December quarter, from 0.47% in the second quarter of FY25.

Also Read - Quarterly Results of all banks for Q3FY25

In the December quarter of FY25, provisions stood at Rs 1,028.6 crore, as against Rs 701.42 crore in the same quarter last year. The provisions in the September quarter of fiscal 2025 was Rs 1,146.3 crore.

The lender’s gross non performing assets (GNPA) improved to Rs 6,070.5 crore in the third quarter of FY25, from Rs 6,249.07 crore in the previous quarter of the same financial year.

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Government plans to sale stake in five PSU banks

A Rs.10,000 crore fund-raising plan for five state-run institutions via the Qualified Institutional Placement (QIP) route has been approved by the government.



According to sources, four additional lenders—Punjab & Sind Bank, Indian Overseas Bank, UCO Bank, and Central Bank of India—have been given permission to raise money in addition to the Bank of Maharashtra. According to the sources, these lenders may begin raising money in tiny installments as early as the fourth quarter of the 2025 fiscal year.

"The Department of Disinvestment and Public Asset Management (DIPAM) has also been mandated to sell a stake in these lenders through the Offer For Sale (OFS) route," the sources noted.



By August 2026, the government hopes to have a minimum of 25% of these PSU banks' shares held by the general people. The Department of Financial Services has administrative authority for state-run lenders.



According to the most recent shareholding pattern on the BSE, the government owns 79.6% of Bank of Maharashtra, 98.25% of Punjab & Sind Bank, 96.38% of Indian Overseas Bank, 95.39% of UCO Bank, and 93.08% of Central Bank of India as of the end of the December quarter.Based on the current share price, the excess government stake in these five lenders stands at nearly Rs.50,000 crore.

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