Indian Overseas Bank Q4 results: Net profit jumps 30% YoY; board approves fundraising of up to ₹5,000 crore

Indian Overseas Bank Q4 results: Indian Overseas Bank on Friday, May 2, reported a 30 per cent year-on-year (YoY) jump in standalone net profit to ₹1,051.07 crore for Q4FY25 compared to a profit of ₹808.10 crore in the same quarter last year.

The bank's operating profit before provisions and contingencies for the quarter under review stood at ₹2,617.92 crore, up 33.5 per cent from ₹1,961.11 crore in the same quarter last year.

Net Interest Income (NII) increased 13 per cent YoY to ₹3,123 crore.

The bank's gross NPA declined 21.3 per cent YoY during the quarter, standing at ₹5,347.72 crore compared to ₹6,794.43 crore in Q4FY24.

Net NPA also declined 25 per cent YoY to ₹911.86 crore from ₹1,216.86 crore. Net NPA stood at 0.37 per cent compared to 0.57 per cent during the same quarter last year.

Indian Overseas Bank FY26 fundraising details

Meanwhile, the bank also disclosed its fundraising plans for the current financial year through a combination of the issuance of Basel III-compliant Tier II bonds and equity capital.

The bank said its board has approved raising up to ₹4,000 crore in equity capital, including share premium (if any), through one or more methods such as a follow-on public offer, rights issue, qualified institutional placement (QIPs), ESPS, preferential issue, or a combination of these. The funds may be raised in one or more phases during FY26, subject to approval from shareholders at the AGM/EGM and other required regulatory approvals.

Moreover, the board also approved raising up to ₹1,000 crore through the issue of Basel III-compliant Tier II bonds, depending on the requirement. The funds may be raised in one or more phases during FY26, either through private placement or a public issue, in India or abroad, with or without a green shoe option.

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