The bank’s net interest margin for the quarter improved to 3.58% from 3.53% in the year-ago period.
The net interest income rose 13% at Rs 3,123 crore even as other income declined 36% at Rs 1581 crore.
IOB’s operating profit for the quarter stood 34% higher at Rs 2,618 crore against Rs 1,961 crore in the year-ago period.
The bank’s asset quality improved with gross-non-performing assets ratio falling to 2.14% at the end of the last fiscal from 2.55% three-months back and 3.10% a year-ago.
Its gross advances expanded 14.15% year-on-year to Rs 2.50 lakh crore, backed by a near 30% surge in retail loans and 34% growth in agri loans.Total deposits rose 9.11% to Rs 3.12 lakh crore with the share of current and savings account deposits standing at 43.65%The bank board approved a plan to raise up to Rs 4000 crore in FY26 by way of selling shares. If it exercises this approval to the full extent, the bank’s government holding would come down to 90% from 94.6%, managing director Ajay Kumar Srivastava said.
The Securities and Exchange Board of India has set a deadline of August 2026 for IOB to bring down promoter holding to 75%.
The bank’s share price rose 0.66% Friday to Rs 37.85 on BSE after it announced the quarterly numbers during the market hours.