Indian Overseas Bank Confident Of Maintaining Over Rs 1,000 Crore Net Profit In This FY: MD & CEO

Public sector Indian Overseas Bank was confident of maintaining its over Rs 1,000 crore net profit in the coming quarters. The city-headquartered bank had registered its first ever highest net profit of Rs 1,051 crore in the January-March 2025 quarter.

"Exactly. One hundred per cent sure. We are very confident of maintaining this and growing it from here. If you see our net profits figure over the last two years, quarter on quarter, it is increasing. The graph has been very consistent," the bank's Managing Director and CEO Ajay Kumar Srivastava said.

He was responding to a query from PTI on whether the bank was confident of maintaining the growth in the net profit during this financial year.

He said, "in the fourth quarter of the last financial year (January-March 2025), the bank reported its highest ever net profit of Rs 1,051 crore and in June 2025 quarter, supposed to be a lean quarter, from that Rs 1,051 crore we have grown to over Rs 1,111 crore net profit, another highest ever net profit for the bank."

"We are very confident of maintaining it and growing further," he added.

For the April-June 2025 quarter, Indian Overseas Bank reported a 76% jump in net profit to Rs 1,111 crore as compared to Rs 633 crore registered in the same quarter of last financial year.

To a query on the outlook for the year, Srivastava said he expected the bank to grow at 12% on overall business segment during the current financial year, similar to last year.

"Last year, it was around 12% business growth. That is very comfortable to maintain. That is the minimum also. Beyond that (12%) also we are expecting to grow (in this financial year)," he said.

On the target recovery for this year, the Managing Director said, "In the beginning of the financial year we gave a guidance of Rs 4,500 crore as recovery for the entire financial year."

"Out of that in Q1, we have done Rs 851 crore and remaining we are very very comfortably doing it. In fact, if you see our recovery numbers of last two years, we have made recovery of around Rs 4,500 to Rs 5,000 crore every year," he said.

Asked how much credit growth was expected during this financial year, he said it is expected to be around 12-13% during the current financial year.

To another query whether the bank has planned to open a branch in Gift City, Gandhi Nagar, he replied that the bank is in the process of obtaining approvals to open a branch in that city.

"So, in Gift City (Gandhi Nagar, Gujarat), we do not have a branch as such. We are in the process of getting approvals and depending on the approvals, we will be opening a branch. It is in our priority and we want to have one branch as early as possible," he said.

On the performance of gold loan portfolio, he said it has been a consistent portfolio for the bank and every year, the bank has been witnessing a 37-38% growth under this segment.

"This year again, we will be growing (around 37-38%). That is one more important activity in the state of Tamil Nadu," he noted.

According to Srivastava, the bank has planned to raise Rs 4,000 crore during the current financial year, thereby the Government of India shareholding in the bank is expected to come down to 90% from the current 94%.

"This fund raise we expect to happen in Q3 of this financial year. It may happen in one or two tranches. After this (fund raise,) the government of India shareholding will come down to 90%," he remarked.