On profits, Srivastava said that while the bank is generating strong earnings, it does not provide earnings per share (EPS) forecasts. He explained, “Our job is to give good numbers, generate good profit…beyond that, we do not have any control on other factors.” Credit growth at IOB is balanced across retail, agriculture, micro, small & medium enterprises (MSME), and corporate segments, ensuring diversified and sustainable expansion.
Srivastava also discussed the bank’s planned shift to the new tax regime in Q3 or Q4, emphasising that it will not adversely affect the profit and loss (P&L) and will help protect return on asset (ROA), which has improved from 0.82% to 1.2%. He highlighted that asset quality remains strong, with slippages at just 0.11–0.12%, and deposit growth continues steadily at 9.1%, focusing on stable retail and current account and savings account (CASA) deposits.
To maintain margins despite repo rate cuts, IOB reduced repo-linked lending from 60% to 46% and shifted to a marginal cost of funds-based lending rate (MCLR). Srivastava explained that this, combined with selective lending and good pricing, has allowed the bank to protect margins, saying, “Over nine months of meticulous planning and successful implementation of the strategy has resulted in that.”
Also Read: Indian Overseas Bank Q2 Results: Stock jumps after 58% profit growth, asset quality improvement
The bank reported a strong July-September quarter of 2025 (Q2FY26), with net interest income (NII) increasing 21% year-over-year to ₹3,059 crore from ₹2,537 crore. Net profit surged 58% to ₹1,226 crore, up from ₹777 crore a year ago. Asset quality improved sequentially, with Gross NPA easing to 1.83% from 1.97% and Net NPA falling to 0.28% from 0.32%.
Indian Overseas Bank has a market capitalisation of about ₹75,197 crore, with shares down nearly 31% in the last year.
For the entire interview, watch the accompanying video
