Are I O B latest results good or bad?

Indian Overseas Bank (IOB) has reported its financial results for the quarter ending June 2025, showcasing a notable enhancement in several performance metrics. The Profit Before Tax (PBT) reached Rs 32.98 crore, reflecting a significant growth compared to the average PBT of the previous four quarters, which was negative. Additionally, the Profit After Tax (PAT) achieved a record high of Rs 1,111.04 crore, indicating a growth over the previous four-quarter average. The Earnings per Share (EPS) also reached its highest level in five quarters at Rs 0.58.
On the asset quality front, IOB reported a Gross Non-Performing Asset (NPA) ratio of 1.97%, the lowest in five quarters, while the Net NPA ratio fell to 0.32%. These figures suggest improvements in asset quality. However, it is noteworthy that a substantial portion of the bank's PBT, specifically 97.82%, came from Non-Operating Income, which raises questions regarding the sustainability of its income sources.

In terms of quarterly performance, there was a decline in Interest Earned, which fell by 3.25% compared to the previous quarter. The Net Profit showed a more modest growth of 5.71%, down from a higher growth rate in the prior quarter. Operating Profit also experienced a decline of 9.93%.

Overall, while IOB's financial performance indicates positive trends in profitability and asset quality, the company has seen an adjustment in its evaluation, reflecting the mixed results in certain operational metrics.