Indian Overseas Bank (IOB) posted a robust set of results for the December 2024 quarter, with a 21% year-on-year (YoY) growth in net profit, reaching ₹873 crore compared to ₹722 crore in the same period last year. On a sequential basis, the net profit improved by 12.35%, up from ₹777 crore in the September quarter. The bank’s net interest income (NII) rose 16.35% YoY, amounting to ₹2,789 crore, up from ₹2,397 crore in Q3FY24, reflecting a solid growth trajectory. Other income also saw a healthy increase, climbing 13.60% to ₹1,297 crore from ₹1,261 crore in the corresponding quarter last year. This resulted in a 27.3% increase in pre-provision operating profit (PPoP), which reached ₹2,266 crore, compared to ₹1,780 crore in Q3FY24. In terms of gross NPAs, the bank saw a decline in absolute terms to ₹6,070 crore from ₹8,440 crore quarter-on-quarter, while net NPAs reduced to ₹975 crore from ₹1,059 crore year-on-year. The return on assets (ROA) improved to 0.93%, up 7 basis points from the previous year. Additionally, the bank recently announced the sale of ₹11,500 crore worth of non-performing assets (NPAs) to asset reconstruction companies. In response to the strong earnings report, IOB’s shares surged by 6%, reaching ₹53.65 apiece. Despite this rise, the stock remains 23% lower than its level in June 2024, following a massive 318% rally between June 2022 and May 2024.