Indian Overseas Bank (NSE: IOB) Q4 2025 Earnings Call dated May. 02, 2025
Corporate Participants:
Madhaw Chandra Jha — Chief Executive Officer
Ajay Kumar Srivastava — Chief Financial Officer
Analysts:
Sonali Pandey — Analyst
Ashok Ajmera — Analyst
Niteen Dharmawat — Analyst
Aryan Rana — Analyst
Rajkumar Vaidyanathan — Analyst
Sushil Choksey — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to earnings conference call of Indian Overseas bank arranged by Veritas Repetition pr. At this moment all power spin lines are in the lesson only mode. Later we will conduct a question and answer session at that time. If you have a question please press star and one on your touchstone keypad. Please note that this conference is being recorded. I now hand the conference over to Ms. Sonali Pandey from Veritas reputation. Thank you. And over to you ma’am.
Sonali Pandey — Analyst
Thank you, Michelle. Good evening and welcome to Indian Overseas bank conference call to discuss the financial results for the fourth quarter and full year ended March 31, 2025. Indian Overseas bank, headquartered in Chennai continues to strengthen its footprint across India with a robust network of over 3,335 branches and about four overseas. Branches approximately with 3,497 ATMs and 10,135 business correspondents internationally. IOV serves customers in Singapore, Hong Kong, Thailand and Sri Lanka, proudly catering to a growing base of 41 million active customers. Our comprehensive range of services includes personal, corporate and agricultural banking along with credit cards, loans and insurance products. The financial results and related disclosures are available on our website and have also been filed with the stock exchanges. Before we begin, please note that today’s discussion may include forward looking statements which are subject to risks and uncertainties that may impact actual outcome. We encourage you to keep these factors in mind while evaluating the bank’s performance. Joining us today are Mr. Ajay Kumar Srivastava, Managing Director and CEO Mr. Joydeep Duttaroi, Executive Director. Mr. Nanaraj T, Executive Director. We will start with an overview of the Bank’s performance for Q4 and FY 2025 followed by a Q and A session. Now I invite Mr. Madhav Chandraja, Chief Financial Officer of Indian Overseas bank to present the financial highlights. Over to you, sir.
Madhaw Chandra Jha — Chief Executive Officer
Yeah. Thank you madam. Lovely madam. Good evening to all. I am pleased to present the overview of the bank’s performance during the quarter and year ended 31st March 2025. Regarding the performance of the bank during 31st March 2025 bank has achieved a business mix of 5,61,000 crores.
First time it is lost 5 lakh 15 thousand crores and reporting a year and year growth of 11.30%. Then CASA also grown by 1,36,161. With year on year growth of 8.49%. Total deposit growth achieved at 3.11,939 crore. As on 31st March with a growth percentage of 9.11%. So gross advance grown year on year basis by 14.15%. That is 2 50,019 crores against the 2 19,018 crore last year. Last time. Bank has shown an operating profit of 8,688 crore registering a growth of 28.44% and net profit of the bank Year on year basis it has increased by 25.56% to 3,335 in PCR provision coverage ratio has increased to 97.3.0% as on 31st March as compared to 96.85% last year. Capital adequate C O Due to that we had gone for QIP first we had generated 1,437 crores so it has increased to 19.74% as against the 11.50% mandatory requirement from the RBA total income increased by 13.36% to 33,636 crores. Overall net interest income for the quarter for March has increased to 3100 to 3123 crore showing a year and year growth of 13.03 percentage and cost of deposit increased to 5.08% for this cost of fund increased due to the increase of the bordering 2 meter rising demand of the credit. After that madam, this yield on Investment improved to 6.83% due to planned investment in high security and yield on improved to 8.82% mainly due to the improved margin from the dam segment. So dam segment we are doing good that. We have to return on asset of March 25 is 1.12%. So first time we had crossed 1% earlier it was less than 1%. So first time we had increased to 1.12%. That is 11 leaves year income return on equity also increased to 16.28%. Cost to income ratio goes to 47.14% as compared to last year. So that 918 deals NPA reduced to 6794 crore as compared to 5348 crore last year. So net net NPA reduction from 1217 crore to 92009012 crores. So percentage wise it has come to 0.37% this time. So total total disav from during the quarter is 9.9992crores. And the year and years it is 4014crores.
Questions and Answers:
Sonali Pandey
Thank you, sir. Thank you very much. We will now begin the question and answer session. Anyone? Thank you very much.
Operator
Thank you very much, ma’am. Ladies and gentlemen, we will now begin with a question and answer session. Anyone who wishes to ask questions may press star and one on the Touchstone phone. If you wish to withdraw yourself from the question queue, you may Press Star and 2. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. You may please press star and one to ask questions.
The first question is from the line of Ashok Ajmera from Ajkan Global. Please go ahead.
Ashok Ajmera
Good afternoon.
Operator
I’m sorry to interrupt you sir. You were not audible earlier. Can you please repeat your question?
Ashok Ajmera
Okay. Good evening sir and compliments to you for the fantastic set of rumble for the quarter and the year. Now. Am I audible now?
Ajay Kumar Srivastava
Yes sir. Good evening.
Ashok Ajmera
Yeah, so I was interrupted saying that I am not audible. So whether I am audible now.
Operator
Yes sir, you’re audible. Please proceed.
Ashok Ajmera
Yeah, okay. So my compliments to you sir for the good set of numbers. You crossed ROI for the first time. 1% in this quarter. 1.12% and the overall business also has. Business growth has also been good in this difficult environment. Especially on the front of the deposit and the credit growth in many other banks people are facing. Whereas you have done well on the advances front of 14.15% and deposit 9.11%. If you so on the whole it’s a good set of results.
I have some couple of questions and some variation some data points. My first point is on the fresh slippages which has gone up to 2,756 crore. Would you like to elaborate on that fresh inputs to NPA category, what kind of accounts and what is the reason for it and something. Can you give some color on this? My first question please.
Ajay Kumar Srivastava
In fact all along we have been consistently maintaining slippery ratio around 0.15, 0.16, 0.17 this quarter also we always maintain it. But one account of MTNL that is already there in the public domain. All of you know that. So 2332 crores of MTN allowance account became NPA in February this year in Q4 and because of that only total slippages have gone up to 3568 crores. If you take that out then total slippage for the Entire year is 1200 crores only which is lower than the previous year’s slippage of 1500.
Ashok Ajmera
Sir, what will be the rate of NPNL now? Like there must be talk going on to bring it back to the tender category or what is the process now to be followed to bring down our NPA? Though you though the GROT NPAs are under control because there is a heavy written off of 3,043 crores. Write off in this quarter. But still it’s a matter of concern only. So what is it? What generally happens in this kind of state now?
Ajay Kumar Srivastava
Sir, discussions are happening amongst ministry officials. Some resolution we are expecting in this quarter. And hopefully we will get our entire money back. That is what we are expecting.
Ashok Ajmera
Yeah. You must get the entire money and check why on impairment we should lose any money when the government undertaking. Anyway, sir, there is a. We have a investment in universal Tempo General Insurance of 18.06% which is basically a minority interest. And it is not coming in our control edition books also because of less than 25%. So any plan on this either eyeing off or entry will be a case
Ajay Kumar Srivastava
In fact increasing the state can be considered. Sir, that is not under active consideration. I will say. But we’ll go to the board and discuss about that. But hiring of is certainly not on the target. We like to maintain it.
Ashok Ajmera
Okay, sir. And there is a loss in the other investment in associate books. So what is. What is exactly is that 331 crore adjusted against the rentals and surplus. So this belongs to which associate company which we have to write up
Ajay Kumar Srivastava
331 crores.
Ashok Ajmera
No, no. This is not number nine in investment in associate. Yeah, as 23.
Ajay Kumar Srivastava
Okay. Okay. That was JV we are having in fact the. The new definition of treasury revaluation. The treasury thing Montreal came by from early last year.
Ashok Ajmera
Yes.
Ajay Kumar Srivastava
So as a part of that only the entire thing was restructured. Time also it was discussed. This is only an accounting entry. So it is not having any on the balance sheet. It was. It was part of the compliance of the guidelines issued by rbi. As a result of that only it has happened.
Ashok Ajmera
Next question is on the. Which I have been raising in earlier meetings also is about the disputed tax liability. So that continues to be there in the notes. Which auditors have given notes to the account. And even last time also we had. I think one or two quarterback also we had a discussion on this that it is there with all other banks also. But we have not seen this kind of note in any other. You know most of the other public sector banks that they produce disputed tax liability of 4062 crores and in plus that is income tax then service tax 265 crores and GST 16 crores. So where do we stand today? I mean why is it taking so much of time to settle the liabilities? And there is a process in the all the tax laws where you can press for early disposal of the cases.
Ajay Kumar Srivastava
Yes sir. So two, three things sir. First thing is that we have gone through the notes on accounts of some of the banks who real come recently. And I think that this is there also as part of disclosure. That is one person. But last time when we discussed if you remember the total disputed tax liability of 9,700 crores almost. And during last four to five months we have of course against all those demands we went for appeal and last four months giving effect orders from the appellate authorities we have got to the tune of 4402 crores.
That was of course disclosed also and it came in the newspapers. So from 9,700 it has come down to 5,900 as on date. Why I’m giving you sharing these numbers with you is that is that the appeal which we made against against the claim by the respective authorities, our appeal and our justification has been accepted by the appellate authority. And as a result of that only 4402 crores of giving effect orders came to us.
And the disputed tax liability has come down to 5,933 crores depending on the demands and nature of demand. And our conviction that these demands are not justifying a bond for a deal. And we are 100% sure that this for remaining amount also we are going to get the giving effect orders and liability against this will not arise.
That has been the numbers which I gave to you. And depending on the facts and discussion with the experts we assure that this liability, this demand will not crystallize on the bank. But as a matter of corporate governance, as a matter of hundred percent transparency we make it a point that we disclose this for the benefit of everyone.
Ashok Ajmera
No, that’s very good sir. On this IP refund of 4402 crores you must have received good amount of interest also. What is the interest amount on this?
Ajay Kumar Srivastava
It has gone to the income. It has gone to current account. Sir. Interest amount yet to be decided.
Ashok Ajmera
No, no credit has been taken in P and L on account of that interest. Whatever
Ajay Kumar Srivastava
Is there in this exact numbers, I don’t remember. We’ll come back, sir.
Ashok Ajmera
Okay. All right, sir, I will take it is announced on the coming back on the business and the credit growth and as well as the deposit growth. We are sitting on a TD ratio of global at around almost about 80% and domestic is 76.96%. So going forward, what is your target for now for FY26 or maybe one or two quarter next quarter on the credit growth you want to continue it at 14 15% or is there any change? And the same what is the target in the for the before
Ajay Kumar Srivastava
Sir, Credit growth for this year also we would like to grow at around 14 to 15%. That will continue and to demand that and to match that growth to address that growth, we need to grow our deposit also this year we have grown by 9.11%. We have got our strategy in place and our plan is to grow deposit to the tune of 12 to 13% in this financial year. Yes.
Ashok Ajmera
All right. Thank you very much for this round of questioning. I have some a couple of data points also to be discussed. But if time permits, I’ll come back again, sir.
Ajay Kumar Srivastava
Sure, sir. Welcome.
Operator
Thank you. The next question is from the line of Nitin the Dharmavat CFA from Aurum Capital. Please go ahead.
Niteen Dharmawat
Yeah, thank you for the opportunity. Am I audible?
Operator
Yes.
Ajay Kumar Srivastava
Yeah.
Niteen Dharmawat
My first question is what is the plan to expand the branch network during the next financial year and what will be the guidance for the cost to income ratio? Last year or last quarter rather it went down to 44% and for the year it remained at around 47%. So can you provide some more details about this?
Ajay Kumar Srivastava
Yes, sir. So, branch opening the last year. Last financial year we opened 101 branches against targeted number of 88. And this year also the guideline, the guidance is that we will try to open new branches at new centers which should be matching to this number above any. It can be any number above 100.
So that is the plan that that will happen. And regarding cost to income, we are at 44.35 for quarter ended March 25 year on year if you see it has come down from 56% to 47%. So reduction of 918 bips. And going forward since income is increasing, we are expecting to maintain it at around 44 or maybe. Maybe one or 200 dips lower than that, around 42% by the end of this year. That is what we are looking at.
Niteen Dharmawat
And in segmental NPS in MSME segment it’s been, you know, close to 3%. So do we see any stress over there? What is your reading for the sector?
Ajay Kumar Srivastava
There is more stress as such as a product I will say as MSME sector there is more stress as such. There are individual accounts and because of their own individual peculiarity some of the accounts are under stress. It’s not high value and that is the nature of business. It keeps happening. What I am trying to say is that it is nothing unusual. We do not see any stress in MSME portfolio as such.
Niteen Dharmawat
Let me rephrase now. Where do you see the stress in the economy in general? Do you see anywhere place in the economy sector where you see whether we are lending there or not is a different question. But in general,
Ajay Kumar Srivastava
Yeah. MSME continues to play a major part in economy and the growth of the economy also. And our MSME exposure I think around 29 to 30% of our total exposure in MSME and it is one of the most important parameters for the bank to grow in that sector. So focus is there and MSME constitutes a lot of government schemes also.
Apart from that what we are focusing at is mid level MSME closer to 3 digit or double digit, higher end of double digit MSME numbers that we are looking at that we are focusing on and in addition to that we are focusing on those sectors where a government plis scheme is operational.
Niteen Dharmawat
I was not looking only at MSME sector per se but in general anywhere you see in the economy, whether it is MSME rural or you know, micro lending or gold loan or anywhere actually in any of the sectors you see we stress
Ajay Kumar Srivastava
We are, we are growing in all sectors. If you see Retail, Agri, MSME and we are having 3400 branches almost across the geography. So depending on the geography and depending on the activity happening in that geography, lending is happening and growth is happening.
So I cannot pinpoint one particular sector or product overall. Wherever opportunity is there, geography wise or one district, one product concept is there, we are growing, all our branches are doing that lending and RAM sector growth is happening of course corporate sector. There are six large corporate branches from where large corporate sanction happens and that is how we are managing our credit group.
Niteen Dharmawat
My final question is about you know what are the top three accounts other than ntnl where you have, where you you have seen or whether you see any possible NPS or provisioning during the quarter.
Ajay Kumar Srivastava
During the quarter and during the year also we do not see any other account under stress, corporate whatever slippages are happening. It is happening every quarter around 200, 250 crores of slippage happening. And it’s mostly in Ram. Only a small value.
Niteen Dharmawat
Thank you so much sir and wishing you best.
Ajay Kumar Srivastava
Thank you.
Operator
Thank you. Participants, you may please press star and one to ask questions. We’ll take the next question from the line of Arjun Ranav, an individual investor. Please go ahead.
Aryan Rana
Yeah. Congratulations to the IOB for good set of numbers and also all the best for the fundraising plans that the company has. I have a couple of questions sir. One is regarding RBA penalty and the other one is about lending rate reduction. So first I will just ask you about lending rate reduction. So reason for rate cut, what prompted the company to 25bps RLR cut despite unchanged record rates? What was the reason to drive this credit growth or respond to the market trends?
That’s question. And the second is regarding your impact on NIM and profitability. How will this cut effect margins in FY26 and what measures are in place to mitigate impact? So this is on lending rate. And then I will come back to you on RBA penalty. That was.
Ajay Kumar Srivastava
So rate reduction happened because it was reduced by RBI. And as a policy, as per guideline, all retail and MSME products of all banks are linked. Whenever repo gets reduced by the regulator, the automatic transmission happens. And our rate of interest also gets adjusted accordingly immediately.
That is real time transmission. So this 25bps reduction happened because of reduction by RBI in the foreign. That is one part. Second part is that how we are going to mitigate this. So of course interest income will get impacted. So there are two ways to cover it and which we are doing. One thing is that the other 50% of the lending is on MCLR and base rate. So those accounts which can be covered under mclr we are focusing on that. That part so that this loss can be covered. And second thing is that since repo rate is going down in inflation is under control. So the votive rate will also get moderated also be reduced and accordingly the loss will be offset. Regarding penalty I have to convey is that it is Jewel loan and the classification of Javel loan was there was some I will say wrong calculation on the part of the bank regarding classification of Jwel loan and that was corrected. And because of that technical issue this penalty of 31 lakhs has come in the bank.
Aryan Rana
Okay sir. Okay. So any steps characterized steps that the bank will take to strengthen the compliance and internal controls and
Ajay Kumar Srivastava
Yeah, things are in place as far as compliance is concerned. And there is a full fledged compliance department in the back. And there’s a vertical at additional office level also compliance officers are there. And their main job is to ensure that compliance of RBI guidelines, rules, regulations, banks, internal policies, everything are meticulously followed. And there are committee at central office which monitor this.
And at central office level we ensure that compliance function, compliance department functions independently. They have not been given any business vertical or business target so that they can focus on only compliance issue. And the system is working very fine. And compliance level of the bank on all parameters is I will say in the top bracket.
Aryan Rana
Okay, thank you so much. And coming back to your lending rate this thing. So how will the bank asset liability mismatches given the lower.
Operator
I would request you to kindly rejoin the give follow up questions please.
Aryan Rana
I’ll come back. Thank you so much. Sir,
Operator
We’ll take the next question from the line of Rajkumar Vaidyanathan from RK Investments. Please go ahead.
Rajkumar Vaidyanathan
Yeah, good evening sir, can you hear me?
Ajay Kumar Srivastava
Yes, good evening.
Rajkumar Vaidyanathan
Yeah, congrats to the good set of members. Sir. Just few questions first on the capital raise. I just want to know is it an enabling provision or you’re looking at raising the real capital? Because we just made our capital raise a few months back. Just want to know why we are looking at further capital given that our PV ratio is also very good.
Ajay Kumar Srivastava
Yes, you are absolutely. That we do not need capital. As well as growth capital is concerned our CRA at 19.74 and this CRR can take care of our 3 years credit growth comfortably. So for CRR purpose we do not need capital. That is very true. The fact is that the Government of India shareholding is was 96% in the man. And in the month of February we raised 1400 crores of capital through QIP process. And that reduced Government of India shareholding to 94%. And going forward to comply with the SEBI guideline of minimum shareholding we are raising capital from the market to bring down Government of India shareholding further. That is objective. Yeah. Because that will dilute the capital measures. That is the reason that I’m asking why government is not selling its stake.
Rajkumar Vaidyanathan
Yeah. Because that will dilute the capital measures. That is the reason that I’m asking why government is not selling its stake. Instead the bank is raising the. We don’t need the group capital.
Ajay Kumar Srivastava
That is not for us to decide or comment. But whatever we can do as a bank, we are doing that. We are raising capital, going to the market, raising capital. And it shows the level of comfort and trust of the market of the market participants on bank’s growth story. And that is how 1400 crores of press capital were mobilized.
Rajkumar Vaidyanathan
Okay sir, so the next question is what is the recovery that you have? You know the NPA that you are projecting for the next two to three years and particularly for the financial economy.
Ajay Kumar Srivastava
I can comment on this year, current year only. For this year our recovery Target is around 4,500 crores for the entire year. And out of this recovery from technically return of account, if you ask it will be around 40 to 45%.
Rajkumar Vaidyanathan
Okay, but what is the total pool of you know, NP and recording from which you are recording this? I just wonder what is the total size?
Ajay Kumar Srivastava
GNPA is 9,700 crores and net NPA is 912 crores only.
Rajkumar Vaidyanathan
And what is the write of portfolio?
Ajay Kumar Srivastava
Right of portfolio is around 30,000 crores. 30,000 crores.
Rajkumar Vaidyanathan
30,000 crores. Okay. And sir, and what is the guidance for ROE for the financial 25th
Ajay Kumar Srivastava
ROA this quarter? We crossed 1. So we are standing at 1.12%. And going forward the plan is to improve it further.
Rajkumar Vaidyanathan
Will you maintain it or will you improve it in the coming financial year? We will try to maintain it and by the end of this financial year
Ajay Kumar Srivastava
We will try to improve it by an extra. Additional some few basis points.
Rajkumar Vaidyanathan
Okay sir. All the very best. Thank you.
Operator
Thank you. You may please press star and one to ask questions. The next question is from the line of Sushil Choksi from Indus Equity Advisors. Please go ahead.
Sushil Choksey
Congratulations to team IOB on excellent result and a stable outlook. Second is congratulation also on the qip. Sir, this dilution which you answered to the previous question. If I assume that you do 1400 to 2000 crores of QIP, you’ll take at least another 4, 5 rounds before you get to 75. Which will destroy value of the existing shareholders. So I would urge that the government should consider and the request should go out from the bank that we let the OFs happen.
So retail participants rather than doing QIC. Second thing sir, what is our outlook on Treasury? Because this year maybe a bumper harvesting of all banks in India where Treasury profits are concerned. And how would you utilize that for growth? The profits. And second thing is will this lead to that you will diversify to corporate bond which yield higher. And how would you also sustain casa at the same time with falling interest rate regime, CASA would be a good enabler for growth.What is our strategy to increase our saving deposits?
Ajay Kumar Srivastava
So I will start from CASA only sir. CASA and sb. If you see consistently we have been able to maintain CASA percentage above 43%. As a March 25 also it is 43.65. And with growth of term deposit and retail term deposit we have increased CASA also to that extent in absolute terms also and in percentage terms also. So there is a well thought out plan and strategy for mobilizing SB deposit and CASA which is working fine as on that and the same strategy we intend to continue in this year also the plan which is there for CASA growth is around 10%.That is what we are looking at. And regarding what was your other question sir, I. I forgot
Sushil Choksey
That yeah treasury profit
Ajay Kumar Srivastava
This year looks good sir. It’s falling interest rate scenario now going forward. So I think it will give us good numbers. And the profitability and all these things of course will not be in the rest days. Whatever we are going to lose or some margin impact will be there because of report reduction. Profitability will be managed with treasury income. Of course it will be non interest. But overall profitability and income will be maintained and can be improved for. Also so looks good sir. This year sir.
Sushil Choksey
Looking good from that perspective. I understood. But this treasury harvest with you. Will you invest in corporate bonds or you utilize for growth
Ajay Kumar Srivastava
In depending on the situation, depending on the market. Because you know that it’s very dynamic market. Everything something new happens, it changes. So depending on that particular they will take it all. But of course whatever you are going to get, we are not going to keep that money idle. Of course will be. I understand if the money is not idle.I understand if the money is not idle. But as on today out of your treasury total portfolio, what would comprise of equity and corporate bonds other than PSU and Treasury government is not readily available.
Sushil Choksey
I understand if the money is not idle. But as on today out of your treasury total portfolio, what would comprise of equity and corporate bonds other than PSU and Treasury government is not readily available.
Ajay Kumar Srivastava
Sir, we will share that detail with you. We’ll send it separately.
Sushil Choksey
Okay. Second thing sir. On the CD ratio, what is your outlook?
Ajay Kumar Srivastava
We’ll try to maintain it around 80, 81%. See we are having four overseas branches. If you look at domestic CD it is on 76% only CD ratio. And global it becomes 80%. Because global there is no deposit concept. As such they don’t have any deposit. And we will try to maintain at this level. Sir will we will grow deposit and against that lending will happen. So CD ratio we will like to maintain it around 80% the same level.
Sushil Choksey
What is out? What is the outlook on NIM where global business is concerned?
Ajay Kumar Srivastava
NIM, we are looking at maintaining at around 3.50. There will be some pressure and I think around 3.5 we’ll be able to maintain at year end.
Sushil Choksey
But that is global name. Total name. I’m asking on an international book.
Ajay Kumar Srivastava
International there will be an impact of around 8 to 10 bits only.
Sushil Choksey
You are saying your name on international book would be 3.42%.
Ajay Kumar Srivastava
3.42 to 3.43 years around that. Yes, almost.
Sushil Choksey
Can I. Can I understand what product is bringing us this kind of means? On international book. International book.
Ajay Kumar Srivastava
See, international book name is low only. International book lending happens at sofr. That is not much. And that is why. That is why the global team also gets impacted. Getting impacted.
Sushil Choksey
Getting impacted. I understand. But which product is corporate lending giving you those kind of bins in international book,
Ajay Kumar Srivastava
Corporate lending, trade, finance. Wherever the opportunity to lend is there. Where money is safe and income generating capability of the unity is there, we lend including corporations.
Sushil Choksey
What is the strategy on digital spend for technology, upgradation, co lending, retail products, corporate banking. And what is. The total budget for this year and what are the new enablers which you’re trying to roll out?
Ajay Kumar Srivastava
Yes, so almost for last three years. Every year the IT budget is to the tune of 1200, 1400 crores. This year we have got a budget approved from the board amounting to 1700 crores plus. And it includes everything right from the new product. The digital initiatives, the IT infrastructure, the ATMs. The entire gamut of is getting upgraded on a regular basis. And the products and the services which we provide on digital front IT is at par with the best in the industry.
And we are not shy of investing in it. We are very aggressive. The best of the software and technology available in the market, we are onboarding. And that is how budget investment also it gets on increasing year on year. So this year it is 1700 crores plus.
Sushil Choksey
My last question to Joydeep. What are we doing in HR to make bank future ready?
Madhaw Chandra Jha
HR also I think we have launched a lot of transformation programs. So there is a lot of activities happening on the HR front. Also there’s a luxury project which has been started which is revamping the entire performance management system. Upgrading the skills, leadership development. A lot of work is going on in HR and hopefully that skill upgradation will reflect in the increasing business that is happening and the growth that the bank is showing and going forward in this year also
Sushil Choksey
What is the average age of our staff?
Madhaw Chandra Jha
It could be around 38 or 39 folks.
Sushil Choksey
30 to 39. Okay. Okay. Good luck and best wishes for the year and years to come. Thank you. Thank you for answering all my questions.
Madhaw Chandra Jha
Yes, thank you.
Operator
The next question is from the line of Ashok Achmera from AJCON Global. Please go ahead sir.
Ashok Ajmera
My one question is on the little update on the DTA test and by what time think that we may go in, I mean take advantage of all that old losses. Benefit is available and we will go to the new tax regime. Any calculation on that?
Ajay Kumar Srivastava
Yeah, calculation we have done sir. We will be maybe last quarter of this financial year. In this year we will be shifting to new tax regime. That calculation on a monthly basis we are doing and I think that will be the ideal time when we can say so.
Ashok Ajmera
The entire DBA benefit which accrues on.
Ajay Kumar Srivastava
3864 crore will be utilized in the FY26 and then we will be ready for the new tax regime. Exactly. Yes, yes, yes.
Ashok Ajmera
An1data point some information between the non interest income there is another column of again other income that is yesterday as income or something which has gone up in this quarter to 466 crore. Any major item in that or is that interest on refund or something? What is that? 466 crore miscellaneous income in non interest income.
Ajay Kumar Srivastava
PSLC Private sector lending certificate. We have sold in this. How much was that? Sir? Commission earned 287 in this quarter
Ashok Ajmera
How much was that? Sir? Commission earned
Ajay Kumar Srivastava
287 in this quarter for a year it was 431. I think around 430.
Ashok Ajmera
Okay. But those is 466 included. To coming back to that one earlier question on this that we have expanded now we started globally and we have four centers there to serve the people there down abroad. What are our basically the plan going forward on the. On the overseas book because our scale is very very small today and do we have any that kind of corporate clients here in India, you know which may require the credit down there so that we fund part of our exposure there to the Indian customers and clients.Any, any study on our overseas operation?
Ajay Kumar Srivastava
Expanding the operation there, sir. See overseas business. Overall these four overseas centers they are doing good business. They are growing around 12, 13, 14% year on year. We do not want to be very aggressive there. So the moderate growth which we are doing domestically here the same growth percentage will also be visible there. And a few of the clients of course are there not many but selected few who have taken exposure from overseas centers also.
Ashok Ajmera
All right friends. Thank you very much sir and all the best. Thank you.
Operator
Thank you. The next question is from the line of Rajkumar Vaidyanathan from RK Investments. Please go ahead.
Rajkumar Vaidyanathan
Yeah. So thanks for the follow up opportunity. So just two questions. Customers who are other operating costs have gone up, you know almost 200 crores this quarter compared to the December quarter. Is there any one off in this
Ajay Kumar Srivastava
That was. Staff provision in the first first nine months of this quarter. As per the actual valuation provision requirement. What was required? We have done more than that. So this year it was slightly adjusted accordingly this quarter.
Rajkumar Vaidyanathan
Sir, I’m talking about the other operating expenses not the employee.
Ajay Kumar Srivastava
What numbers you are talking?
Rajkumar Vaidyanathan
955 crores. This quarter we serving 753 crores. In December
Ajay Kumar Srivastava
We will get back. In fact really is not available. But other operating includes the staff expenses. And major part of this has come from that only. But we will come back to you.
Rajkumar Vaidyanathan
Okay. And answer. Did we get any gain? Because this quarter the GC games have come down significantly. So when we restated our employee liabilities and pension and other retirement benefits did we get any benefit? I mean get any one off gain?
Ajay Kumar Srivastava
No.
Rajkumar Vaidyanathan
Okay. So can we take. Because it’s a state cost. Employee cost from a line item perspective.
Ajay Kumar Srivastava
Yes, that, that. That. We will send it to you separately right now. It is not readily available with me.
Rajkumar Vaidyanathan
Okay, sir. Not a problem. Thank you so much.
Ajay Kumar Srivastava
Thank you.
Operator
Thank you. Ladies and gentlemen. As there are no further questions I would now like to hand the conference over to Mr. Ajay Kumar Srivastava MDN CEO for closing comments. Thank you. And over to you sir.
Ajay Kumar Srivastava
Yeah. Thank you. So thank you everyone for asking additional information about IOB guidance and the growth plan for next year. And some of the answers. Some of the questions which I could not answer. The numbers I could not share. My team will come back to all of you and share those numbers with all of you. And only one thing I have to tell to all who are connected here. That bank is on a growth path. Consistently bank is growing.
If you see performance of last eight quarters, consistent growth in all parameters is happening. December quarter net profit was 874 crore. That was the highest for the bank in its history. And this quarter we have gone. We have done better than that. And 1051 crores of net profit has happened. And one more thing which I would like to add here is that we added a fresh NP of 2,332 crores of NTNL. We made the 100% provision and. Despite addition of 2,332 crores of fresh NP and 100% provision also we have been able to show good growth in all parameters. The net profit has gone to 1051, the highest. The GNP has come down. The NNP has come down. All the ACO have improved. And what I’m trying to convey by conveying this is that the balance sheet they throw the bank is to that extent that 2332 crores of additional provision we have made in one shop. And still all other ratios, all numbers, everything including net profit as you can. So that is where we stand. And before closing, while thanking all of you, I request all of you to go through the bank’s performance over the last four, five, six quarters and the numbers which we have generated for this financial year. And I will say look at IOB with a positive intent and take into account the growth story of iob. Thanks a lot. Thank you everyone.
Operator
Thank you, sir. On behalf of the board of directors and the management team. We sincerely thank you for your participation and continued support. Wishing you all a successful and prosperous year ahead. On behalf of Indian Overseas bank and Veritas Reputation pr. That concludes this conference. We thank you for joining us. And you may now disconnect your lines. Thank you.