ECONOMIC AND BANKING
ENVIRONMENT
Global financial markets remain volatile exhibiting risk-off sentiment over fluctuating perceptions on the monetary policy trajectory and trade related uncertainty. The global economy is growing below its long-term average, with unpredictable financial environment loaded with uncertainties and high risks, especially in the wake of recent reciprocal tariff impositions. Intensifying downside risks dominate the outlook, amid escalating trade tensions and financial market adjustments. Taking into consideration these prevailing global economic conditions, global growth in the near term as per IMF the estimated global growth is projected to drop to 2.8% in 2025 and 3% in 2026 much below the historical 2000 to 2019 average of 3.7%.
The Indian economic outlook remains resilient supported by improved consumption demand and strong macroeconomic fundamentals. Inflation is expected to remain below the expected level. Despite global uncertainties and downward revisions in growth forecasts for other large economies, India is set to maintain its leadership in global economic growth. Supported by strong fundamentals and strategic government initiatives, the country is well-positioned to navigate the challenges ahead. With reforms in infrastructure, innovation, and financial inclusion, India continues to enhance its role as a key driver of global economic activity. The IMFs projections reaffirm Indias resilience, further solidifying its importance in shaping the global economic future.
The Banking sector in India remained resilient and stable and various key financial parameters relating to capital adequacy, asset quality, provision coverage and profitability have seen improvement. The demand for credit is seen from almost all the major sectors of the economy. The Credit offtake of the banking industry (SCBs) rose by 11.03 % year on year for the fortnight ended March 21, 2025. The Deposit too grew by 10.26 % for the same period. The credit-to-deposit ratio remains above 80%, indicating a gap between credit expansion and deposit mobilization Going forward, the banking sector may continue to face pressure on NIM due to RBIs rate cut and slow growth in low-cost CASA deposit. CASA deposit growth was muted during the last financial year 2024-25 and to match the accelerated credit growth, Banks in India raised the funds through high-cost bulk deposits and short-term borrowings. The challenge of low-cost CASA deposit mobilisation is likely to continue in the current financial year also and banks will have to depend on term deposits and other short-term borrowing avenues to meet its liquidity requirements.
Presently, more than 50 % of loan portfolio of Scheduled Commercial Banks are linked with RBIs repo rate. With the primary objective of maintaining price stability with ensuring growth, the Reserve Bank has already made rate cut of 50 bps, two tranche of 25 bps each in February and April 2025. All banks in India have already passed on the benefits of this 50-bps repo cut to all their customers whose loans are linked to repo rate. This has impacted the banks, a hit of 0.50% interest income on their repo linked loan portfolio.
Based on the current and evolving macroeconomic situation, it is expected that further one or two repo cuts are likely to happen, which may further impact the margin of the banks. In order to protect the margin, banks left with no choice but to reduce the interest rate on their deposits. NIMs are likely to stay moderate. However, the bank with higher concentration of repo linked loan portfolios may face the more stress on margin.
BACKGROUND OF THE BANK
Indian Overseas Bank (IOB) was founded on 10th February 1937 by Shri. M. Ct. M. Chidambaram Chettyar, a pioneer in many fields. IOB was one of the 14 major banks that were nationalized in 1969. On the eve of Nationalisation in 1969, IOB had 195 Branches in India with aggregate deposits of Rs.67.70 Crore and advances of Rs.44.90 Crore. Presently the Bank has its overseas presence in 4 countries: Singapore, Hongkong, Thailand and Sri Lanka.
The Bank has also sponsored Odisha Grameen Bank in Odisha.
Key Highlights :
• The Bank has completed 88 years of service excellence in Banking as on 10.02.2025.
• Bank has a strong domestic presence of 3335 Branches & 3497 ATMs/CRs and 10135 Business Correspondents provides extended reach to customers.
• 58.17% of Branches catering to the needs of Rural and Semi Urban centres enhancing deeper Financial Inclusion.
• A strong Brand name in South India especially in the State of Tamil Nadu.
• Overseas Presence with 4 Branches
• Opened 101 new Branches across the country during this Financial Year
• Sustained Growth in Low-cost CASA deposits, strong performance in Retail, Agri and MSME Segments contributing to 77.78% of Domestic Advances
Banks Operations :
• Domestic Deposits
The Banks total domestic deposits stood at Rs.3,03,415 Crores as on 31st March 2025 as against Rs. 2,78,968 Crores as on 31st March 2024. The domestic CASA has increased from Rs. 1,23,435 Crores as on 31st March 2024 to Rs.1,33,644 Crores as on 31st March 2025. It is also to mention that the domestic Savings Bank deposits have grown from Rs.1,02,328 Crores as on 31st March 2024 to Rs.1,07,661 Crores as on 31st March 2025. The domestic CASA% stands at 44.05% as of March 2025.
• Domestic Advances
With a view to diversify the risk and to improve the margins, the Bank focused more on Retail, Agri and MSME sectors during the fiscal year. The Domestic Gross Advances stood at Rs.2,33,501 Crores as on 31st March 2025 as against Rs.2,00,697 Crores as on 31st March 2024. It is noteworthy to mention that the Domestic Gross Advances have grown by 16.34%.
OVERSEAS OPERATIONS
The Bank has 5 establishments abroad, including 4 Overseas Branches, and 1 Joint Venture Subsidiary as on 31st March 2025. The Bank has one Branch each at Singapore, Hong Kong, Bangkok and Colombo. India International Bank (Malaysia) Berhad [IIBMB] - a Joint Venture of Bank of Baroda, Indian Overseas Bank and Union Bank of India - is however under process of voluntary winding up.
The Overseas Business (except JV-IIBMB) stood at Rs. 25,041 Crore as of 31st March 2025 as compared to Rs. 25,259 Crore as of 31st March 2024. Business of JV-IIBMB is ‘Nil as of 31st March 2025 due to ongoing voluntary winding up process.
TREASURY OPERATIONS
AND INVESTMENTS
Treasury Operations(Domestic)
The profit on sale of investments was at Rs. 521.83 crores during 2024-25 (Rs. 272.44 Crores during 2023-24) before accounting category transfer loss at Nil as against Rs. 256.38 crores in the previous year. As per the extant RBI Master directions on Classification, Valuation and operation of Investment portfolio of Commercial Banks, Directions 2023, Bank shall not transfer investments between categories without the prior approval of the DoS, RBI from transition date 01.04.2024. The profit on exchange from Forex business stood at Rs. 2.17 crores for FY 2024-25 as against Rs. 161.57 crores in the previous FY 2023-24. The reduction is due to premium paid on Foreign Currency Borrowing, which was swapped into rupee to fund our Domestic Operations.
Investments(Domestic)
Net investments of the Bank were at Rs. 1,07,019.14 crores as of 31st March 2025 as against Rs. 95,476.65 crores as on 31st March 2024. Total Profit including sale of securities & profit on exchange amounted to Rs. 524.00 crores during the year 2024-25 as against Rs. 434.01 crores during the year 2023-24.
10-year Benchmark yield has moved down from 7.05% to 6.58% during the year.
TREASURY OPERATIONS
AND INVESTMENTS (FOR OVERSEAS ALONE)
Treasury Operations (overseas)
The profit on sale of investments (Overseas Centres) was at Rs. 1.84 crores during 2024-25. The profit on exchange from Forex business stood at Rs. 37.10 crores as on 31.03.2025 as against Rs. 27.64 crores in the previous year.
Investments (overseas)
Net investments of the Bank (Overseas Centres) were at Rs. 4025.70 crores as of 31st March 2025. Total Profit including sale of securities & profit on exchange amounted to Rs. 38.94 crores during the year 2024-25.
MSME
To facilitate the promotion and development of Micro, Small and Medium Enterprises, the Government of India enacted THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT 2006 (MSMED ACT 2006). The Act became operational from 02.10.2006 and the new criteria was further notified vide Gazette Notification No CG-DL-E-26062020-220191 dated June 26, 2020.
RBI vide their communication letter no RBI/2020-21/10 FIDD. MSME & NFS. BC. No. 3/06.02.31/2020-21, dated 02.07.2020, advised the revised guidelines for classification of Enterprises as MSME which have come into force w.e.f. July 01, 2020. As per RBI Circular No. RBI/2021-2022/67 FIDD.MSME&NFS. BC.No.13/06.02.31 /2021-22 dated 07.07.2021, with respect to Definition of Micro, Small and Medium Enterprises Addition of Retail and Wholesale Trade, various categories of Micro, Small and Medium Enterprises are defined as under:
Investment in Plant and Machinery/
Turn Over Category Equipment Cost (WDV)
Micro Up to Rs.1.00 Crore Up to Rs.10.00 Crore Small Above Rs.1.00 Crore Above Rs.5.00 Crore & Up to Rs.10.00 & Up to Rs.50.00 Crore
Crore
Medium Above Rs. 25.00 Above Rs. 50.00 Crore & Crore & Up to Up to Rs.250.00 Crore Rs.125.00 Crore
The Investment & Turnover criteria is uniform for both Manufacturing and Service Enterprises.
Government of India vide gazette notification CG-DL-E-21032025-261838 dated 21.03.2025 has further revised the criteria for categorization of MSME which came into effect from 01.04.2025 as under:
Investment in Plant and
Category Machinery/Equipment Turn Over Cost (WDV)
Up to Rs.10.00 Micro Up to Rs.2.50 Crore
Crore
Above Rs.10.00 Above Rs.2.50 Crore Crore Small & Up to Rs.25.00 Crore & Up to Rs. 100.00
Crore
Above Rs. 25.00 Crore Above Rs.100.00 Medium & Up to Rs. 125.00 Crore & Up to Crore Rs.500.00 Crore
The Investment & Turnover criteria is uniform for both Manufacturing and Service Enterprises
MSME Performance
The share of credit to Micro, Small and Medium Enterprises stood at Rs. 44309 Crores as on 31st March 2025 registering y-o-y growth of 6.63%. Bank decided not to continue with an account with large exposure as the concessionary ROI was affecting NIM. Except the particular instance of exit, the overall growth is at par with the industry and shall reflect in subsequent quarters.
Key Points
Pradhan Mantri Mudra Yojana
Bank has achieved target under PMMY with disbursement amounting to Rs. 6778.22 Crores as on 31st March 2025 vis-a-vis target of Rs.6300 crores. Bank has sanctioned 283718 number of fresh Pradhan Mantri Mudra Yojana (PMMY) loans amounting to Rs. 6812.55 crores in FY 24-25.
Stand Up India Scheme
Bank has surpassed the stipulated target under Stand Up India Scheme with 7231 sanctions as against the target of 6614 sanctions 2767 accounts under Stand Up India Scheme were sanctioned in FY 24-25 with a sanctioned amount of Rs. 567 Crores. Outstanding as on 31.03.2025 was Rs. 628.16 Crores.
PMEGP
Bank had secured third position in the number of sanctions under PMEGP for FY 23-24. Taking cue from the same, bank has actively sanctioned applications under PMEGP and provided support to new entrepreneurs in FY 24-25. Outstanding as on 31.03.2025 under PMEGP stands at Rs. 652 Crores with 3829 sanctions amounting to project cost of Rs. 372 Crores.
IOB Pragati Scheme for Start Up Units
Launch of IOB Pragati Scheme on 16.07.2024 for providing finance to Start Up units. Loans are covered under Credit Guarantee Scheme for Start Ups up to the limit of Rs. 10 Crores by NCGTC.
The bank has opened an exclusive branch for startups in
Chennai on 06.06.2024 with a focus to increase finance to new entrepreneurs.
Loan Origination System
Department, in coordination with ITD, has successfully onboarded all major MSME schemes to LOS which ensures smooth processing of proposals, hassle free journey for loan applicants and reduced TAT.
CIBIL Triggers
Bank has tied up with CIBIL Transunion for CIBIL Triggers which is an offering from Transunion CIBIL Limited allowing us to monitor credit activities of existing MSME customers of our Bank in the industry. This initiative helps our Branches to reach out to the MSME customers who are approaching other Banks/FIs for their financial needs and take timely measures to fulfil customer requirements and strengthen relationships.
Launch of IOB E-GST Scheme
Department has launched E-GST Scheme for providing hassle free finance to applicants filing GST returns. Quantum is arrived at based on GST turnover data fetched from GST portal and bank account statement. Applicants get access to tailor made credit for their specific needs in a few clicks.
TReDS
Our bank is among the fore runners under TreDS. The bank has a robust infrastructure for invoice financing under TReDS having integration with 4 platforms viz. M1 Exchange, C2TReDS, Invoice Mart and Receivables Exchange of India (RXIL). Small suppliers for whom availability of instant working capital finance is key to smooth operations of their business, get access to readily available credit at the best rates. The outstanding under TReDS portfolio as on 31.03.2025 is Rs. 9242.50 Crores.
MSME Boost Campaign
Department launched a campaign by the name “MSME Boost” to on board new MSME customers to which the response from branches was overwhelming. The Bank canvassed Rs. 1725 Crores of fresh MSME business purely from new customers on boarded.
Cluster Based Financing
The number of clusters identified by the bank are 23 as on 31.03.2025. Bank has added 11 clusters in FY 24-25 and is continuously identifying new clusters based on geographical location of industries and feasibility.
The list of clusters as on 31.03.2025 is as under:
Name of the Cluster Scheme |
Region |
| 1. Ceramic and Plastic Industry Cluster in Morvi, Gujarat | Ahmedabad |
| 2. Textiles Industry Cluster at Coimbatore | Coimbatore |
| 3. Engineering Goods Cluster in Coimbatore | Coimbatore |
| 4. Engineering and Packaging Cluster in NCR Delhi | NCR Delhi |
| 5. Auto Components Cluster in NCR Delhi | NCR Delhi |
| 6. Auto Components Cluster in Chennai/ Kancheepuram | Chennai I, Chennai II, Kancheepuram |
| 7. Auto/Bicycle Components Cluster in Ludhiana | Ludhiana |
| 8. Hosiery /Textiles Cluster in Ludhiana | Ludhiana |
| 9. Plywood Industry Cluster in Perumbavoor, Kerala | Ernakulam |
| 10. Textile Cluster in Surat, Gujarat. | Baroda |
| 11. Textile Cluster in Tiruchengode, Tamil Nadu | Salem |
| Auto Components Cluster in Hosur and Krishnagiri, | |
| 12. | Salem |
| Tamil Nadu. | |
| 13. Alleppey and Kollam COIR Products Cluster | Trivandrum |
| 14. Baroda – Engineering Cluster | Baroda |
| 15. Baroda Chemical & Chemical Products Cluster | Baroda |
| 16. Mandi Gobindgarh, Fatehgarh Sahib Steel Re Rolling Cluster | Chandigarh |
| 17. Erode & Karur Textile and Allied Activity Cluster | Erode |
| 18. Genome Valley-Medchal/Malkajgiri Pharmaceutical Cluster | Hyderabad |
| 19. Trichy- Fabricators and Engineering Works Cluster | Trichy |
| 20. Ranipet Leather Products Cluster | Vellore |
| 21. Panipat NCR Delhi-Textile Cluster | NCR Delhi |
| 22. Ranipet -Steel Fabrication & Machinery Shop Industry Cluster | Vellore |
| 23. Automobile & Engineering Cluster Pune | Pune |
The overall feedback from our customers is positive as they enjoy various benefits viz. lower ROI and charges, reduced TAT, and uniform template-based processing of proposals due to same nature of industry in a cluster.
Guidance for FY 25-26
• Bank is actively working towards full digitalization of MSME products and implementation of STP for a few products to ensure hassle free journey for our customers and reduced TAT.
• Lodgement of bills under TReDS has been automated and the department is working towards automation of realization of bills which shall bring operational efficiency in bills processing under TReDS.
• Revised MSME definition shall be implemented in FY 24-25 which shall bring a large number of units under the ambit of MSME categorization. The same shall ensure growth in MSME portfolio, benefits passed on to our customers and achievement of PSL targets.
• Department is continuously in touch with field functionaries and ROs to identify new clusters. This approach shall expand the overall coverage under cluster-based financing and shall add many new MSME units to our portfolio by offering various cluster-based benefits.
RETAIL BANKING
The total outstanding under Retail Credit Portfolio increased from Rs 48514 crores as of March 2024 to Rs.62765 Crores as of March 2025. The Retail Credit registered Y-o-Y growth of 29.37 % during FY2024-25. The overall Retail share to domestic advances is 26.56 %.
Housing Loan Portfolio Registered Y-o-Y growth of 12.61 % during FY 2024-25. Fresh Housing loan sanctioned during review period are 20505 accounts amounting to Rs 6550.87 Crore. The total Disbursement was Rs 6419.99 Crore.
Vehicle loan portfolio has registered Y-o-Y growth of 18.29% during the FY 2024-25.Fresh loan sanctioned in the FY 2024-25 is 21939 accounts amounting to Rs 2233.79 Crore. The total Disbursement was Rs 2209.40 Crore.
Mortgage loan portfolio has registered Y-o-Y growth of 50.08% during the FY 2024-25. Fresh loan sanctioned in the FY 2024-25 was 6298 accounts amounting to Rs 2190.18 Crore. The total Disbursement was Rs 2191.63 Crore.
Personal loan has shown a growth of 29.92%. Fresh sanctions made were 29346 accounts amounting to Rs 1407.49 Crore. The total Disbursement was Rs 1404.59 Crore and Jewel loan portfolio has shown a growth of 220.22% during the FY 2024-25. Fresh sanction of 1340880 accounts amounting to Rs 20004.46 Crore were done and Rs 19952.72 Crore was disbursed.
Modification in Existing Scheme:
Based on market dynamics and feedback from field functionaries and to make our product more competitive, suitable modification were carried out in the existing Retail Products to make them more competitive product. Details of the modification done in the Retail loan products are as under:
Pension loan
In view of escalation in living cost, medical expenditures etc maximum quantum under pension loan has been increased from Rs 5.00 Lakhs to Rs 10 Lakhs to regular pensioners and the quantum of loan of Family pensioner has been increased from Rs 3.00 Lakhs to Rs 6.00 Lakhs. Further Roll over of pension loan also has been permitted.
Personal Loan
The number of Captive Branches (Situated in the premises of institutions having Banking Relationship and salary accounts of employees with us) have been increased from 195 to 206 branches and these branches have been empowered to sanction higher quantum of personal loan to the employees of such institution to increase our personal loan portfolio.
IOB Vidya Shrest Scheme
The scheme is to provide collateral free education loan for study at premier education institutes in India. Based on cost escalation of education, quantum has been revised and now students can avail collateral free loan up to Rs 40 Lakhs for study at Institutes coming under Category A and up to Rs 30 Lakhs for study at institutes under category B as against their previous limit of Rs 15 Lakhs and Rs 7.50 Lakhs respectively. However, for higher quantum above limit of Rs 150 Lakhs, the availment will be subject of offering of suitable collateral Security.
Based on National Institutional Ranking Framework (NIRF), addition to the prestigious educational institutes have been made. All new IITs, IIMs, AIIMA, NIITs have been included.
Skill Loan Scheme
A Skill Loan Scheme was launched by the Government of India in the year 2015. Recently IBA has shared revised skilled Loan scheme. The scheme covers a wide range of programs, including technical and non-technical courses, with the objective of empowering the youth with the necessary skills to improve their employability and contribute to economic growth. Quantum of loan has been increased from Rs 1.50 Lakh to Rs 7.50 Lakh to allow students to enrol for high end courses requiring more financial support. Revised scheme has been implemented in our bank during FY 2024-25.
Introduction of New Products/ Initiatives under Retail Credit Portfolio
CIC Based rate of interest
To ensure better financial discipline, increased quality of Retail Loan portfolio, CIC Based pricing on all the Retail loan products was introduced. Our bank has introduced
CIC score-based interest rates offering interest rates based on the CIC score.
PM Vidyalaxmi Scheme
“Pradhan Mantri Vidyalaxmi Scheme” (PM-Vidyalaxmi Scheme), a collateral free and guarantor free education loan scheme for study at 860 identified Educational
Institutes, identified by Ministry of Education based on their NIRF Rankings with Central Sector Interest Subvention Scheme for financial support to meritorious students has been launched ,so that financial constraints do not prevent any youth of India from pursuing quality higher education at these 860 educational institutes. The scheme has been introduced in our bank during 2024-25.
New Housing Loan Scheme - IOB
Gharonda 2.0, Under Pradhan Mantri
Awas Yojana - Urban (PMAY-U) 2.0
Pradhan Mantri Awas Yojana - Urban (PMAY-U) Scheme was launched on 25th June 2015 by the Honble Prime Minister to provide all-weather pucca houses to all eligible urban households across the nation with the vision of ‘Housing for All. Now, the government has launched Pradhan Mantri Awas Yojana - Urban 2.0 (PMAY-U 2.0) has been launched to provide assistance to 1 crore eligible urban families, thus ensuring that eligible citizens of urban India can own a house and lead a better quality of life. As per scheme, the Housing Loan up to Rs. 25 Lakhs, for property value up to Rs. 35 Lakhs, sanctioned to eligible customers, shall be covered under Interest Subsidy Scheme (ISS) w.e.f. 01.09.2024. This has been introduced in our bank as IOB GHARONDA 2.0.
New Housing Loan Scheme for EWS/LIG/ MIG Borrowers “HOUSING LOAN-ELM(U)”
The Department of Financial Services (DFS) and select member Banks along-with IBA had jointly have formulated a Home Loan scheme for facilitating Housing Loans to Individuals in the Economically Weaker Section (EWS), Low Income Group (LIG), and Middle-Income Group (MIG) categories, with regular source of income with minimal or nil documented income or income proof but have digital footprints of banking and other economic activities. Based on the above, IBA model scheme We have introduced the scheme named as HOUSING LOAN-ELM(U).
Digital Initiatives
The Bank has taken following steps towards digitalization for better customer experience:
Retail Loan Product Movement to LOS
For improvement in quality and reduction in TAT of processing of Loans we have been moving our Retail Loan products to LOS (A Digital Loan processing platform). During the FY 2024-25, we have moved the following products to LOS:
1. Subhagruha Housing Loan, Gen Next Housing Loan, Home Advantage, NRI Housing Loan, NRI Gen Next Housing Loan, Home Improvement and Home Decor under Home Loan Schemes.
2. Loan against property for Individual Customers.
3. Personal Loan Top Up online journey for customers.
4. Vehicle Loan under Online Journey for customers.
Establishment of Retail Loan Processing Centres (RLPC)
To take more benefits of digitalization of loan processing and to improve compliance and reduce TAT, Bank has established total 8 RLPC across the country, during this Financial Year 2024-25 the bank has established 7 new RLPCs
• Mumbai,
• Delhi,
• Kolkata,
• Bangalore,
• Lucknow
• Coimbatore and
• Chennai
CORPORATE CREDIT
Corporate lending plays a significant role in nation-building by providing businesses with the financial resources they need to grow, innovate, and contribute to the overall economy. It supports economic development, job creation, infrastructure development, and the creation of a more vibrant and resilient economy.
These services typically include lending, underwriting, advisory, and other financial products tailored to the needs of corporations and large businesses. With present market scenario and Banks internal risk appetite, we continue to provide thrust in expanding our exposure in capital light asset, wherein the Bank focuses mainly on AAA/AA rated accounts and PSU/ Government guaranteed exposure spread over various core industries and other segments.
Further, in order to capitalize on the ongoing demand on financial service segment, the Bank is also expanding its structural exposure in onward lending segment of Housing/ MSME/Consumer finance/Vehicle finance. Corporate lending in India has experienced significant developments, reflecting a dynamic and evolving financial landscape in respect of PLI and green shoot industry and as such, the Bank continue to contribute towards national pride projects in infrastructure/ technology. We have already floated customized loan products where ROI is linked to market rates. This helps the better rated Corporate to access credit at market determined rate.
PRIORITY SECTOR CREDIT
The average growth of four quarters for the FY 2024-25 was Rs. 1933.08 Crs and the average Outstanding stood at Rs.99706.16 Crs against the target of Rs.72494.03 Crs and the
Bank has surpassed the mandatory norms of 40% of ANBC by achieving 55.01% under Total Priority Sector Advances during FY 2024-25.
Agriculture
The average growth of four quarters for the FY 2024-25 was Rs.2131.36 Crs and the average outstanding stood at Rs. 55240.83 Crs against the target of Rs. 32622.31 Crs and the
Bank has surpassed the mandatory norms of 18% of ANBC by achieving 30.48% under Agriculture advances during FY 2024-25.
Loans to Small and Marginal farmers
The average growth of four quarters for the FY 2024-25 was Rs.1037.22 Crs and the average outstanding stood at Rs.37165.25 Crs against the target of Rs.18123.51 Crs and the
Bank has surpassed the mandatory norms of 10% of ANBC by achieving 20.51% under loans to Small/ Marginal farmers during FY 2024-25.
Loans to Non-Corporate farmers
The average growth of four quarters for the FY 2024-25 was Rs.2610.41 Crs and the average outstanding stood at Rs.54750.67 Crs against the target of Rs. 24974.19 Crs and the
Bank has surpassed the mandatory norms of 13.78% of ANBC by achieving 30.21% under loans to Non-Corporate Farmers during FY 2024-25.
Loans to Micro Enterprises
The average outstanding stood at Rs.16808.59 Crs against the target of Rs.13592.63 Crs for the FY 2024-25 and the Bank has surpassed the mandatory norms of 7.5% of ANBC by achieving 9.27% under loans to Micro Enterprises during FY 2024-25.
Loans to Weaker Section
The average growth of four quarters for the FY 2024-25 was Rs.1229.56 Crs and the average outstanding of four quarters for the FY 2024-25 stood at Rs.41588.95 Crs against the target of Rs.21748.21 Crs and the Bank has surpassed the mandatory norms of 12.00% of ANBC by achieving 22.95% under loans to Weaker Section.
Microfinance
During the year, the Bank credit-linked 78641 Self Help Groups (SHGs) with a credit outlay of Rs. 3703.74 Crs.
Specialized SHG Credit Centre
30 Branches with 5 branches in a Cluster in 19 Regions of our Bank have been formed as Special SHG Credit Centre for processing of SHG loans from nearby Branches. During the FY 2024-25, Rs.806.12 Crs to 14314 SHG groups have been disbursed by the Specialized SHG Credit Centre.
Credit flow to women
Banks credit to women stood at Rs. 53107.36 crores as of 31st March 2025 which constitutes 27.76 % of the Banks Adjusted Net Bank Credit.
Lead Bank Initiatives
The Bank has Lead Bank responsibilities in 15 districts of Tamil Nadu and 1 district in Kerala. The Bank is also the Convenor of State Level Bankers Committee (SLBC) of Tamil Nadu. During the year, as Convenor of SLBC, Tamil Nadu, the Bank has conducted four main meetings.
In addition, the Bank as convenor of SLBC, Tamil Nadu has also convened 6 Sub Committee and 4 Steering committee meetings during the year.
SLBC Initiatives for Financial Inclusion
• In the state of Tamil Nadu, 153.68 lakh PMJDY accounts are opened up to 31st March 2025. The number of Male PMJDY accounts is 62.20 lakhs and number of Female PMJDY accounts is 91.40 lakhs.
• The Aadhaar saturation for the State of Tamil Nadu is 102.12%.*
*The population of Tamil Nadu is based upon the 2011 census, whereas Aadhar saturation is based upon the current number
SLBC initiatives on Credit Flow in Tamil
Nadu
Banks in Tamil Nadu have achieved the following as of March 2025:
• CD ratio of Banks in the State continues to be above 100% and as of Mar 2025, the CD ratio stands at 126.08%.
• 45.99% under Priority Sector against the national norms of 40%.
• 24.12% of Agricultural Advances against the national norms of 18%.
• 19.45% of advances to weaker sections against the national norms of 12%.
• The Government is promoting lending to womens SHG for Financial inclusion, Entrepreneurship, Income generation, Sustainable Livelihoods, Womens empowerment and Community Development, thus contributing to the growth of the nation. Banks in the state have disbursed SHG loans to the tune of Rs.35,189.87 crores as against the Annual target of Rs.35,000 Crs for FY 2024-25.
• The Annal Ambedkar Business Champions Scheme (AABCS) loans are specifically for individuals belonging to the Scheduled Caste (SC) and Scheduled Tribe (ST) communities in Tamil Nadu, aiming to promote entrepreneurship and economic development. During FY 2024-25, as against the Annual Target of 1,000 nos. of applications amounting to Rs.114.56 crores under AABCS Scheme, Banks in State of Tamil Nadu has disbursed 1,160 nos. of loans amounting to Rs.119.18 crores, thus contributing to the upliftment of the SC/ST communities.
FINANCIAL INCLUSION
Our Bank has engaged M/s. Integra Micro Systems Pvt. Ltd., as our Technology Service Provider (TSP) and Six Corporate Business Correspondents namely
1. M/s. Integra Microsystems Pvt. Ltd.,
2. M/s. Atyati Technologies Pvt. Ltd.,
3. M/s. FIA Technology Pvt. Ltd.,
4. M/s. Starfin India Pvt. Ltd.,
5. M/s. Zero Mass Pvt. Ltd. and
6. M/s. RNFI Services Ltd.
For the management of Business Correspondent Agents (BCAs) across PAN India. Our Bank has engaged 10135 BCAs as on 31.03.2025. BCAs are engaged for opening of accounts, collection of small value deposits, enrolment of customers under Jan Suraksha Schemes like APY, PMJJBY and PMSBY, recovery in loan accounts including NPA accounts, mobilizing deposits and collecting RD instalments.
Pradhan Mantri Jan Dhan Yojana (PMJDY)
The Bank has implemented PMJDY as per the directives of Ministry of Finance, Govt. of India. The Scheme was launched by the Prime Minister of India on 15th August 2014. Our Bank has opened 8784415 PMJDY Accounts as on 31.03.2025, out of which 8365710 (95%) are operative accounts. We have issued 7797164 RuPay Debit Cards in PMJDY accounts since inception till 31st March 2025.
Aadhaar enrolment and update centres as per Aadhaar Regulations, 2016.
Our Bank has established Aadhaar Enrolment Centres (AECs) in 379 Branches all over India in line with UIDAI guidelines and engaged M/s Asuja eServ Private Limited as a vendor for outsourcing of manpower in all the Aadhaar Enrolment Centres of our Bank since November 2024.
Jan Suraksha Schemes
The Jan Suraksha Schemes were launched by the Prime Minister of India on 1st June 2015. The Bank is enrolling customers under Jan Suraksha schemes viz PMJJBY and PMSBY.
As on 31st March 2025, the enrolment counts under Jan Suraksha schemes is as below:
Schemes |
Status of enrolment as on 31st March 2025 (Cumulative) | Status of Enrolment during the FY 2024-25 |
| PMJJBY | 3782634 | 746823 |
| PMSBY | 8316697 | 1259596 |
| Total | 12099331 | 2006419 |
Atal Pension Yojana
Atal Pension Yojana (APY) is an old age income security scheme for a savings account holders in the age group of 18-40 years who is not an income tax-payee. The scheme helps in addressing the longevity risks among the workers in the unorganized sector and encourages the workers to voluntarily save for their retirement.
Performance under APY over the years is as follows
Financial Year |
Enrolments |
| 2015-16 | 18540 |
| 2016-17 | 60084 |
| 2017-18 | 111959 |
| 2018-19 | 103711 |
| 2019-20 | 150010 |
| 2020-21 | 179081 |
| 2021-22 | 232860 |
| 2022-23 | 277710 |
| 2023-24 | 261318 |
| 2024-25 | 267678 |
| Total APY Enrolments (Cumulative) | 1662951 |
Rural Self Employment Training Institutes (RSETIs)
In line with the guidelines issued by Ministry of Rural Development, Govt of India, the Bank had set up total 14 RSETIs in all Lead Districts allotted to IOB in the State of Tamil Nadu, to provide training to farmers, members of SHGs, educated unemployed youths, artisans and beneficiaries belonging to weaker sections.
The RSETIs are managed by SNEHA Trust established by the Bank. During the year under review, the RSETIs have conducted 471 training programs benefiting 14327 rural participants. Bank has achieved settlement of 78% and credit settlement of 55% which are well above the national average of 70% and 50% respectively.
Financial Literacy
Financial Literacy is imparted through Financial Literacy Centres established at 24 locations (15 in Tamil Nadu & 9 in Kerala) under Corporate Social Responsibility. The counsellors of these centres are educating the people in rural and urban areas with regard to various financial products and services available from formal financial institutions, provide face-to-face financial counselling services and offer debt counselling to indebted individuals.
They are also conducting periodical camps at various places. As on 31st March 2025, 81575 credit counselling camps have been conducted by the FLCs since inception. 17653 Financial Literacy camps were conducted on various aspects of Banking and 147341 SB accounts have been sourced and opened since inception. 5388 Special camps for newly included people in the financial system were conducted by covering 418168 beneficiaries. FLCs conducted FL sessions at 118 ITIs, 7 Vocational Training partners (VTPs) and 3 Operational Centres (OCs) and imparted Financial Literacy to 21069 Students.
Centre for Financial Literacy (CFL)
One of the milestones of the National Strategy for Financial Inclusion (NSFI: 2019-2024) is to expand the reach of CFLs to every block of the Country. RBI has allotted a total of 74 centres for CFLs to our Bank with 65 in the State of Tamil Nadu and 9 in Kerala for financial literacy through M/s Dhan Foundation (NGO).
The CFLs have been designed to raise financial awareness, promote good financial practices, and drive sustainable change in behaviour, ultimately resulting in informed financial choices and greater sense of control over ones finances. These centres use a combination of educational videos, experiential learning and financial planning tools to drive home key messages and benefits of using formal financial services. Our Banks CFLs have been committed to strengthening the financial capabilities of socially and economically disadvantaged communities and minimize every households financial vulnerability. Our Banks CFL ensure promoting better financial practices in the community, creating an enabling environment, and developing a network of trained financial inclusion experts which are crucial to driving financial inclusion to the last mile.
PERFORMANCE ON PARA-
BANKING PRODUCTS
Under Para banking business, bank has earned income of Rs.33.31 Crores during FY 2024-25 through Bancassurance & Distribution of Mutual funds. Various campaigns and drives along with Corporate Social Responsibility activities as mentioned below were conducted during the year.
• Feed for needy people in old age homes (Prathistha 4.0 Campaign).
• Roshni (Vision) to needy people (Sahara Campaign).
• Sapling plantation for every green point earned (Utkarsh Campaign).
• Free hearing aids to needy people (Shikar Campaign).
• Against the annual target of Rs.42.00 crores, we have achieved an income of Rs.33.31 crores. The achievement percentage is 79.31%. and have shown growth in all the products.
• The overall income growth YoY as on Mar 2025 when compared to the previous year is 11.25%.
• The overall income growth in business excluding HDFC Ergo stands at 17.33 % as of Mar 2025.
• Under Niva Bupa, the overall growth YoY as on Mar 2025 when compared to the previous year is 46.96%.
• Under SBIGI, the overall growth YoY as on Mar 2025 when compared to the previous year is 32.17%.
• Under LIC, the overall growth YoY as on Mar 2025 when compared to the previous year is 14.71%.
• We have grown by 5.94 % under USGIC and 9.48 % under Mutual Funds.
Product Launched during the FY 2024-25
We have introduced the following new group products during the FY 2024-25.
Niva Bupa Health Insurance
New Group Insurance Product for members of SHG SHG
Suraksha - Product for the members of SHG by providing Hospital Daily Cash benefits and Accidental death Cover for the age group of 18 to 65 Years with policy tenue of with a minimum premium of Rs.300/- inclusive of GST.
Super Top Up - Product for the new customers as well as existing policy holders by providing cover for the age group of 18-60 years in adult and child from 91-21 days. A super top-up health plan covers the total hospital bills up to the limit specified in super top-up plan above the deductible amount. Once the deductible is paid, the super top-up policy becomes active for subsequent claims.
Rise – New retail product for the bank customers by providing cover for the age group of 18-65 years in adult and child 91days - 30 years. “RISE” has been designed especially for the huge population of India in the smaller towns and locations across the country. In an era marked by dynamic lifestyles and evolving healthcare needs, the importance of access to quality health care is well understood and Rise is a manifestation of commitment to providing comprehensive and forward-thinking coverage that ensures the well-being of the masses.
New GCC – New Group Critical Care (NGCC), loan linked product providing Critical Illness and Accidental Insurance cover for borrowers in the age group of 18 to 55 Years with policy tenure of 5 years. The product has been formulated with core features of existing Group Critical Care with enhanced features. The plan intends to cover the borrowers in case of diagnosis with any of the 41 listed critical illnesses and accidental death or disability. Sum insured will be equal to the amount of loan sanctioned.
Universal Sompo General Insurance
Supreme Health Care Policy - Supreme health care policy is a comprehensive health care policy at an affordable price. It covers cost of an insured members medical and surgical expenses. If during the policy period one or more Insured Person(s) is required to be hospitalized for treatment of an illness or injury at a hospital/ day care centre, following medical advice of a duly qualified medical practitioner, the company shall indemnify, expenses towards the coverages & sum insured.
Vehicle Insurance QR Based Journey As a part of Environmental, Social and Governance (ESG) initiative a new hassle-free service for availing Vehicle insurance product was launched. QR codes not only market the services but also make operations such as claim processing easier for the customers.
SBI General Insurance
Arogya Protect – Health insurance product exclusively for the customers of our Bank by providing comprehensive health insurance plan at affordable price, which covers medical expenses in case of medical emergencies and secure coverage for proposers & their family at a flat Premium.
Campaigns conducted for Social Cause:
• NIVA BUPA PRATISHTHA CAMPAIGN 3.0 - To donate meals to needy Indians in Old Age Homes and Orphanages. Our Bank has sourced 29204 Policies with a net premium of Rs.9.73 Crores which has contributed 48641 Pledge Points and thereby donating 48641 meals for needy people.
• NIVA BUPA “SAHARA” CAMPAIGN - To donate Cataract
Surgeries and providing Roshni (Vision) to needy people. Our Bank has sourced 35720 Policies with a net premium of Rs.10.47 Crores which has contributed 8380 Pledge Points and thereby donating 838 Cataract Surgeries for needy people.
• General Insurance Campaign Utkarsh2025 Universal
Sompo General Insurance Company Ltd For every 500 green points USGI will plant 1 sapling in the name of the bank. Accordingly, for Rs.701.80 Lakh premium mobilised, 7.02 lakh green points has been sourced and 702 saplings will be planted by USGIC in the name of bank.
• General Insurance Campaign Shikhar2025 SBI General Insurance Company Ltd For every 10 Lakh Premium sourced by our bank, SBIGI Co Ltd will be providing one hearing aid in the name of the bank to the challenged & needy people. Accordingly, for Rs.370.60 Lakh premium was sourced and SBIGIC will be donating 37 hearing aid in the name of bank to the needy people.
QR Code Stand for Religious Institutions
• We are providing QR CODE stand for Temples, Churches, Mosques, and other Religious Institutions enabling the devotees to make e-offerings.
• 242 QR Code stands have been installed at various Religious Institutions during the previous FY 2024-25, which had gained wider publicity in Media and Newspapers in Regional languages.
• Rs.5.04 Crore received as offerings as on 31.03.2025 through QR Code stands installed in various Religious Institutions. The offerings received, is retained in the respective accounts.
CUSTOMER SERVICE
Bank endeavours to provide continuous services to all our customers and provides satisfactory solution to customers grievances. Bank has revamped and introduced Customer Relationship Management tool with enhanced features to provide better grievance redressal to our valued customers. Apart from this, Bank helps customers to choose right products and counsels them to take calculated financial decisions. Bank is also committed to resolve the complaints immediately and within TAT to the satisfaction of the customers.
Bank has facilitated Grievance Redressal portal through our website, Internet Banking/Mobile Banking app, contact centre, etc. Customers can lodge their complaints through any of these portals. Customers can view the status of their grievances and update any additional record sought. Customers can choose to close their complaint if they are satisfied.
Grievance Redressal Mechanism
Our Robust Grievance Redressal Mechanism strives to deliver solutions within next working day for which Bank has designed a helpdesk at Regional Offices comprising of one Grievance Redressal Officer (GRO) who is the Second Line, one RCC official for technical support and desk officer to attend customer grievances immediately. Customer Relationship Management (CRM) tool for Grievance Redressal Mechanism is enabled with all regulatory parameters. Complaint details are available on real time basis and access by various layer of offices enable effective redressal mechanism. Provision to capture customer feedback is also inbuilt in the portal on closure of complaints. Apart from Internal Grievance Redressal Mechanism and Contact Centre, Department handles complaints received from Alternate Grievance Redressal Mechanism viz Banking Ombudsman (RBI), CPGRAMS (Centralized Public Grievances Redress and Monitoring System maintained by Department of Administrative Reforms and Public Grievances), INGRAMS (Integrated Grievance Redressal Mechanism maintained by Department of Consumer Affairs).
Bank has introduced various customer friendly initiatives, to provide ease to customer experience. Some of them are listed below:
• Grievance Redressal Day: Grievance Redressal Meeting is held at branch level in PAN India on 15th of every month. Department is placing feedback and suggestions received from customers before the Customer Service Committee of the Board.
• Grievance Disposal Day: Grievance Disposal Day for Branches/ROs was introduced, and it is conducted on Third Friday of every month for speedy processing of complaints.
• Customer Relationship Management (CRM): Bank has launched CRM as part of Digital Initiative and an Integrated Complaint Management System which is a software or module used to manage and track customer complaints efficiently. This tool helps businesses receive, record, classify, and resolve customer complaints, ultimately improving customer satisfaction and understanding.
Customer Contact Centre:
• We have Contact Centre with Toll Free Services for Inbound calls related to Request, Query and Complaints with dedicated Customer Service Agents by 24X7 in all days to address/register the issues/ complaint raised by Customers on calling and provide Self Service through IVR Self Service solution. The Toll Free Numbers are 1800 890 444 & 1800 425 4445.
• New Next Gen Contact Centre transition/integration is in progress to enhance Customer experience with latest technology of AI and various Omnichannel.
• To prevent fraudulent related calls, ‘140xx & ‘1600xx Numbering Series as per RBI/TRAI guidelines:
The Reserve Bank of India vide its Circular Ref. No. RBI/2024- 25CEPD.CO.OBD.No.S1270/50-01-001/2024-25dated 17.01.2025 has issued guidelines for prevention of financial frauds perpetrated using voice calls and SMS by all the Financial Institutions. As per the guidelines, all the outbound Promotional Voice Calls should be prefixed by - 140xx numbering series and the outbound Transactional & Services Calls should be prefixed by -1600xx numbering series. As per RBI instructions this Process was to be completed on or before 31.03.2025. Bank has procured the following numbers and completed the above guidelines successfully within in the stipulated timeline. The details of the numbers procured are as follows:
1600 118 119 & 1600 318 418 for Transactional & Service Calls(60 Channels).
140 9686 440 to 140 9686 469 for Promotional Calls(30 Channels).
• To familiarize the above Outbound Numbers, Bank has sent SMS with the details of the above Numbers to all customers and posted the details in our Banks Website and in respective IOB social media.
• Contact Centre Information has been ported in our IOB website under Customer Care menu.
PSB Alliance Doorstep Banking
As per the instructions of IBA and RBI, our bank has implemented PSB alliance Doorstep banking successfully.
• Bank has secured 1st Position in Group D during the “DSB Abhiyan” campaign which was launched by PSB alliance Pvt Ltd. in June 2024.
• A column in saving bank account opening form to get consent from the customer for registration of DSB services is incorporated at the time of account opening.
• All India DSB Nationwide Digital Life Certificate campaign was conducted by PSB Alliance private Limited from 01.11.2024 to 31.12.2024. During the campaign 1399 transactions were raised successfully.
Achievement of the Department
• For the FY2024-25, the grievance disposal by the Bank was all time high. We could contain the Banking Ombudsman Chennai and INGRAMS complaints to NIL.
• All Complaints were resolved within TAT and No complaints are pending for more than 30 days.
• Bank has not received any AWARD for the FY 2024-25 from RBI- Ombudsman Office.
• The pendency of complaints is near to NIL in our Bank.
• Queue Management System was introduced in 50 (Fifty) metro Branches for enhancing customer Branch experience and for hassle free services in Branches.
• Capturing of Feedback through SMS for cash transactions on Customer experience under Reward and Motivation Program was implemented for enhancing customer service.
• Quarterly Educative Series is being issued by department, which has yielded good results. Department has already issued 20 Educative series circulars based on complaints received and Root Cause Analysis.
Details of Customer Complaints received and redressed during the year 2024-2025 is given below:
Particulars |
FY | FY |
| 2024-25 | 2023-24 | |
| Number of complaints at the beginning of the year | 2017 | 1950 |
| Number of complaints received during the year | 210075 | 257420 |
| Number of complaints resolved during the year | 209482 | 257353 |
| Number of complaints pending at the end of the year | 2610 | 2017 |
| Effective Resolution Rate | 98.77% | 99.22% |
Categories of Complaints for the year ended 31.03.2025 is as follows:
Nature of Complaints |
Total Number of complaints in all Channels | % of Total Complaints |
| NON- DIGITAL | ||
| General Banking | 5641 | 2.69 |
| Customer Service | 2471 | 1.18 |
| PMJDY | 930 | 0.44 |
| Advances | 888 | 0.42 |
| Deposits | 878 | 0.42 |
| CIC | 501 | 0.24 |
| Insurance | 496 | 0.24 |
| Pension | 185 | 0.09 |
| NRI Services | 105 | 0.05 |
| Others | 342 | 0.16 |
| Total | 12437 | 5.92 |
| DIGITAL | ||
| Non-ATM | 156450 | 74.47 |
| ATM | 41188 | 19.61 |
| Sub total | 197638 | 94.08 |
| Grand Total | 210075 | 100.00 |
CUSTOMER SERVICE
COMMITEE
The MD &CEO presides over the meetings of the committee. The committee met 4 times during the period 01.04.2024 to 31.03.2025. Number of meetings attended by each member of the committee during the year is as under:
| Tenure of membership | |||
Name of Director |
From | To | Number of Meetings Attended/ held in FY |
| 2024-25 | |||
| 1 Shri Ajay Kumar Srivastava | 01.01.2023 | Till date | 4/4 |
| 2 Shri Joydeep Dutta Roy | 31.01.2024 | Till date | 4/4 |
| 3 Shri Dhanaraj T Shri B Chandra | 10.03.2024 | Till date | 4/4 |
| 4 Reddy | 12.03.2024 | 20.12.2024 | 3/4 |
| 5 Shri Deepak Sharma | 21.12.2021 | 20.12.2024 | 3/4 |
STRESSED ASSETS MANAGEMENT DEPARTMENT
• Bank is continuously adopting various methods and recovery tools for reducing the Banks NPA portfolio and improving the profit level. Though the core objective in NPA recovery is recovery of the entire contractual dues without any hit on the profit front, in practice, due to various factors, the Bank has to shift the strategy for NPA recovery by other means including compromise settlements apart from taking other legal measures as may be warranted. Bank undertook various initiatives during the year for strengthening the recovery function and for improving the overall performance in Recovery area.
• Bank also implemented digitalization in SARFAESI, all the Demand notices, Possession Notice & Sale Notice has also been developed and implemented. Bank is also in the process of digitalization of entire recovery process (i.e.) One time settlement, NCTL, DRT, Lok Adalat, Civil Suit etc.
• During the period under review, one of the recovery tools that has worked very well is the Special OTS Schemes. The special OTS Schemes were modified in such a way that for Non NCLT accounts, powers have been given to various layers of Authorities so that the outstanding NPA A/cs could be settled in a hassle free manner without taking any long process for sanctioning of the OTS and conveying the same to the borrowers/guarantors. This scheme of Special OTS was made non-discretionary and non-discriminatory in nature.
• Total number of OTS sanctioned during the FY2024-25 was 52928 accounts for an amount of Rs.1517.47 Crs and out of this, the Bank has so far recovered an amount of Rs 818.05 Crs.
• Bank conducted E-Auctions for the properties possessed under SARFAESI Act every month till March 2025 through E-Bikray platform. Bank was able to put E auction of 4397 properties and out of this, 516 Properties were sold fetching Rs.463.77 Crores under E auction in FY 2024-25. Initiation of E auction procedure under SARFAESI had also paved the way for OTS, upgradation and full closure in many NPA accounts. In order to bring more buyers, Bank also engaged Debt Recovery Agents to mobilise bidders. Bank has made available all the eligible properties details in IOB Online where prospective buyer can search for the property details and participate in the Auctions. Bank has developed a trigger tool to generate leads from the prospective buyers who visit our website.
• The total NPA recovery done by the Bank during the FY 2024-25 was around Rs. 4013.57 Crs, the Banks focus on Recovery remains unchanged and unwavering. The Bank will continue to keep the Recovery momentum going strong in the current financial year also.
DISPOSAL OF PETITIONS
RECEIVED UNDER RTI ACT
RTI applications and appeals are handled by a separate and specialized cell called RTI Cell in the Bank. The RTI Cell is working under the control and supervision of Assistant General Manager, Law Department, who is designated as Central Public Information Officer (CPIO). Bank has also designated Regional Managers as Central Assistant Public Information Officer (CAPIO) to assist CPIO in disposing RTI applications within the prescribed time frame (i.e., 30 days from the receipt of RTI application). There are 50 CAPIOs in our Bank.
Bank has designated General Manager, Law Department as First Appellate Authority (FAA) for disposing appeals filed by the appellants who were aggrieved with the reply of CPIO and CAPIOs. Bank has received 1571 applications filed under RTI Act, 2005 for seeking information in the year 2024-25. 1557 RTI applications are duly disposed of as per the provisions of RTI
Act, 2005 by CPIO and CAPIOs.
Bank has received 263 first appeals seeking further information against the reply of CPIO and CAPIO and 262 have been duly disposed by FAA by passing appropriate order on merits and as per the provisions of RTI Act, 2005.
The appellants who were aggrieved with the reply of CPIO/ CAPIO and FAA preferred second appeal before Honourable Central Information Commission (CIC), New Delhi. Bank received 69 notices in Second Appeals filed before CIC. All the second appeals were represented by CPIO/CAPIO and were duly disposed by Information Commissioner by passing appropriate order on merits without any adverse remarks against the Bank.
RISK MANAGEMENT
Risk taking is an integral part of the banking business. Banks assume various types of risks in its activities while providing different kinds of services based on its risk appetite. Each transaction that the Bank undertakes changes the risk profile of the Bank. In the normal course of business, a bank is exposed to various risks including Credit Risk, Market Risk and Operational Risk. The objective of risk management is not to prohibit or prevent risk taking activity, but to ensure that the risks are consciously taken with full knowledge, clear purpose and understanding so that it can be measured and mitigated. With a view to managing such risks efficiently and strengthening its risk management systems, the bank has put in place various risk management measures and practices which include policies, tools, techniques, monitoring mechanism and management information systems (MIS).
The Bank, on a continuous basis, aims at enhancing and maximizing the shareholder values through achieving appropriate tradeoff between risks and returns. The Banks risk management objectives broadly cover proper identification, measurement, monitoring, control and mitigation of the risks with a view to enunciate the banks overall risk philosophy. The risk management strategy adopted by the bank is based on an understanding of risks and the level of risk appetite of the bank. Banks risk appetite is demonstrated broadly through prescription of risk limits in various policies relating to risk management. The bank has set up appropriate risk management organization structure in the bank. Risk Management Committee of the Board (RMCB), a sub-committee of Board, is constituted which is responsible for management of credit risk, market risk, operational risk and other risks in the Bank.
The bank has also constituted internal risk management committees namely Credit Risk Management Committee (CRMC) for managing credit risk, Asset Liability Management Committee (ALCO), Funds Committee for managing market risk, Operational Risk Management Committee (ORMC) and Product/Process Risk Mitigation Committee (PRMC) for managing operational risk, and Information Security Committee for managing Information security.
A full-fledged Risk Management department is functioning at the Banks Central Office, independent of the business departments for implementing best risk management systems and practices in the bank. Chief Risk Officer in the rank of General Manager of the bank is in charge of the department who is responsible for overall supervision on risk management in the bank and is the convener for all the internal risk management committees. The Mid-Office in departments/ Risk Management in particular, and other functional branches in general also carry out the risk management functions and monitor the adherence/compliance to policies, risk limit framework and internal approvals. Risk Managers have been nominated at Regional Offices to oversee the credit risk of the respective regional offices. Apart from coordinating with Risk Management Department, Central Office for submission of various MIS, they participate in Regional Level Credit Approval Committees.
The basic approach to manage risk more effectively lies with controlling the risk at the point of its origination. Basel III guidelines have been introduced from 01.04.2013, and bank is maintaining capital as per the guidelines. Minimum Capital of 9% and Capital Conservation Buffer of 2.5% with overall CRAR of 11.50% have been prescribed by RBI in their BASEL III. The Basel-III Framework is based on three mutually reinforcing pillars. While the first pillar of the revised framework addresses the minimum capital requirement for credit, market and operational risks, the second pillar of supervisory review process ensures that the bank has adequate capital to address all the risks in their business and commensurate with banks risk profile and control environment.
As per RBI Circular, the Bank has put in place a Board approved Policy on Internal Capital Adequacy Assessment Process (ICAAP) to address second pillar requirements. This policy aims at assessing all material risks to which the bank is exposed over and above the regulatory prescriptions under the first pillar risks and ensuring adequate capital structure to meet the requirements on an ongoing basis.
The bank has formulated a “Stress Testing framework” to assess the potential vulnerability of the organization to exceptional but plausible events in line with the guidelines issued by RBI on 02.12.2013. Stress testing and scenario analysis, particularly in respect of the banks material risk exposure, enable identification of potential risks inherent in a portfolio at times of economic recession and accordingly take suitable proactive steps to address the same. In accordance with the policy prescriptions and SOP Document on Stress Testing, the bank carries out various stress tests periodically on banks balance sheet and specific portfolios and places the reports to ALCO/ RMCB / Board.
Board approved Business Continuity Plan & Disaster Recovery Plan is in place. The 3-way data centres have been implemented to facilitate Zero data loss, Multiple MPLS-VPN high bandwidth connections at all 3 data Centres and Central, Dual connectivity from different alternate service/alternate providers and alternate media for branches have been established. Firewall and Intrusion detection systems have been implemented. A Security Operating Centre (SOC) has been established by the Information Security Department to monitor and analyse the information security incidents to take corrective steps, while IS Audit section takes care of the periodical Information Systems Audit of the Banks department and branches. The bank has fine-tuned the information security systems in accordance with RBI guidelines. Regular DR drills are being conducted every quarter. To ensure Network security, periodical Vulnerability assessment and Penetration testing exercise are conducted by external experts.
The Bank is also in the process of upgrading its risk management systems and procedure for migrating to the advanced approaches envisaged under Basel III framework. Reserve Bank of India has issued final guidelines on Liquidity Risk Management effective from March 2013. The guideline covers preparation and submission of consolidated bank operations including domestic operations and overseas operations separately at various frequencies. The bank has put in place system and procedure in this regard in compliance with the RBI guidelines.
RBI had introduced the Liquidity Coverage Ratio (LCR) in order to ensure short term resilience of banks to potential liquidity disruptions by ensuring that bank have sufficient high quality liquid assets (HQLA) to survive an acute stress scenario lasting for 30 days. The minimum LCR requirement set out in the RBI guidelines for the bank effective January 1, 2019 is 100%. The Bank is maintaining LCR well above the minimum prescribed levels. Bank is having enough liquidity to meet sudden cash outflows.
RBI introduced the Net Stable Funding Ratio (NSFR) in order to promote resilience of Banks over a longer-term time horizon by requiring banks to fund their activities with more stable sources of funding on an ongoing basis. The minimum NSFR requirement set out in the RBI guidelines effective October 1, 2021 is 100%. The bank is maintaining NSFR well above the minimum prescribed levels. Banks majority funding is from Retail and Small Business customers, which provide high stability with regard to stability of Funding. Bank is having enough stable sources of funding to fund their activities on an ongoing basis over a longer-term time horizon.
As per the final guidelines on IRRBB issued by RBI vide Circular issued on 17.02.2023 on Governance, Measurement and Management of Interest Rate Risk in Banking Book (IRRBB), the banks should develop their own methodologies for capital allocation, based on their risk appetite. In determining the appropriate level of capital, banks should consider both the amount and the quality of capital needed.
The bank has started computing the Interest Rate Risk in Banking Book and the potential change in Economic Value of Equity and Change in the Net Interest Income is being measured and reported to RBI also. The banks interest rate risk in banking book is well within the tolerance limit and is being monitored and managed on periodical basis.
Basel III has introduced a simple, transparent and non-risk-based leverage ratio, which is calibrated to act as a credible supplementary measure to the risk based capital requirement. Bank has been in compliance with the regulatory requirement on Leverage ratio and reporting to RBI on a quarterly basis from the quarter ending June, 2015.
Reserve Bank of India has issued guidelines on implementation of Basel III capital regulations in India to be implemented in phased manner effective from April 1, 2013 with Banks disclosing Basel III capital ratios from the quarter ending June
30, 2013. The bank is complying with the same.
The third pillar of Basel-III framework refers to market discipline. The purpose of market discipline is to complement the minimum capital requirements detailed under Pillar 1 and the supervisory review process detailed under Pillar 2. In this context and as guided by RBI a set of disclosure (both qualitative and quantitative) are published in DF 1 to 11 (annexed) with regard to risk management in the bank, which will enable market participants to assess key pieces of information on the (a) scope of application (DF-1), (b) Capital Adequacy (DF-2), (c) Credit Risk: General Disclosures for all banks (DF-3), (d) Credit Risk: Disclosures for Portfolios subject to the Standardized Approach (DF-4), (e) Credit Risk Mitigation: Disclosures for Standardized Approaches (DF-5), (f) Securitization Exposures: Disclosure for Standardized Approach (DF-6), (g) Market Risk in Trading Book (DF-7), (h) Operational Risk (DF-8), (i) Interest Rate Risk in the Banking Book (IRRBB) (DF-9), (j) General Disclosure for Exposures Related to Counter Party Credit Risk (DF-10),(k) Composition of Capital (DF (11), Summary Comparison of accounting assets vs Leverage Ratio exposure measure (DF 17) and Leverage ratio common disclosure template (DF-18). This would also provide necessary information to the market participants to evaluate the performance of the bank in various parameters.
CREDIT MONITORING
Bank has implemented various strategies for follow-up and recovery of SMA accounts and for closer monitoring of credit to ensure that slippages are kept at the minimum possible levels. Measures implemented during FY 2024-25 for effective monitoring of accounts: Bank has taken the following measures to address the potential risk of increased slippages.
• SMA and Probable Slippages Reports for the month are provided online well ahead every month and updated report is made available for follow-up by the Branches/ROs/ CO Departments on a daily basis.
• SMS Alerts are sent to SMA borrowers at regular frequencies reminding them on the repayment of overdue.
• SMA Borrowers not responding to telephonic follow-up within 15 days are followed up through personal visits.
• SMA accounts with the outstanding of Rs.50 lakhs and above are being reviewed on a monthly basis by GMs committee at C.O.
• SMA accounts of overseas Branches are also reviewed by GMs Committee on a monthly basis.
• System generated Letters to SMA borrowers (mentioning overdue and requesting early regularization) has been enabled for ROs and Branches.
• Services of an Outbound Call Centre is also engaged for follow up and recovery in SMA/Probable Slippage accounts of Retail credit and MSME. Apart from the calls Voice Blast facility is also used to send pre-recorded messages to the overdue borrowers reminding them for paying their dues at the earliest.
• Bank has launched Web App and Mobile App on 01.07.2024 and SMA accounts are being followed up by Branches/ROs through these Apps. SMA data is being updated on a daily basis for follow-up by the Branches/ROs.
Bank was able to control slippages during the FY 2024-25 by adopting the above measures and has maximized recovery and regularization of Special Mention Accounts.
LOAN REVIEW MECHANISM
• Stock Audit procedures have been strengthened for all accounts with working capital outstanding (both fund based and non-fund based) of Rs.5 crores and above. Stock Audit review notes are being placed to the GMs Committee at Central Office and observations of the Committee are being advised to RO/Branches.
• Agency for Specialized Monitoring (ASM) is allocated by
Bank for accounts wherever CCD/MSME has stipulated ASM appointment in the sanction. ASM reports are being placed to the GMs Committee at Central Office & observations of the Committee are being advised to RO/ Branches for due compliance.
• Credit Compliance Audit is conducted for accounts with an exposure of Rs.50.00 lakhs and above for domestic accounts and for accounts with exposure Rs.1.00 Crore and above for overseas accounts. Audit is carried out annually. The account is categorized as Low/Moderate/High according to the level of compliance. Corrective measures are taken account wise to strengthen compliance and to address gaps.
• Early Warning Signals (EWS): Bank has a robust EWS solution in place. The solution covers non-retail accounts with exposure of Rs. 3.00 Crores or more (both fund and non-fund based) and Retail accounts with exposure of Rs 50.00 Lakhs and above irrespective of the lending arrangement.
COMPLIANCE
Compliance: Strengthening Governance & Risk Management
Indian Overseas Bank (IOB) upholds compliance as a fundamental pillar of corporate governance and risk management. The Banks robust compliance framework, aligned with Reserve Bank of India (RBI) guidelines, ensures strict regulatory adherence and fosters a strong compliance culture. The Compliance Department, led by the Chief Compliance Officer (CCO), reports directly to the Managing Director & CEO, the Board, and the Audit Committee of the Board (ACB), ensuring stringent oversight and accountability.
Key compliance initiatives undertaken:
• “Anupalan” Mobile App Digital tool for structured compliance reporting, geo-tagged branch visits, and real-time monitoring.
• Customized E-Learning & Certification Compliance training in partnership with IIBF to enhance regulatory awareness.
• Regulatory Upskilling & Workshops Periodic sessions to strengthen staff knowledge of evolving regulations.
• Comprehensive Compliance Monitoring Tool Digital framework for regulatory change management and compliance testing.
• Knowledge Management Tool Intranet portal providing centralized access to RBI, SEBI, and other regulatory guidelines.
• New Product Monitoring – Six-month intensive compliance risk assessment for newly launched products.
• “IOB Anupalan” Compliance Magazine Dedicated publication on regulatory updates and best practices.
• Compliance Awareness Week Bank-wide initiative promoting compliance culture through training and recognition programs.
Prestigious Recognition: SKOCH Award for
Advancing Compliance Excellence
Indian Overseas Banks commitment to compliance innovation and governance excellence was recognized with the prestigious SKOCH Award. This national honor acknowledges IOBs pioneering initiatives in compliance management, risk mitigation, and digital transformation, reinforcing its leadership in regulatory adherence and compliance best practices.
INSPECTION & AUDIT
The banks Inspection and Audit Department is integral to its ongoing commitment to progress, diligently working to guarantee adherence to regulations, effective risk mitigation, and robust internal controls. For the fiscal year 2024-25, the department focused on three key objectives: firstly, verifying complete compliance with all mandates and directives issued by the Reserve Bank of India (RBI) and other relevant regulatory authorities; secondly, evaluating the strength and efficacy of the banks risk management protocols and internal control mechanisms; and thirdly, pinpointing opportunities for refinement and recommending targeted solutions to bolster the banks overall operational efficiency and success.
Highlights of major activities during FY 2024-25
Category |
Objective | Key Activities & Highlights | Impact/Significance |
| Overall Mandate | Ensure regulatory compliance, strengthen risk management, and enhance internal controls. | The Inspection and Audit Department served as a cornerstone of continuous improvement, proactively identifying areas for enhancement and reinforcing the banks operational resilience. | Contributed to a robust and compliant banking environment, safeguarding assets and bolstering stakeholder confidence. |
| Risk-Based Internal Audit (RBIA) | Comprehensive risk-based audit coverage. | 100% completion of the RBIA plan for FY 2024-25, covering all planned and approved branches by the deadline. | Ensured thorough assessment of risk profiles across the branch network, enabling timely identification and mitigation of potential vulnerabilities. |
| Offsite Monitoring Uni t (OMU) | Enhance early risk detection and mitigation. | *Significant enhancements implemented, focusing on control- oriented exception reporting. | Improved the units ability to proactively identify and address emerging risks. Enabled a more dynamic and forward-looking approach to risk management, aligning with regulatory expectations. |
| Offsite Control & Surveillance (OCAS) | Improve compliance regarding audit observation points made. | Audit package modifications were implemented to strengthen focus on key control areas. | Increased compliance with audit recommendations fostering a stronger control environment across bank operations. |
| Management Audit | Assess efficiency and effectiveness of management functions. | Management Audit conducted across a broad spectrum of functions, including 49 Regional Offices, 43 Central Office departments, 7 Nodal Audit Offices, and 1 Regional Rural Bank. | Provided valuable insights into the efficacy of management practices, enabling targeted improvements to enhance overall operational efficiency and strategic alignment. |
| Concurrent Audit | Real-time monitoring of transactions and controls within branches. | 676 branches covered under concurrent audit, representing 50% coverage in deposits and 60% in total advances. | Provided continuous monitoring of high-value transactions and key control points, enabling prompt detection and resolution of irregularities. |
| * Completion of all IS audits as per plan. | Strengthened the banks IT security posture, mitigating risks associated with cyber threats and data breaches. | ||
| IS Audit | Ensure the security, integrity, and reliability of | * Compliance with IT Examination 2023-24 observations. | Optimized governance and control over outsourced IT functions, enhancing oversight and accountability. |
| IT systems. | * Implemented the Framework for Monitoring Outsourcing Arrangements and Role of Internal Audit | ||
| IFCoFR | Ensure the adequacy and effectiveness of Internal Financial Controls over Reporting. | IFCoFR control testing at Branches, RO, CO and systems to enable Annual Certification by SCA. Sustained for 2024-25 | Strengthening of internal financial controls, ensuring the accuracy and reliability of financial reporting, and enabling a clear and transparent audit trail. |
Achievement of Internal Audit Function:
• Comprehensive Audit Coverage: Internal Audit function demonstrated a commitment to thorough audit coverage across all critical areas, ensuring robust risk management and regulatory compliance.
• Proactive Risk Management: Significant enhancements to the OMU and the introduction of OMU-PROBE reflect a proactive approach to identifying and mitigating emerging risks.
• Enhanced Control Environment: Modifications to the audit package and the successful completion of management audits underscore the banks dedication to strengthening its internal control framework.
• Technology Focus: The successful completion of IS audits and the implementation of the Framework for Monitoring Outsourcing Arrangements demonstrates a commitment to securing IT systems and data.
• Continuous Improvement: Internal Audit function has been exploring and implementing improvements to the audit processes to improve the internal controls.
VIGILANCE
With the theme of “Business First, Preventive Vigilance Always” continued during the year 2024-25, the Bank continued to take various effective steps for Preventive Vigilance and speedy disposal of Vigilance Disciplinary cases within the time schedule prescribed by Central Vigilance Commission.
Preventive Vigilance Activities
The following Preventive Vigilance initiatives were conducted during the year 2024-25:
• During the FY 2024-25, total 170 complaints received from various sources including DFS, CVC, RBI, CBI & Others. Wherever vigilance overtone observed such complaints were handled till the logical end as per the timeframe fixed by CVC and no complaint was pending more than 3 months as of now.
• Department has scrutinized 24 CTE type inspections and examined various procurement orders / service orders placed by Information Technology Department, General Administration Department and Subsidiary RRB - Odisha Gramya Bank.
• A series of thematic inspections on various matters, verification of Housing loans sanctioned during the campaign period, high advance growth branches, surprise visits by vigilance department to check the compliance level etc., during year were conducted.
• CVO/Officials of Vigilance Department have visited 6 Regions of the Bank and Odisha Gramya Bank ( OGB) during the financial year to ensure compliance to vigilance mechanism at the ground level. During the visit, CVO has sensitized the RO staff, select Branch heads and few branches over WebEx/ Video Conferencing about importance of preventive vigilance.
• During the Financial year 2024-25, as part of VAW 2024 training programme for officials across the Branches/ Regional Offices pan-India was conducted highlighting the systems/procedures and the importance of timely completion of disciplinary proceedings. Also, nominations of officials of the bank were made to different vigilance training programmes conducted by CVC/Various institutes along with few RVOs who have taken charge during the year as Regional Vigilance Officers at various Regional Offices. Total 5304 staff members were trained during the said period.
Predictive Vigilance
CO Inspection Reports, Audit reports of all the high and medium risk branches for the year 2024-25 were scrutinized on a real time basis and cognizance of incidents of Vigilance angle were brought on record for appropriate action by bank. The details of reports scrutinized are as follows:
• Scrutinized 1942 concurrent audit reports during the year 2024-25.
• Scrutinized 2520 Central Office Inspection reports during the year 2024-25.
• Scrutinized 869 Statutory Audit reports during the year 2024-25.
• During the year 2024-25 total of 28284 clearances /status given to employees for availing loans, passport, foreign visits, first line posting etc.
• 154 No. of SAC files scrutinized.
• 37 No. of Fraud files scrutinised.
Punitive Vigilance
Due to effective steps taken for disposal of disciplinary cases by the Bank, pendency in disposal of vigilance cases and non-vigilance cases reduced for the FY 2024-25. As on 31.03.2025 only 76 vigilance cases are under process at various level and out of that 41 cases charge sheet was issued and remaining 35 cases issuance of charge sheet is under process by CDAC.
Further, more than 36 months NIL case is pending . Total Suspension cases as on 31.03.2025 is 16. Also, during the FY 2024-25 total 15 cases were referred to ABBFF out of which 08 cases were taken up for deliberation and concluded.
Participative Vigilance
Commissions message on Vigilance Awareness Week “ ” / “Culture of Integrity for Nations Prosperity” has been well taken by all Branches, Regional Offices PAN India and Central Office. Vigilance Department has organized various internal and outreach activities to create awareness among our employees, customers, stakeholders, and general public about being honest and transparent. A special focus and wide publicity given on Capacity Building, Identification and Implementation of Systemic Improvement Measures, Updation of Circulars/Guidelines/Manuals, Disposal of complaint received before 30.06.2024, and Dynamic Digital presence during Campaign period. We inspired all public in general in the process of eradicating corruption and embracing Integrity.
And CVO along with Vigilance Department officials participated in a seminar/workshop on “Preventive Vigilance for Vigilance Officers of PSBs & PSUs” organized by Indian Bank on 15.09.2024 at Chennai under the directives of Central Vigilance Commission, New Delhi.
Also, CVO along with Two officials of RO, Bangalore have attended a programme “Capacity Building & Training Programme on key aspects of Preventive vigilance by Canara Bank on 18th & 19th October 2024 at Bengaluru.
Gist of Activities / Events conducted within the organization
Vigilance Awareness Week (VAW)-2024 was observed during the period from 28.10.2024 to 03.11.2024 as per the instructions and guidelines of the CVC. The following activities were conducted by the Bank during the VAW -2024.
In-House Vigilance Awareness Activities
• Mass Pledge: On 28th October 2024, Mass Pledge was taken at 11:00 AM in Central Office, Chennai, wherein Managing Director & Chief Executive Officer Shri Ajay Kumar Srivastava administered the pledge in English in presence of Executive Directors, Chief Vigilance Officer, General Managers, and other executives. Pledge in Hindi was administered by Shri. Rajeev Kumar, Chief Vigilance Officer. Similarly, all the employees of branches and administrative offices took pledge at the same time across India.
• E-Integrity Pledge: More than 24,68,999 customers have taken Integrity Pledge at the time of opening Account with us from 16th August 2024 to 15th November 2024 through our Branches across India.
• Online Quiz Contest:
• An all-India On-line quiz competition was held from 08th October 2024 to 19th October 2024 for all the staff members of the bank in the following categories:
• Executives Cadre Quiz category: All the executives of the bank of the cadre of AGM and above attached with, Branches, Regional offices and Central office were encouraged to participate in the competition.
• Supervisory Cadre Quiz Category: All the supervisory staff including probationary staff were encouraged to participate in the competition.
• Award Staff Quiz category: All the award staff of the bank were encouraged to participate in the competition.
• Best Short film/reel/videos: Staff of the bank were encouraged to prepare a short video/reel/film on the Vigilance Awareness Week 2024 theme “__ _?_ _ _ _ _
__ _ __ _” / “Culture of Integrity for Nations Prosperity”.
It was informed that the content of the audio visual should not be created with copyright content and to be created in either Hindi/English language. A total of 40 number of entries were received. The best five videos were awarded, and their content was used by the bank for promotion of the theme wherever it seems suitable/ fit.
• Online Essay Contest for Employees: From 08th October 2024 to 19th October 2024 an essay competition was conducted for all employees of the bank through Online Essay Contest portal on the theme “__ _?_ _ _ _ _ __ _
__ _” / “Culture of Integrity for Nations Prosperity”. A committee evaluated the essays submitted and participation certificates for all participants were issued. In the same manner, Odisha Gramya Bank too conducted an Essay Competition for all the staffs attached to the administrative office and all the branches of the bank. A committee headed by Chairman evaluated the participants effort and distributed the prizes to the winners.
Displaying Banners & Posters: From 28th October 2024 to 03rd November 2024, all branches, Regional Offices and Central office displayed VAW Banners at the prominent places across India. In Central Office, VAW banner was displayed at three places, i.e., Main Gate, Entrance gate of Main building, Annexe Building. One standee for each building was also displayed during VAW.
Seminar on prevention of frauds: On 29th October 2024, pan India a webinar was organized by inviting Dr. Sonal Chandra, DIG of Police, CBI, Economic Offences Branch, Chennai as Chief Guest. The Regional Heads, Regional Vigilance Officers and other staffs at Regional Offices & Branches, Pan India participated through Video Conference. Seminars and workshops were also organized during the VAW 2024 at all Regional Offices. Eminent personalities from CBI, Police etc., were invited as Chief Guest in the meeting.
Seminars and workshops were also organized at Odisha Gramya Bank with eminent persons as Chief Guest.
• Rangoli Contest on Vigilance Awareness Activities: On
29th October 2024, 54 employees of our Bank in form of 14 teams of our Bank participated in Rangoli competition on the theme “__?_?_ _ _ ?_ _ __ _ __ ” / “Culture of Integrity for Nations Prosperity” held at Central Office, Chennai.
• Publication of VAW-2024 Special Edition of IOB Vigil (Quarterly Magazine): In October 2024, Vigilance Department has published the in-house quarterly magazine “IOB Vigil” VAW-2024 special edition to create awareness regarding the preventive vigilance activities which will be helpful for all the staff members across the work profile.
Outreach Activities:
• SKY Advertisement: On 28th October 2024, Sky Advertising Balloons @ 40 Feet Height on the top of Central office, Chennai, and Staff College Chennai carrying Vigilance Awareness Week - 2024 theme and logo of IOB in Tamil and English.
• Air Advertisement: As part of the celebration of Vigilance Awareness Week, jingles on the theme of the Vigilance Awareness Week 2024 has been aired from has been aired through FM Radio Channels (Big FM, Radio City and Radio Mirchi) for 07 days (from 28.10.2024 to 03.11.2024).
• RADIO Interview of CVO: Interview of CVO having duration of 05 minutes (300 Seconds) has been aired in parts of 30 seconds each for 10 times on 02.11.2024.
• Events in Schools and Colleges: Various VAW activities across the country in 234 Schools involving 17413 Students and 60 colleges involving 4012 students participated in the Vigilance Awareness Week and took mass pledge in total. Elocution, Debate, Drawing, etc. competitions and workshops were held in these schools. Prizes were distributed for the winners.
• Awareness Gram-Sabhas: Across the country 483 Gram Sabhas involving 9294 Public was conducted during Vigilance Awareness Week and took mass pledge in total.
• Seminars/workshops: Across the country total 70 Seminars/workshops were conducted on VAW activities wherein around 3284 Public participated and took mass pledge.
• Walkathon: Metro and Non-Metro Regional Offices of Chennai in collaboration with Central office has organized a
Mega Walkathon on 26.10.2024 at Besant Nagar Beach – Chennai. The event has been flagged off by our Executive
Director in the presence of Chief Vigilance Officer, General
Managers, Deputy General Managers, Assistant General Managers, Vigilance Department Officials and other staff of Central Office and Chennai I & Chennai II Regional Offices have participated in the event enthusiastically. The event was well covered by leading print media and mass media.
Other Visible Activities Through Digital Platform
• During VAW 2024, bulk SMS was sent to 80 lakh IOB Customers containing Message “Dear Customer, Indian
Overseas Bank observes ‘Vigilance Awareness Week from
28.10.2024 to 03.11.2024. Join us to imbibe the ‘Culture of integrity for Nations Prosperity by taking Integrity Pledge at your nearest IOB Branch or visit www.iob.in or https:// pledge.cvc.nic.in.
• During Vigilance Awareness Week - 2024, 15,80,246 emails were sent to selected IOB Customers carrying CVO Message and with a hyperlink to take e-pledge.
• All the ATMs/CDMs machine of IOB Pan India were enabled to display and printing of Vigilance Awareness Week
Message “PLEASE JOIN US IN THE VIGILANCE AWARENESS WEEK 2024 CELEBRATION AND TAKE PLEDGE BY VISITING WWW.IOB.IN OR HTTPS://PLEDGE.CVC.NIC.IN”
• We have displayed the Message of Vigilance Awareness
Week 2024 in Banks Intranet Site, Internet Site www.iob.in and in Salary slips of employees through CHRIS Platform along with screen saver of all the PCs of the Bank.
• Vigilance Awareness Week message was prominently displayed in Bank official page of X (formerly Twitter), YouTube, Instagram, and Facebook.
• For the month of October 2024 and November 2024 salary slips of the employees were printed with the VAW Message
“__ _?_ _ _ _ _ __ _ __ _” / “Culture of Integrity for Nations Prosperity”. Join and take pledge @ www.iob.in.”
• Display of celebration of VAW in our webpage (Internet site and Intranet Site) wherein a hyperlink was provided for taking integrity pledge for public.
Activities conducted in Odisha Gramya Bank (OGB) Sponsored by IOB:
Mass pledge taken by 1642 employees.
• E-pledge taken by 1650 customers.
• Essay, Rangoli and quiz competition conducted and 88 employees participated.
• Activities conducted in 50 schools and 2096 students participated and took mass pledge.
• Awareness Gram Sabhas conducted in 72 villages and 1875 general public participated and took mass pledge.
DIGITAL BANKING
Digital Payments and seamless, efficient Dynamic Online solutions are the norms for customer experience and customer satisfaction in the present-day Banking services. The Bank is committed to its customers to provide the best experience through its various Digital Banking Services. The Bank has a strong network of Alternate Delivery Channels to ensure 24 * 7 availability of Banking services even when the brick-and-mortar branches remain closed.
A strong chain of ATMs & Cash Recyclers at branches and important offsites sufficiently supplemented by e-Passbook Kiosks form the core of the digital platform of the Bank. Other important and most sought-after Alternate Delivery channels include Internet Banking, Mobile Banking, NEFT, RTGS and IMPS services, Banks own BHIM IOB UPI App, PoS machines, Pre-printed QR Codes, Voice Based QR code handsets, IOB Pay, Fastag etc.
Indian Overseas Bank has been the pioneer in the Banking industry in introducing new and innovative Digital products with the objective to scale-up the business prospects of the bank through continuous digital on-boarding of customers, digitalised form of lending, Do It Yourself Journeys for opening of Accounts, sanction of Credit Cards and also for availing loans and other Para Banking services. The Bank has taken forward its on-going digital journey to new heights during FY 2024-25 to a great extent and will continue to pursue it further, in the ensuing FY 2025-26.
Summary of the various Digital Banking Products and Services offered by the Bank are as follows:
ATM, Cash Recycler and Passbook Kiosk Services of the Bank
As on 31.03.2025, the Bank has a network of 3497 Cash Management Machines, comprising of 1144 ATMs and 2353 Cash Recyclers; of which 2679 are located onsite and remaining 728 located at offsite. Out of these 3497 ATMs & CRs, 2686 are managed by Branches of the Bank while 811 are managed by ATM managed services vendors. The Bank ensures continuous availability of ATM services to customers 24 * 7 with sufficient cash in all its ATMs and Cash Recyclers.
Banks ATM & CR portfolio average uptime for 2024-25 was 96.01% ; The Bank provides continuous availability of sufficient cash in all its ATMs 24 * 7 ; and also maintains the lowest number of Cash out ATMs in the industry as per RBI norms. In the FY 2024-25, the Bank achieved ZERO Cash out ATM status during Seven out of the twelve months and in four other months, just one ATM each went Cash Out that too due to long & continuous holidays. Bank has deployed 2752 self-service e-Passbook Kiosks at branches, an increase of about 500 in total e-PBKS that were available as on 31.03.2024. The Bank has also introduced Internet Banking facility through 700 of its existing e-PBKs, across India.
Debit Cards
• Debit Card is a major tool for conducting financial transactions in ATMs, PoS machines and for online.
• To meet the vagaries of customers the Bank offers more than ten different variants under RuPay, VISA and Mastercard brands.
• Each flavour of the card is designed to meet specific customer segments. The card variants include Classic, Gold, Platinum, Signature, Select etc., All the variants are NCMC enabled NFC cards.
• Government scheme specific cards viz., PMJDY Cards, Kisan Credit Cards etc., are also offered to public.
• Both Insta Cards (without customer name) and Personalised cards (with customer name) are offered as per preference of the customers.
• Self-activation of the debit card by the customers, change PIN through Green PIN generation (for all types of cards including PMJDY, KCC, NRO, through different channels etc.,) are enabled for ease of use.
• Various self-servicing facilities like enable/disable e-com, enable/disable international transactions, setting separate card limits for different types of transactions, block debit card, are enabled for card holders through Internet Banking, Mobile Banking, IOB Website, Contact centre and Banks Branches.
• Card on File (Tokenization) is enabled.
• Cards are issued with National Common Mobility Card (NCMC) feature of RuPay for contactless transactions.
• Facility has been provided to card holders to activate the Card through Net Banking and IOB ATM.
• Green PIN is enabled for all types of A/cs including PMJDY/ KCC/NRO/NRE and INSTA card customers.
• During FY 2024-25 the Bank introduced Business Debit Cards (IOB VISA Classic & IOB VISA Platinum) aimed to meet the requirements of business and corporate customers, with scope for 200 plus business offers to customers.
• Bank issued about 58000 Co-branded Debit Cards in tie-up with Govt. of Tamilnadu under the “Tamizh Puthalvan” a social welfare scheme of TN Govt.
Mobile Banking
• IOB Mobile Banking App is one of the best user friendly and comprehensive MB Apps.
• Available in both Android and iOS devices
• Product has all the advanced features such as:
Self-registration without visiting branch.
Login using Biometric authentication/ Face recognition (IOS) for enhanced security and access.
Payee sync between Net banking and Mobile banking.
Debit card Apply, Replacement and Upgrade.
Debit card New PIN Set/ Reset PIN and change Old PIN.
ASBA IPO application View and withdraw applied IPO.
Loan repayment.
Cooling period for payee addition introduced.
Form 15G/H submission.
PMJJBY/PMSBY insurance enrolment.
mPassbook facility available to view & download account statements.
Voice assistance facility.
Deposit opening including 444 days, renewal, pre-closure and closure.
Bharat Bill Payment System (BBPS) integration.
Pay Later/Standing Instructions facility.
Mobile Banking application in 10 regional languages.
Scan & Pay Integrated with Mobile Banking.
Complaints/Fraud Reporting.
Shop at your favourite store & buy Clothing, Accessories, Furniture, Electronics & much more with added reward points.
Internet Banking
• Currently the Bank provides Internet Banking through its in-house platform.
• Major features are Balance Enquiry, Transaction details, Funds Transfer using NEFT/RTGS/IMPS etc, Online Tax and Utility Payments Bill Payments, Top Up of Prepaid Cards, and Credit Card Payments.
• Internet Banking application available 10 regional languages.
• Facility to avail Demand Loan against Deposit.
• Foreign Outward Remittance to Singapore enabled in Internet Banking.
• Open PPF account without stepping into Branch.
• Online registration and self-activation through Debit Card (Retail).
• Opening/Closure/Renewal of Deposits.
• Block/Unblock/Upgrade/ Set Green PIN/Change Limits of your Debit Card.
• Apply/View for Govt Schemes viz NPS, SGB, PPF etc.
• Apply for IPO (Initial Public Offering) both for retail and corporate.
• Download e-Statement, Deposit/Loan Interest Certificates etc.
• Enable / Disable AEPS.
• Funds Transfer to VAN ID (My Account My Name ID) through Net Banking.
• During the ensuing FY 2024-25 the Bank will be migrating to new Internet Banking platform enabled by M/s Edgeverve through Digital Engagement Hub which will enhance the Online Banking experience of customers.
BHIM IOB UPI
• The Bank Introduced its BHIM IOB UPI App in the year 2016.
• The Bank launched BHIM IOB UPI (with UPI 1.0 in 2017 and UPI 2.0 in 2021).
• In the FY 2023-24 the Bank introduced UPI LITE App as integral part of BHIM IOB UPI App ; using the UPI Lite App, customers can make faster payment up to Rs.500 can be made without UPI PIN.
• Revamped BHIM IOB UPI application launched in April 2024 with simplified User Interface and enhanced digital experience.
• Make payment using UPI ID, Account number and IFSC and by scanning any QR code.
• Pay to any mobile Number with UPI Number functionality.
• Use Request Money feature for collecting payments.
• Create UPI mandate for recurring payments.
• Set/Reset UPI PIN using Debit Card or Aadhaar card.
• Self-Transfer facility in case of multiple accounts.
• Add Payee for faster payment.
• Launched multi-lingual Soundbox facility and IOB UPI Vyapar application in 2023 for simplifying merchants day-to-day activity.
• We have introduced UPI Lite for low value transactions & central mapper.
RTGS/NEFT
• Available for Customer and Inter Bank transactions.
• Customers can avail NEFT channels through Mobile Banking and NEFT and RTGS through Internet Banking.
• NEFT & RTGS channels functioning 24 X 7.
• NEFT Charges are waived for NEFT transactions initiated through online mode (viz internet banking and mobile banking) for savings account customer.
IOB PAY
• It is an integrated online payment system which offers fee payments, merchant payments, donations for charitable institutions etc. It is an easy and effective way of collecting payments for the merchant customers of our Bank.
• Services provided through in house developed product with integrated Aggregators/Directly through PG Aggregators.
• Bank has recently empaneled 10 (ten) number of PG Aggregators through EOI process for providing payment gateway to merchant customers of our bank. This will help Bank to provide industry standard payment gateway solutions to corporate merchants with website/without website and also by providing customized mobile applications/ERPs etc.
• 1078 merchants have been onboarded for IOB Pay as on 31.03.2025 and during FY 2024-25 about 25 Top Notch Government Departments and Public Sector Undertakings have been onboarded for IOB Pay by the Bank, across different states of the country.
• The Bank also provides various other Digital Banking Payment Solutions viz., Point of Sales Machines (PoS), QR Code enabled Payments through Ready to use QR codes to new customers, Voice Message Based QR Code handsets etc., IOB Fastag for prepaid stickers for highway Toll charges payment etc.
TAB BANKING
The bank has been steadfast on its commitment towards enhancing any-time, any-where inclusive service delivery. Towards the same, the bank has invested significantly on availability of Tab banking gadgets with Aadhaar Face Authentication and Aadhaar Fingerprint Authentication across each of its branches and the service offerings via this marquee channel has been enhanced with an array of services such that over twenty-five most sought after banking services like Account opening, Re-KYC, Nomination registration, Jan Suraksha policy issuance, Activation of dormant accounts, Fixed Deposit account opening, Digital banking channel enrolment can be rendered instantly to customers by branches. The availability of face authentication on this channel facilitates all our customers including those with smudged fingerprints, senior citizens having difficulties to authenticate via fingerprint to seamlessly authenticate using face and avail benefit of our digital services without any barriers in a contact-less way. As on 31.03.2025, Bank has 4080 TAB devices covering the entire branch network across the nation.
COVETED ACHIEVEMENTS BY BANK ON THE TECHNOLOGY FRONT, IN FY 2024-25:
In recognition of the Banks leaping strides of development in the Technology and Digital areas, our Bank has once again won the prestigious IBA BANKING TECHNOLOGY AWRDS for the year 2024, in FIVE Categories out of the Seven categories in which these awards are being given by IBA. i) Best Bank in Tech Talent & Organization (Winners) ii) Best Bank in Financial Inclusion (Runners up) iii) Best Bank in IT Risk Management (Special Mention) iv) Best Technology Bank (Special Mention) and v) Best Bank in AI & ML Adoption (Special Mention) The Awards were presented to the MD & CEO of the Bank by Shri Rabi Shankar, Honble Deputy Governor of Reserve Bank of India on 24.01.2025 in the 20th Annual IBA Banking Technology Conclave organized by Indian Banks Association in Mumbai.
It is pertinent to mention that in the FY 2023-24 also our Bank had bagged FIVE IBA Banking Technology Awards.
Way Forward
The new FY 2025-26 will begin with the launch of a new Internet Banking Solution from Digital Engagement Hub platform and also a new state of the art Mobile Banking Application during May 2025.
The Bank plans to move to a robust new UPI Switch that will have high upscaling capabilities through open market selection of the service provider. In the first two quarters 600 Cash Recyclers and 400 Cash Dispensers will be rolled out across all geographies of India, which will reduce the issuer expenses of the Bank on ATM transactions and will also improve the acquirer income.
Two New variants of MasterCard brand of Debit Cards will be launched in FY 2025-26 to give 360-degree options to customers to choose from, multiple variants of debit cards of Visa, RuPay and Mastercard.
Our Bank always cares for the physically challenged customers and as a major initiative the bank will introduce “Debit cards to visually challenged customers” in FY 2025-26. In addition to this eco-friendly debit cards will also be introduced by the Bank in the new FY.
Bank is also onboarding a travel and lifestyle Aggregator merchant shortly. Bank also plans to roll out a comprehensive pre-paid card solution, wherein Prepaid cards can be issued for transit purpose with NFC enablement, to customers with NIL KYC, minimum KYC and full KYC.
Under its IT initiatives the Bank has expanded its capacity on storage, networking, infrastructure areas. Various monitoring and performance enhancement tools have been procured by the Bank. In the year 2024-25 the Bank has commenced its iconic project of CBS Tech-Refresh which includes major revamp in CBS infrastructure, CBS software and also upgrading to higher version of Finacle (10.2.25) of M/s Infosys. This project will be completed in the FY 2025-26.
Out of the total IT budget of the Bank for FY 2025-26, a substantial portion has been earmarked for providing seamless experience in Digital payment solutions and Digitalisation of various Branch products. Another major project embarked upon by the Bank on digital front is introduction of the Central
Bank Digital Currency (CBDC) which will be achieved during FY 2025-26. As the digital experience should go with the confidence and faith of customers in doing digital transactions continuous R&D in the digital banking security will be carried out and necessary capital and revenue investments will be made in this regard as well.
MANAGEMENT INFORMATION SYSTEM
Bank has implemented a robust Management Information System (MIS) and Decision Support System to handle Reporting and analytical requirements of the Bank apart from ensuring flow of data to User Departments for submission of various statutory and ad-hoc reports.
Oracle Analytic Server (OAS), an analytical tool deployed by the bank provides around 300 reports, Data Mining and analytics accessed by Top Management, Controlling Offices and Branches through our intranet IOBONLINE.
The tool has been utilized by the In-house team of MIS for development and deployment of Dashboards, Reports and analytics based on user requirements. The tool is effectively used for various purposes such as Performance Monitoring, Regulatory Reporting, Analysis of historical data, Follow up of campaigns etc.
Some of the major activities of MIS are furnished below:
MISD Activities
• Business Intelligence Reports Development.
• Data Submission for RBI Inspection.
• Data Submission for Statutory Audits.
• SLBC Reports Automation.
• CIBIL, NESL Development and Modifications.
• CRILC Data Submission.
• IOB Data Design Portal Maintenance.
• RBI MDA Data Submission.
• AML Reports.
• Data Submission for EASE.
• RBI CIMS Automation.
• Data submission for analytics.
• Tranche Reports.
• HRMD Portal Data submission.
• Data Submission to User Depts for onward submission to RBI, DFS.
Enterprise Data Management Department
Bank has formed a new EDM department which will be responsible for identifying the relevant and best data management practices and providing related methodologies for the implementation of the initiatives. It will also be responsible to govern/facilitate the adoption and implementation of data management standards across the Bank.
EDMDs role function will be to ensure that the data present in Source Systems is Accurate, and the reports are Consistent. Bank has framed a Data Governance Policy.
This objective of the Policy is to clearly define the following as a framework:
• Policy Ownership.
• Organization Structure, roles, and responsibilities for Data Governance.
• Data Identification and Ownership
The Data Governance policy also consists of the Data Classification, Data Identification & Ownership, Master Data Management, Data Life-Cycle Management, Data Quality Management, Data Profiling and the Data Cleansing Mechanism.
INFORMATION SECURITY DEPARTMENT
• Board approved Information Security Policy, Cyber Security
Policy, Digital Payment Security Control Policy, Technology Risk Management Policy, Cyber Crisis Management Plan, Business Continuity Plan and Disaster Recovery plan is in place.
• Banks Information Security Department is certified with ISO 27001:2022 which is a recognition for following the information security best practices.
• Bank has achieved PCI-DSS 4.0 certification. PCI DSS stands for Payment Card Industry Data Security Standard. It is a set of security standards designed to protect the payment card data of cardholders and ensure the secure handling of cardholder information by organizations that process, store, or transmit payment card data.
• A Security Operation Centre (SOC) operates 24*7*365 days to monitor and analyze the information security incidents to take preventive and corrective steps with the state of art security technologies.
• Regular DR drills are being conducted every quarter to ensure availability.
• Bank has disseminated security awareness through educative series in Banks website, internal circulars, posters, SMSs, messages through ATM Kiosk, Internet Banking, Mobile Banking and Social Media Handles (Facebook, twitter etc.) for the benefit of customers. Employees and vendors.
• Bank has also uploaded cyber security awareness videos in Banks website, social media accounts such as Facebook, twitter, YouTube etc., to create awareness among customer, employees, and vendors.
• Bank has conducted Cyber Security awareness training to all the staff members and third-party service providers.
• Bank has a contingency plan with approved BCP/DR to ensure continuity of services.
• Bank has implemented defense in depth at different layers to secure Banks IT environment.
GOVERNMENT ACCOUNTS
Direct Tax Collections
The Bank is authorized to collect Income Tax and other Direct taxes. Direct tax collection is enabled in internet banking and over the counter in all branches. During the year, the bank has handled transactions amounting to Rs.13585.08 crore and earned commission of Rs.1.10 crore.
Indirect Tax Collections
The Bank is authorized to receive e-payment of Excise and Service Tax, E-payment of Customs Duty and e-refunds of Duty Drawback. After the introduction of GST, all our branches have been enabled for collection of GST. During the year, Bank has handled transactions amounting to Rs.17142.87 crore and earned commission of Rs.0.99 crore.
Payment of Pension
• Bank is serving pensioners belonging to Central Civil, Defence, Railways, Telecom, State Civil, TNEB, Chennai Port Trust, Local Fund Audit of Tamil Nadu and Malaysian Government Pension
• Among the above, our Centralized Pension Processing Centre (CPPC), disburses pension for departments of Central Govt, such as Civil, Defence, Railway, Telecom and Postal Pensioners wherein the total number of pension accounts is 32907 as on 31.03.2025. Bank has disbursed about Rs.1288.32 crore of such pension during the year and received reimbursement within 2-3 days from the date of disbursement. In this regard, during the year bank has earned commission of Rs.3.46 crores.
Other treasuries / Services handled
Bank also handles Treasury Business of the Government of Tamil Nadu and collection of various State Revenues. Bank has collected a state revenue of Rs.5556.55 Cr during the year 2024-25. Bank serves the account of Planning Commission and Department of Telecommunications and handled receipts and payments totalling Rs.331.70 Crore. Post Office Collection (Drawing and Deposit) Account is maintained at 90 branches in Tamil Nadu handling receipts and payments of Rs.567.57 crore.
Small Savings Schemes
Bank has been actively participating in the Government of India Small Savings Schemes like Senior Citizens Savings Scheme 2004, Public Provident Fund, Sukanya Samriddhi Yojana and Mahila Samman Savings Certificate, 2023 schemes and have contributed subscriptions of about Rs.1676.56 crore.
National Pension System
All our Bank Branches have been enabled for subscription of NPS. During the FY 2024-25 we have implemented instant PRAN generation module. With the introduction of instant PRAN generation module, our bank has enrolled 12402 NPS (NPS & NPS Vatsalya) during FY 2024-25 and surpassed the NPS target of 5000 allotted by PFRDA.
Our bank has achieved 100% and 131% target allotted by PFRDA in Game changers campaign (18.11.2024 to 23.12.2024) and Final Frontier campaign (14.01.2025 to 31.03.2025) respectively. Govt of India has launched NPS Vatsalya scheme on 18th September 2024 and our bank have opened 2845 NPS Vatsalya during the year.
Government Business Cell
Bank has set up 22 Government Business Cell in all major state capital during the FY 2024-25 with an aim to garner more government business. During the FY 2024-25 GBC teams have canvassed a Govt Business of Rs.2772 Cr.
HUMAN RESOURCE
DEVELOPMENT
Recruitment & Staff strength
The Banks staff strength stood at 20966 Comprising 12494
Officers, 6992 Customer Service Associates and 1480 Office
Assistants as of 31st March, 2025.
During the year 2024 - 2025, 287 Probationary Officers and 33 Specialist Officers in JMG Scale I, have joined the services of our Bank through IBPS Common Recruitment Process (CRP) XIII. Also, 05 Specialist officers in MMG Scale II, 03 Specialist Officers in MMG Scale III have joined the services of our Bank. Of the total staff strength, 4091 members belonged to SC category, 1549 to ST Category, and 7048 to OBC Category. Staff Strength includes 7638 Women employees, 768 Ex-servicemen and 484 physically challenged members.
Motivation
Employee Day
Employees are the first and foremost assets of our Bank and Bank always believes in continuous motivation to gain confidence of employees.
Our employees have always displayed impeccable commitment and dedication to our esteemed organization, at all times, and conducting “EMPLOYEE DAY” is one way of actively involving all our employees, knowing and resolving their issues and grievances, making them feel appreciated for their professional as well as personal achievements, and thereby, re-instilling a sense of belongingness and ensuring that they propel towards higher levels of performance. Every 3rd Saturday of the month is celebrated as Employee Day across the country.
ASK US
We have always been proactive in providing our employees with ample learning opportunities and the “ASK US Online Help Desk” is one such initiative introduced by our Bank.
It is a Real Time Online Platform provided for our staff members for clarifying their banking related doubts, become more confident in discharging their day to day duties and thereby, render efficient customer service. Our Banks endeavour and approach towards training and developing our employees has always been to improve on the current processes, build capacity in the bank to offer better banking service by addressing the knowledge gap, by providing staff members with ample learning opportunities.
All Regional Offices and CO Departments have Resource Persons from their respective workplace. These Resource persons will in turn help the staff members in clarifying their doubts on a real time basis.
Project Lakshya HR Transformation
• Indian Overseas Bank has started its flagship digital HR transformation project “LAKSHYA” with the objective to align with industry trends and enhance performance of employees.
“Lakshya” is designed to serve as an ideal substitute for the traditional APAR system, offering in-depth insights and comprehensive evaluations of officers performance on a monthly, quarterly, and annual basis across all levels.
The solutions introduced under this initiative are expected to promote:
• Greater transparency
• Enhanced efficiency
• Optimal resource utilization
• Increased productivity
The digital transformation of Human Resource (HR) functions in IOB marks a critical step toward enhancing efficiency, transparency, and employee satisfaction. Leveraging modern tools and technologies, HR departments are reshaping how performance is managed, roles are defined, and employees are motivated. Fifteen key tools play a pivotal role in this transformation: Scientific Target Setting, Role Clarity, Monthly Scorecards highlighting area of strength & areas of concerns, Performance Dashboards, Quarterly appraisals, Employee engagement initiatives, and reward and recognition mechanisms are the major highlights of this project.
Quarterly appraisals further strengthen the performance management cycle. By shifting from annual to more frequent reviews, feedback becomes more relevant and actionable.
This approach also enables faster course corrections and continuous development. Moreover, employee engagement initiatives, supported by digital tools like pulse surveys and virtual meetings with field functionaries, create a two-way communication channel, ensuring employees feel heard, valued, and connected to the banks mission.
In conclusion, the integration of these digital tools in our Banks HR systems not only improves performance management but also fosters a more engaged, productive, and satisfied workforce. This holistic approach will help our bank to remain competitive, agile, and future-ready.
Capacity Building
In order to plan the succession and equip the identified officers for identified critical positions, Bank has drawn a Policy on “Capacity Building” in tune with RBI guidelines to enhance the knowledge of the staff members. Staff members have been advised to obtain certifications in those areas to enhance their capability.
As a part of motivational measure, Bank is reimbursing the course fees for the identified certifications under capacity building and also giving due weightage for the same in the Promotion process.
Ethics Policy
Ethics policy is in place covering all the employees of the Bank, to create a culture of cooperation among the employees in respect of public conduct, communications with the Bank, interactions with external entities including the media and dealing with colleagues. The policy defines the standards of the conduct that is expected of all employees in order that the right decisions are taken in performing roles and responsibilities across various functions in the Bank.
For implementation of the said policy, a Standard Operating Procedure (SOP) has been adopted wherein online affirmation from all the employees confirming adherence to the code of conduct as detailed in the Ethics policy is obtained on annual basis.
Job Family
Job Family framework for Officers is in place which comprises of 14 families. The same was arrived after grouping similar nature of tasks/ business vertical and related Depts./ cells/ areas etc. under one family as part of HR Transformation project.
All Officers having exposure/ working in the related depts./ business verticals and having requisite qualifications in the areas falling under the Job Families have been grouped/ classified.
Training
Keeping in view of the corporate goal and making the bank a customer centric one, training has been imparted on contemporary issues of banking apart from basic areas of banking through the internal and external mode. Apart from the above, regular training on Banking topics have been imparted to officers and clerks in the field of Credit Appraisal/ Credit Monitoring, Small & Medium Enterprises Financing, Vigilance. Also Programmes for First Line and Second Line Managers were conducted for all staff members through offline modes.
Pre-Promotion Training for SC/ST/OBC/PH members who are eligible for promotion from Office Assistant(Sub Staff) to Clerical cadre, Customer Service Associates(Clerical Cadre) to JMGS I, JMGS I to MMGS II and MMGS II to MMGS III was conducted through online mode.
The Pre-Retirement counselling programme was conducted for Officers and Clerks who retired during the year.
Internal Training
Our Banks internal training system comprises of One Staff College and Twelve Staff Training Centres (STCs). The statistics of Internal Trainings imparted for the FY 2024 25 is furnished hereunder:
Particulars |
Training imparted to Individual staff members (irrespective of no. of trainings attended) | Training imparted during FY 2024-25 (based on total no. of trainings attended by members) |
| Officers | 8,697 | 13,256 |
| Clerical | 4,852 | 6,451 |
| Sub Staff | 547 | 607 |
| Total | 14,096 | 20,314 |
| SC (out of total) | 2,798 | 4,128 |
| ST (out of total) | 1,142 | 1,728 |
External Training
We had also deputed 1806 Executives/Officers/Clerical for training programmes conducted by reputed external institutes like IDRBT Hyderabad, NIBM Pune, ASCI-Hyderabad, CAB Pune, RBI, Wrights Training and Consulting LLP, State Bank Institute of Leadership (SBIL), NAMCABS, IIBM-Guwahati, Industrial Management Academy, CAFRAL Mumbai, FEDAI Mumbai, IBA, IIBF, NIBSCOM, BIRD-Lucknow, ISTM Delhi, AJNIFM. Apart from the general and subject concerned training programs, Bank has also conducted special training programs, FAB 50 and FAB 50 Plus for the 88 top performers and Super 88 campaign winners program for 178 top performers of the campaigns to encourage the top performers. 50 Executives/Officers have been trained on various Leadership Development Training Programs by reputed training institutes like IDBRT, CAFRAL- Mumbai, ISB Hyderabad, RBI etc.
• E-Paatashala Online e-Learning portal
E-Paatashala was made available for all the staff members in our Banks online module consisting of 82 modules on various areas like Credit, NPA, Treasury, Foreign Exchange etc., during the FY 2024 - 25. These modules were targeted at enhancing and updating the knowledge of the staff members thereby scaling up our online learning initiative (E-Paatashala). The said portal was updated and maintained by our Staff College Faculty on a regular basis. A total of 8571 employees completed all SIX Mandatory modules (out of 82 available modules) under E-Paatashala.
• Standard Employee Grievance Redressal System (SEGRS)
To have a formalized grievance redressal mechanism for our staff members, a Standard Employee Grievance Redressal System (SEGRS) online portal is made available to lodge the grievances of our staff members. The Grievances/Complaint Main areas are grouped in various categories related to Facilities, Behaviour, Allowances etc. These grievances will be redressed at two levels - Regional Office and Central Office. The complaints will be escalated to the next level on a time bound basis and redressed accordingly.
INDUSTRIAL RELATIONS
The Industrial relations environment in the Bank remained cordial and conducive throughout the year for achieving organizations objectives.
To monitor and maintain good Industrial Relations climate in all Offices/Branches of the Bank, circulars/ guidelines are issued from time to time regarding enforcement of discipline and the guidelines / policies to be followed, etc.
Action is taken against staff members against whom complaints/ matters of IR nature are reported to enforce discipline and harmonious industrial relations in the Bank.
Disciplinary action is initiated against staff members who remain on unauthorized absence. Further, all the guidelines issued by the Ministry of Finance and Indian Banks Association with regard to staff matters are implemented expeditiously by issuing circulars for the benefit of our employees. HRMD-IR Section, Central Office holds discussions with Officer Association / Workmen Union for redressal of grievances of staff members regarding staff benefits / IR issues etc. During the financial year, considering the roles and responsibilities undertaken by Branch Managers, additional monetary benefit of Rs.3000/- per month has been paid to them with effect from November 2024.
Relief Loan was sanctioned to staff members who were affected by the floods in the States of Andhra Pradesh and Telangana. Similarly, Relief Loan was sanctioned to staff members who were affected by Cyclonic Storm “FENGAL” and the resultant floods in the State of Tamil Nadu and Union Territory of Puducherry.
Improvements were made in availment of Festival Advance by staff members with the introduction of Straight Through Processing which facilitated instant credit of advance amount, subject to members fulfilling the stipulated guidelines. Similarly, reimbursement of monthly expenses viz., Conveyance
& Newspaper etc. was made through Straight Through Processing. We obtain statement from all staff members regarding their ‘Movable, Immovable and valuable properties as at the end of March every year. For the year ended 31.03.2024, most of the staff members have submitted their returns.
To prevent Sexual Harassment of Women at Workplace, Internal complaints committees were constituted at all administrative offices (Central / Regional offices) as per the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013.
The details of the Sexual Harassment Complaints received and disposed during the year 2024 2025 is as follows:
| Complaints pending at the beginning of the year (01.04.2024) | 5 |
| Complaints received during the year 2024-25 | 2 |
| Complaints disposed off during the year | 6 |
| Complaints pending as at the end of the year (31.03.2025) | 1 |
Industrial Disputes / Court Cases filed by staff members before various Courts including those before Assistant Labour Commissioner are reviewed by the Bank at Apex level as per Ministry of Finance guidelines and efforts are taken to settle/ get the Court cases disposed of expeditiously.
CONDUCT AND DISCIPLINARY ACTION CELL
Disciplinary Proceedings
During the Financial Year 2024-2025, a dedicated Disciplinary Authority Cell (DA Cell) headed by a DGM has been formed at
Central Office to handle the cases involving officials up to the
Grade MMG III for speedy disposal. To Speed up the enquiry proceedings, Enquiry Cell has been formed at Seven Nodal Audit Offices with an AGM as Inquiring Authority and a Chief Manager as Presenting Officer exclusively for conducting enquiry for disciplinary cases of CDAC, IR Cell of Central Office and all Regional Offices.
During the FY 2024-25, Department had issued 487 new Charge Sheets, however disposed 685 cases. (357 cases disposed in the previous FY 2024). The number of pending Disciplinary Cases under Vigilance category has been brought down to 76 as of March 2025 against 163 vigilance cases pending as of March 2024. Likewise non-vigilance cases brought down to 90 against 107 as on 31.03.2024. The department has taken necessary steps to conclude the disciplinary cases within the stipulated time prescribed by the CVC, with more emphasis on case related to suspended members. Department has been reviewed by a GM Committee on monthly basis and by the top management on quarterly basis, which enabled them to dispose of the cases within TAT.
COMPOSITION OF SC/ST/OBC EMPLOYEES IN
INDIAN OVERSEAS BANK
Category of posts |
Total No. of employees As on 31.03.2025 | No of SCs | % of SCs | No of STs | % of STs | No of OBCs | % of OBCs | No of Gen | % of Gen |
| Officers | 12494 | 2129 | 17.04 | 1152 | 9.22 | 4071 | 32.58 | 5142 | 41.16 |
| Customer | |||||||||
| Service | 6992 | 1383 | 19.78 | 349 | 4.99 | 2488 | 35.58 | 2772 | 39.65 |
| Associate Office | 1359 | 527 | 38.78 | 45 | 3.31 | 441 | 32.45 | 346 | 25.46 |
| Assistant Sweeper | 121 | 52 | 42.98 | 3 | 2.48 | 48 | 39.67 | 18 | 14.88 |
| Total | 20966 | 4091 | 19.51 | 1549 | 7.39 | 7048 | 33.62 | 8278 | 39.48 |
Rosters
As per Ministry guidelines, recruitment and promotion rosters are maintained at Head Office to ensure adequate representation of SC/ST/OBC/EWS employees. Inspection of Rosters is carried out on a regular basis. Roster Register for the Calendar year 2023 have been verified by Ministry of Finance, Department of Financial Services, New Delhi and have been uploaded online in our IOB website (www.iob.in).
Trainings
Pre-Promotion trainings are conducted for SC/ST/OBC & PwBD employees before the commencement of the promotion examinations. CLOs & Office Bearers of SC/ST & OBC welfare Associations were imparted training on Reservation norms, Rosters and other Govt. guidelines.
Welfare of SC/ST/PwBD/ Ex-Servicemen Employees
The Reservation Policy for SC/ST/PwBD/Ex- Serviceman which are applicable for banks under Government of India is also applicable to Indian Overseas Bank. As stipulated by the DFS guidelines, Reservation Cell is functioning under the direct control of Chief Liaison officer which ensures the implementation of the rules of Reservation. The Cell takes care of the grievances of SC/ST/OBC/Ex-Servicemen/Differently abled Persons.
Quarterly meeting with the majority Welfare Association is held at regular intervals in order to resolve issues related to grievances/service matter/welfare of our SC/ST Employees.
Welfare of OBC Employees
The Reservation Policy for OBCs which are applicable for Banks under Government of India are also applicable to Indian Overseas Bank. Bank is having Reservation Cell at Central Office, which is under the direct supervision of Chief Liaison Officer. The Chief Liaison Officer through the Reservation Cell ensures that the Government guidelines are implemented in the Bank.
Half yearly meeting with the majority Welfare Association is held at regular intervals in order to resolve issues related to grievances/service matter/welfare of our OBC Employees.
Loan Facilities for SCs/STs Beneficiaries
Our Bank has Schemes like CEGSSC and Stand-up India for welfare and upliftment of the Scheduled Castes & Scheduled
Tribes and all other credit facilities of our Bank cater to the needs of all classes of society including Scheduled Castes & Scheduled Tribes.
CEGSSC (Credit Enhancement Guarantee Scheme for Scheduled Castes): provides Guarantee cover to Scheduled Caste borrowers for the loans up to Rupees Five Crores.
Stand up India: Provides Guarantee cover to Scheduled Caste/ Scheduled Tribe & Women borrowers for the loans from Rs. 10 lacs to Rs. 1 Crore.
SECURITY
Security is an ongoing process and the Department is ensuring for preventive security measures always. Thus Safety, Security and precautionary measures, as and where required, mandated and suggested have been reviewed, studied and implemented for all Branches, ATMs and Administrative Offices keeping in view the local law and order situation, crime rate and modus operandi of the crimes against Banks.
The Bank continued to stress on preventive measures for security and fire safety arrangements and inculcation of fire prevention and security consciousness among staff to ensure safety to life and property. Portable fire extinguishers for fighting all classes of fire have been provided at Branches and
Administrative Offices. CCTV systems have been provided for all Branches. All Staff members have been educated regarding security awareness. It is ensured that security gadgets viz., CCTV and Burglar Alarm system are installed and functioning 24x7x365 days.
Integrated Alarm system and outsourced Watchmen / Armed Guards are provided at vulnerable ATMs and branches, on case to case basis. Most of the Currency Chests have been sanctioned outsourced fortified cash vans with two armed guards for safe transporting of cash and the performance of Cash Van is reviewed by Security Department at Central Office. RSOs (Regional Security Officers) are deployed in 36 Regions and the remaining Regions, not posted with RSOs, are assigned to RSOs of adjacent Region for monitoring of security aspects. Security Department at Central Office headed by Chief Security
Officer is responsible for overall supervision of security aspects of all Branches, ATMs, Currency Chests and administrative offices.
OFFICIAL LANGUAGE
The Bank has taken all efforts to implement the Official Language Policy of Government of India during the FY 2024-25.
Also, the Bank has committed to achieve all the goals of the Annual Program formulated by the Official Language Department, Ministry of Home Affairs, Government of India. As per the directives of Government of India, Bank has enabled Hindi Unicode font in all the computers of Administrative Offices and as well as all the Branches. Four editions of our in-house Hindi Magazine “VANI” in print as well as in digital form, have been published. The Bank has conducted All India Official Language Conference and Seminar for our Official Language Officers on 28th and 29th May 2024 at Staff College, Chennai. The said program was chaired by our MD & CEO and Ms. Anshuli Arya, Secretary, Ministry of Home Affairs, Govt. of India has also attended as a chief guest. Regional Offices, who have done excellent work in the field of Official Language implementation were rewarded under the Rajbhasha Shield Scheme. Also, the Regional Offices whose publication of E-Magazine was excellent were rewarded in the said conference.
Bank has organized one day Hindi training program on the subject of “ __ 2.0 ( _ __ ___ _) ___R _ _ ” at Puri (Orrisa) on 19th June 2024. Staff of Member Offices of TOLIC, Puri and our staff members were participated in the aforesaid program. The said program was chaired by our MD & CEO and Ms. Meenakshi Joly, Joint Secretary, Ministry of Home Affairs, Govt. of India has also attended as a chief guest. Also, 1227 Staff members possessing working knowledge of Hindi were trained in General Hindi Workshops held during the year. Our Bank has received the First Prize of ‘Rajbhasha Kirti Puraskar the most prestigious award for PSBs towards implementation of Official Language for the Financial Year 2023-24 handed over by the Honble Shri. Amit Shah Ji, Minister of Home Affairs, Government of India, and it was received by our MD&CEO, Shri Ajay Kumar Srivastava. Also, at the 4th All India Official Language Conference on 15th September 2024 held at Bharat Mandapam, New Delhi, organized by Ministry of Home Affairs, our MD & CEO addressed 10,000 participants on the subject of "_ __ _ _? __ _?_ _ ___ G__ _?_ _ __ _?_ ___ G__ _ _ _ _ _R __” Also, our Central Office has secured Second Prize towards the implementation of Official Language from TOLIC, Chennai for FY 2023-24. Our Regional Office Goa has secured 3rd Prize from Regional Implementation Office, Govt. of India for Official Language Implementation for the FY 2023-24. We are pleased to mention that our 40 Regional Offices along with Branches have received awards from respective TOLICs. Till now, this number is highest ever in the any FY for TOLIC prizes. Our 27 Regional Offices were inspected in connection with Official Language implementation by Official Language Department, Central Office. Third Sub-Committee of Parliamentary Committee on Official Language has conducted inspection of Regional Office Hyderabad on 23rd October 2024. The said committee expressed satisfaction over the implementation of Official Language in the said centre.
The Bank has conducted Hindi competitions in all Regional Offices and Central Office on the occasion of Hindi Day Celebrations. An All-India Hindi Essay Writing competition was held on 18th September 2024 for our staff members. The Bank has also conducted inter-bank All-India Hindi Essay Writing competition in December 2024 for the staff members of all Public Sector Banks, FIs and Insurance Companies. Award winning articles of the said competition have been compiled and published in a book form as “?__ _ _ __ -3”. We have also published ‘____ _ _ book, from these book staff members may learn basic Hindi through 19 scheduled languages. The said book was inaugurated by Central Home & Cooperation Minister Honble Shri. Amit Shah Ji on 14th September 2024 during the 4rth All India Official Language Conference & Hindi Day at Bharat Mandapam, New Delhi.
Also, our Official Language Department has published ‘ _
_ ____ and ‘ __ _ R _ _ _ _ R _ ____ ___ book for enriching the knowledge of our staff members, the said books were released by our MD & CEO on 25th September 2024 on occasion of prize distribution ceremony of Hindi Day Celebrations. On 10th January 2025, World Hindi Day was observed in Central Office and Regional Offices. On this occasion various Hindi competitions, seminars and workshops were held in Regional Offices. Various Hindi competitions were conducted by Regional Offices on Banks 89th Foundation Day celebrations on 10th February 2025. Bank has observed International Mother Language Day on 21st February 2025, on that day various Hindi competitions and seminar conducted by Regional Offices.
Our Bank has introduced cash incentive scheme for staff members, who are doing excellent implementation of Official Language in January 2021. Under this scheme, staff members who have excelled in the Official Language are being given an incentive of Rs. 1,000 and there is a provision to confer certificate to 12 staff members from central office and 3 staff members from each Regional Office & 6 staff members from Branches coming under their jurisdiction of respective ROs during every half year. During the FY 2024-25, a total of 701 staff members were awarded with cash incentive and certificates under this scheme.
STATUS OF IMPLEMENTATION OF IND AS IN OUR BANK
As per RBI guidelines, the Bank is in the process of implementing Ind AS (Indian Accounting Standards).
RBI vide circular DBR.BP.BC.No.29/21.07.001/2018-19 dated 22nd March 2019 has deferred implementation of Ind AS for all Scheduled Commercial Banks till further notice.
However, RBI requires all Banks to submit Ind AS Proforma Financial Statements every half year. As per RBI directive, a Project Steering Committee headed by Executive Director has been formed for monitoring Implementation of Ind AS in the Bank.
Bank is submitting Ind AS Proforma Financial Statements to RBI on half yearly basis regularly after approval of Project Steering Committee.
PSBS REFORM AGENDA EASE ENHANCED ACCESS & SERVICE EXCELLENCE
EASE 7.0: Driving Excellence in Public Sector
Banking
The Enhanced Access & Service Excellence (EASE) Reforms
Agenda, launched by the Department of Financial Services (DFS) under the guidance of the Indian Banks Association (IBA), continues to be a transformative force in modernizing Public Sector Banks (PSBs). The EASE 7.0 framework introduced for FY 2024-25 with the theme: Economic Development : Customer Delight : Resilient Banking EASE 7.0 focuses on five key themes with 21 Action Points
• Banking Towards ‘Viksit Bharat Aligning banking with national priorities.
• Excellence in Customer Service Enhancing service quality and experience.
• Adoption of New-age Technology – Advancing digital capabilities, automation, and analytics.
• Effective Risk & Fraud Management Strengthening governance, fraud detection, and recovery strategies.
• Developing Employees for Emerging Banking Priorities
Upskilling workforce for future-ready banking. Indian Overseas Bank has demonstrated consistent progress in the EASE Reforms Index, showcasing its commitment to operational excellence, digital transformation, and customer-centric banking. The Bank has proactively implemented strategic initiatives to drive improvements in customer experience, governance frameworks, risk management, and service delivery, aligning itself with the evolving needs of the banking sector.
Through these concerted efforts, IOB continues to strengthen its position as a leading public sector bank committed to innovation, resilience, and superior service standards.
PLANNING & ECONOMIC
DESK
The Planning function continues to derive a synchronised coordination between Top Management and Field Level functionary for effective implementation of the corporate policies, Banks priorities and ensuring achievement of corporate budget.
The Economic Desk supplements Top Management with day-to-day developments in the Financial Ecosystem apart from analysing the policy and products of other peer banks along with close monitoring of RBI policies & other regulatory guidelines.
Customer Onboarding
During the Financial Year 2024-25, we have successfully onboarded 39.97 Lakhs CASA customers, of which 11.16 Lakhs customers were onboarded through our TAB devices. Bank is striving to continue the same momentum of customer onboarding for this Financial Year as well.
New Developments
Keeping in view the demand and requirements of branches and in line with the offerings of other banks in the market and to make our product more competitive, we have gathered inputs and made suitable modifications and introduced and revamped liability schemes in order to make them move in the market as a competitive product.
IOB Startup Current Account
Indian Startups have transitioned from being primarily service-oriented to becoming leaders in product innovation demonstrating their technological skills across various sectors. As Indian Startups are expected to become key drivers of growth, they need designated/ exclusively start up branches and customized products for their start up business growth.
Accordingly, to cater the needs of the startups and to support the startup customers, we have introduced IOB STARTUP Current Account scheme.
Aadhar Based Term Deposit
• With an aim to simplify and standardize the term deposit opening process while providing a seamless experience to customers, we have introduced Aadhar based term deposit opening.
• Staff can access the opening of term deposit facility by logging into Tab Banking facility and provide an efficient and customer friendly banking experience.
IOB Insta Digital Saving Account
As part of our ongoing digital transformation efforts, we have launched IOB INSTA DIGITAL savings account. Account can be opened by NTB (New-to bank) Customers through E-KYC ( Aadhar based OTP). The scheme enables NTB (New-to bank) Customers to open accounts conveniently through our banks web portal using Aadhar Based OTP Authentication.
Non-Callable Term Deposit
In order to mobilize a reliable source of funding for the bank and to maintain a good Asset Liability Management system, we have introduced Non Callable Term Deposit under Retail Term Deposit segment from 91 days to less than 2 years period (except 444 days bucket). Deposit is available in Reinvestment Deposit plan (RDP) and Short Deposit Receipts (SDR) plan with a minimum deposit amount of Rs. 1,00,01,000/- (Rs. One Crore and one thousand only).
Ultra HNI Scheme
• To meet the needs and expectations of the HNI customers, to comply with EASE norms and to be in line with the changing industry trends, we have introduced ULTRA HNI SB schemes (3 variants)
• The product provides customers with Personal accidental insurance coverage up to Rs. 110.00 lakhs, concession in processing charges for various loan products, free debit card and a bundle of attractive features.
PUBLIC RELATIONS DEPARTMENT
Press Release and Electronic Media Interaction
The Department in coordination with M/s. Veritas Reputation PR Private Limited from 01st March 2024 disseminated 49 Standalone press releases and conducted 12 electronic media interactions garnered around 1600+ coverages across the media.
Media Coverage:
Particulars |
|
| Print Media | 736 |
| Online Media | 886 |
| Electronic Media | 12 |
| Total | 1,634 |
Advertisement, Publicity, And Other
Activities
The Bank has utilized various platform for Advertisement and Publicity, including Print, Online Advertisement, FM Radio, Chennai Metro Train, Chennai MTC Bus Branding, Kolkata Bus Branding, Hoarding and paid campaigns in social media. During the fiscal year, Bank has spent Rs. 1,46,80,308.26 on Advertisement (Regulatory) and Rs. 5,23,60,014.29 on Advertisement (Non-Regulatory) & Publicity.
As directed by DFS, the following activities were organized centrally by the Bank:
• 19th April 2024 - Voters Outreach and Awareness programmes conducted in coordination with all the Regional Offices for creating awareness about the importance of voting for the ongoing 18th Lok Sabha Elections from 19th April 2024 to 1st June 2024 by sending banners, conducting seminars, Forums etc., Department also Showcased sky advertising balloons by creating awareness about voting in three places 1) Central Office, 2) Staff College and 3) Purasawalkam Branch.
• 21st June 2024 - International Yoga Day Demonstration at Loyola College, Chennai, our MD & CEO along with ED(JDR) & ED(DT) and TOP Executives were present during the yoga demonstration.
• 09th August 2024 – Har Ghar Tiranga Celebrations
(09.08.2024 to 15.08.2024) encouraging all for hoisting flags in their house to bring the Tiranga, provided Flags with sticks to GMs, HODs and DGMs.
• 12th August 2024 – “Viksit Bharat ka Mantra, Desh ho Nashe se Swatantra”, Pledge administered by MD & CEO and TOP Executives has participated.
• 14th August 2024 – Partition Horrors Remembrance Day –
Stall containing photos of Partition Horrors are showcased to Public at T Nagar Branch
• 15th August 2024 – 78th Independence Day Celebrated at our Central Office and across Regional Offices. Top Management, Executives and Staff Members attended the flag hoisting ceremony at the Central Office.
• 29th August 2024 FIT India Pledge as commemorating the National Sports Week (26.08.2024 to 31.08.2024) has been administered by MD & CEO and TOP Executives has participated.
• 31st August 2024 Closing Ceremony of the National
Sports Week held at our Central Office where prize and certificates were distributed by HRMD Sports wing.
• 17th September 2024 – “Swachhata Hi Seva campaign” from 17.09.2024 to 02.10.2024 with the theme “Swabhav Swatchhata- Sanakaar Swachhata” in the cleanliness Drive organised at Besant Nagar Elliots Beach, our MD & CEO along with EDs and Executives have participated in cleaning the beach and Donated 2 battery operated vehicle to Chennai Corporation for using it for carrying the garbages.
• 01st October 2024 “Blood Donation Day” pledge has been administered by MD & CEO along with EDs and General Managers/HODs and Blood Donation camp has been organized in collaboration with M/s Kavery Hospitals Chennai around 72 units blood has donated and instructed Regional Offices for organizing the blood donation camps in their respective regions.
• 26th October 2024 “Vigilance Awareness Week” Integrity Pledge had administered by MD & CEO along with EDs, CVO and General Managers/HODs and Walkathon held at Besant Nagar Elliots where our Top Executives and Staff from Central office, Chennai I & Chennai II Regional Office had participated and to symbolize our commitment to a corruption free environment Sky Balloons put at Central Office and in Staff Training College, Thirumangalam,
Chennai and they also released balloons in the sky to “let the Corruption go away!!”.
• 26th November 2024 - Constitutional Day Pledge administered by MD & CEO to symbolize our unity and democracy.
• 26th January 2025 - Bank celebrated 76th Republic Day at our Central Office and across Regional Offices. Top Management, Executives and Staff Members attended the unfurling ceremony at the Central Office.
• 10th February 2025 - “ParikshaPeCharcha2025”, showcased PMs speech to School Students PAN India
• 08th March 2025 - International Womens Day celebrated across all Branches/ Regional office and Central office PAN India.
Bank hosted/participated in the following
Parliamentary (Lok Sabha & Rajya Sabha) Committee Meetings held during the FY 2024-25
• 31st August 2024 - Study visit of the Committee on Government Assurances, Rajya Sabha at Chennai.
• 25th October 2024 - Study visit of Department - Related Parliamentary Standing Committee on Industry at Goa.
• 12th November 2024 - Study Tour of the Standing
Committee on Finance (2024-25) at Chennai.
• 17th January 2025 - Standing Committee on Rural Development on Rural Development and Panchayati Raj at
Chennai.
• 24th January 2025 - Study Visit of the Department Related Parliamentary Standing Committee on Health and Family
Welfare at Goa.
Social Media
• The Banks official Social Media platform was effectively used to enhance the Banks brand image of the Bank. A dedicated social media team has been formed to further enhance and build our Brand Image.
• As of March 31, 2025, our subscribers count on YouTube –
8,42,294, Facebook 3,52,958, Instagram 2,73,139, X (Formerly Twitter) 56,914 and LinkedIn 41,039 & Treads
– 12,933 totaling 15,79,277 subscribers.
• Additionally, we are committed to regularly updating our social media channels with posts about our products and services, educating our customers and staff and significantly boosting our banks marketing visibility.
• During FY 2024-25, 794 posters/flyers/videos posted on social media and 348 customer complaints received through social media were meticulously attended and resolved within 48 hours.
Corporate Social Responsibility
During FY 2024-25, the Bank spent a total of Rs. 3.76 Crores on Corporate Social Responsibility (CSR), benefitting about 22,90,325 beneficiaries.
Corporate Social Responsibility (CSR) spent by Bank for the FY 2024 - 25
Category |
Sanctioned Amount | Beneficiaries | ||||
| (Exclusive of GST in lakhs) | ST | SC | OBC | General | Total | |
| 1 Education | 43.43 | 23752 | 50162 | 108273 | 81804 | 263991 |
| 2 Empowerment of women & Senior Citizen | 11.84 | 520 | 1122 | 2398 | 1789 | 5827 |
| 3 Environmental Protection and Social cause | 68.68 | 70658 | 149201 | 321975 | 243366 | 785201 |
| 4 Healthcare and Sanitation | 109.24 | 30018 | 63384 | 136784 | 103389 | 333575 |
| 5 Protection of Tradition & Heritage | 65.89 | 75199 | 158764 | 342604 | 259009 | 835576 |
| 6 Rural Welfare Initiatives and Disaster Management | 33.91 | 1165 | 1731 | 3736 | 2803 | 9435 |
| 7 Skill Training / Apprenticeship Training & Skill Development | 5.00 | 4050 | 8550 | 18450 | 13950 | 45000 |
| 8 Sports | 29.00 | 882 | 1868 | 4032 | 3039 | 9821 |
| 9 Technology and Research | 5.00 | 88 | 186 | 402 | 304 | 980 |
| 10 War Veterans and Charity | 4.42 | 82 | 176 | 388 | 273 | 919 |
| Grand Total | 376.41 | 206415 | 435144 | 939040 | 709726 | 2290325 |
OUTLOOK FOR BANKING SECTOR
Going forward, the banking sector may continue to face pressure on NIM due to RBIs rate cut and slow growth in low-cost CASA deposit. CASA deposit growth was muted during the last financial year 2024-25 and to match the accelerated credit growth, Banks in India raised the funds through high-cost bulk deposits and short-term borrowings. The challenge of low-cost CASA deposit mobilisation is likely to continue in the current financial year also and banks will have to depend on term deposits and other short-term borrowing avenues to meet its liquidity requirements.
Presently, more than 50 % of loan portfolio of Scheduled Commercial Banks are linked with RBIs repo rate. With the primary objective of maintaining price stability with ensuring growth, the Reserve Bank has already made rate cut of 50 bps, two tranche of 25 bps each in February and April 2025. All banks in India have already passed on the benefits of this 50 bps repo cut to all their customers whose loans are linked to repo rate. This has impacted the banks, a hit of 0.50% interest income on their repo linked loan portfolio.
Based on the current and evolving macroeconomic situation, it is expected that further one or two repo cuts are likely to happen, which may further impact the margin of the banks. In order to protect the margin, banks left with no choice but to reduce the interest rate on their deposits. NIMs are likely to stay moderate. However, the bank with higher concentration of repo linked loan portfolios may face the more stress on margin.
INTERNAL CONTROL SYSTEM
The Bank has laid down a system of internal financial controls with reference to its financial statements. The integrity and reliability of the internal control systems are achieved through clear policies and procedures, process automation, training and development of employees, and an organisation structure that segregates responsibilities. These controls are reviewed and tested by the internal audit team to ensure the accuracy and completeness of the accounting records and the preparation of reliable financial statements. The internal financial controls of the Bank with respect to the financial statements are adequate and are operating effectively.
DIRECTORS RESPONSIBILITY STATEMENT
Please refer to page no 398 for Directors Responsibility Statement.
KEY FINANCIAL RATIOS
| Ratio | 2024-25 | 2023-24 |
| 1 Return on Equity | 16.28 | 16.24 |
| 2 Return on Assets | 0.92 | 0.81 |
| 3 Cost to Income | 47.14 | 56.32 |
| 4 Capital Adequacy | 19.74 | 17.28 |
| 5 Debt Equity Ratio | 1.66 | 1.46 |
| 6 Operating Profit Margin | 25.80 | 22.77 |
| 7 Net Profit Margin | 9.90 | 8.94 |
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+91 9892691696
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