ECONOMIC AND BANKING ENVIRONMENT
FY 2025-26 witnessed a challenging global economic environment marked by geopolitical tensions, supply chain disruptions, commodity price volatility, trade-related uncertainties, and evolving monetary policy actions across major economies. Global financial markets remained volatile amid periodic risk-off sentiment and capital flow adjustments. According to the latest projections of the International Monetary Fund, global growth is projected at 3.1% in 2026 and 3.2% in 2027, remaining below the historical average.
Amidst these global uncertainties, India continued to remain one of the fastest-growing major economies, supported by strong domestic consumption, sustained investment, infrastructure development, structural reforms, and healthy macroeconomic fundamentals. As per the latest estimates of the Reserve Bank of India, Indias real GDP growth for FY 2025-26 is estimated at 7.6%. Inflation remained broadly contained, and in its latest monetary policy review, the Reserve Bank maintained the policy repo rate at 5.25% with a neutral policy stance, balancing growth and price stability.
The Indian banking sector continued to demonstrate resilience, supported by strong capitalization, improved asset quality, healthy profitability, and robust credit demand. As of March 2026, Scheduled Commercial Banks reported
CRAR of 17.68%, Gross NPA of 1.73%, Net NPA of 0.40%, RoA of 1.33%, and NIM of 3.26%.
Among Public Sector Banks, financial parameters also remained robust as of March 2026, with Gross NPA at 1.93%, Net NPA at 0.39%, Return on Assets (RoA) at 1.10%, and Net Interest Margin (NIM) at 2.84%, reflecting sustained improvement in asset quality, profitability, and operational efficiency.
As per latest data, Bank credit growth remained healthy at 13.8% year-on-year while aggregate deposits grew by 10.8% year-on-year reflecting sustained demand across key sectors of the economy. However, the industry continued to face competitive pressures in mobilization of low-cost CASA deposits and moderation in margins due to transmission of policy rate changes.
Banking Sector Outlook
The outlook for the Indian banking sector remains positive, supported by strong macroeconomic fundamentals, healthy corporate and retail balance sheets, sustained infrastructure spending, rising formalization of the economy, and continued policy support. Credit demand is expected to remain healthy across retail, agriculture, MSME, infrastructure, and services sectors, driven by economic growth and increasing financial inclusion.
At the same time, banks may continue to face near-term challenges arising from repricing of repo-linked loan portfolios, competitive deposit mobilization, moderate CASA growth, and pressure on Net Interest Margins. Banks are expected to focus on granular deposit mobilization, digital banking, operational efficiency, diversified loan portfolios, and prudent risk management to sustain profitability and growth.
With strong capital buffers, improved asset quality, healthy profitability, adequate liquidity, accelerated digital adoption, and continued regulatory oversight by the Reserve Bank of India, the Indian banking sector remains well-positioned to support the countrys long-term economic aspirations and create sustainable value in the years ahead.
BACKGROUND OF THE BANK
Indian Overseas Bank was founded on 10th February 1937 by Shri M. Ct. M. Chidambaram Chettiar, a pioneer in banking and commerce. The Bank was one of the 14 major banks nationalized in 1969. On the eve of nationalization, the Bank had 195 branches in India with aggregate deposits of Rs.67.70 crore and advances of Rs.44.90 crore. Presently, the Bank has overseas presence in Singapore, Hong Kong, Thailand, and Sri Lanka.
The Bank has also sponsored Odisha Grameen Bank in Odisha.
Key Highlights
The Bank completed 89 years of dedicated service in banking as on 10.02.2026.
The Bank has a strong domestic presence of 3,494 branches, 3,651 ATM/CRMs, and 12,187 Business Correspondents, providing extended customer reach across the country.
About 58% of branches cater to Rural and Semi-Urban centres, reinforcing the Banks commitment towards financial inclusion.
The Bank continues to enjoy a strong brand franchise in South India, particularly in Tamil Nadu.
The Bank has overseas presence in 4 countries through its overseas branches.
During FY 2025-26, the Bank net added 159 new branches and added 3 Regional Offices, significantly strengthening its distribution network.
The Bank added over 42 lakh new CASA accounts during the year, mobilizing over Rs.14,000 crore CASA deposits.
The Bank continued its strategic focus on Retail, Agriculture and MSME (RAM) segments, which contributed 78.93% of advances as on March 31, 2026.
Banks Operations
Domestic Deposits
The Banks total domestic deposits stood at Rs.3,59,032 crore as on 31st March 2026 as against Rs.3,03,415 crore as on 31st March 2025, registering a healthy growth of 18.33%. Domestic CASA deposits increased from Rs.1,33,644 crore to Rs.1,48,841 crore, registering a growth of 11.37%. It is noteworthy that Savings Bank deposits grew by 15.26% from Rs.1,07,661 crore to Rs.1,24,089 crore during the year, reflecting the Banks strong retail liability franchise. Retail Term Deposits also recorded strong growth of 17.81%, increasing from Rs.1,55,846 crore to Rs.1,83,601 crore. The Bank maintained a healthy Domestic CASA ratio of 41.46% as on March 31, 2026.
Domestic Advances
With a continued focus on portfolio diversification, granular lending, and margin improvement, the Bank further strengthened its presence in Retail, Agriculture, and MSME sectors during FY 2025-26. The Banks Domestic Gross Advances stood at Rs.2,94,405 crore as on 31st March 2026 as against Rs.2,33,501 crore as on 31st March 2025, registering a robust growth of 26.08%.
Within the RAM portfolio, Retail Advances grew by 45.13% to Rs.91,086 crore, Agriculture Advances by 39.27% to Rs.1,03,821 crore, and MSME Advances by 13.08% to Rs.50,107 crore. The Banks Core MSME portfolio registered strong growth of 23.77%, increasing from Rs.33,085 crore as on 31st March 2025 to Rs.40,951 crore as on 31st March 2026, reflecting the Banks continued focus on productive and priority sector lending. The Banks RAM portfolio contributed 78.93% of advances as against 72.64% in the previous year, reflecting continued focus on diversified, granular, and sustainable credit growth.
LEAP CELL
Project LEAP (Liabilities Enhancement Action Program)
The Bank launched Project LEAP on 7th July 2025 with the objective of deepening and strengthening its CASA base by engaging both Existing-to-Bank (ETB) and New-to-Bank
(NTB) customers and fostering a customer-centric, service-oriented relationship model. The key initiatives undertaken under the project include CASA Win-back, TASC (Trusts, Associations, Societies and Clubs), EXIM (Export-Import), Micro-market, and Lead and Succeed.
Project LEAP has made a meaningful contribution to the Banks CASA portfolio and overall business growth, while also creating a strong foundation for further expansion and sustained momentum.
CASA Win-back Initiative
The CASA Win-back Initiative was launched to reconnect with customers, particularly those holding active, non-corporate, non-government, and non-staff accounts, whose Monthly Average Balance (MAB) had declined by more than 25% over a specified period.
The initiative now covers 3,243 branches, with Customer Relationship Officers designated at each branch to engage with customers, address service deficiencies, and ensure prompt resolution of grievances. The program was rolled out in Waves 1 to 5, with progressive inclusion of additional branches and the introduction of a Voice over Internet Protocol (VoIP) calling interface.
The campaign recorded a cumulative CASA growth of Rs.1,920 crores during the FY 25-26.
Micro-market Initiative
The Micro-market Initiative was launched with the objective of onboarding new customers and mobilising incremental balances in districts where the Banks market share was lower than its branch presence.
Wave 1 was launched on 1st August 2025 across five regions - Dindigul, Coimbatore, Vellore, Ernakulam, and Kancheepuram. Wave 2 was launched on 6 th October 2025 across seven regions -Ranchi, Lucknow, Dehradun, Ahmedabad, Kozhikode, Jaipur, and Pune.
The initiative resulted in encouraging growth in new account acquisitions, with further balance accretion expected in the newly opened accounts.
Under Wave 1, a total of 1,278 accounts were opened, contributing cumulative CASA growth of Rs.7.68 crores.
Under Wave 2, a total of 4,017 accounts were opened across the seven regions, contributing cumulative CASA growth of Rs.21.44 crores.
EXIM ETB and NTB Initiatives
Under Project LEAP, the Bank also undertook focused initiatives in the EXIM segment aimed at reviving dormant relationships and expanding the customer base through targeted outreach and specialised engagement.
As part of the EXIM ETB Initiative, 60 Forex Officers in Authorised Dealer (AD) branches have been reaching out to ETB customers since the commencement of the campaign on 14th July 2025, with emphasis on building customer-centric and service-oriented relationships. Under this programme, 1,663 leads were identified by branches, and dedicated Forex Officers actively engaged with these customers to promote the Banks product offerings.
The Bank also launched the EXIM NTB Campaign under Project LEAP across 111 AD branches in 48 regions. A total of 15,385 active and high-potential leads were identified for business conversion, and the campaign was launched on 6 th October 2025. Overall, the EXIM initiative has resulted in cumulative CASA balance growth of Rs.14 crores.
Lead and Succeed
The Lead and Succeed campaign, launched on 2nd January 2026, is one of the Banks most inclusive staff participation initiatives. Under this campaign, employees across clerical and supervisory cadres are encouraged to refer prospective customers from within their personal and professional networks, including families, friends, and other groups.
Staff members submit lead details through the mChris App on their mobile phones, capturing information such as customer name, mobile number, product of interest, and nearest branch location. Once entered, the lead details are automatically transmitted to the CRM portal of the selected branch, enabling branch staff to promptly contact the prospective customer and facilitate opening of fresh SB/CA accounts.
To qualify for recognition under the campaign, the newly opened accounts are required to maintain the prescribed average balance during the campaign period.
Since its launch, the campaign has generated around 44,577 fresh leads from employees across levels, resulting in the opening of 23,340 new accounts. The initiative is expected to further support growth in CASA balances as well as cross-sell opportunities in other para-banking products.
BRANCH NETWORK MANAGEMENT
Branch Network Management Department oversees the expansion, rationalisation, and optimisation of the Banks physical network, including the opening of new branches and the relocation, merger or closure of existing branches, in accordance with the provisions of Section 23 of the Banking Regulation Act, 1949.
During FY 2025-26 the Department recorded significant achievements in strengthening the Banks presence and service delivery capabilities:
During the current financial year 2025 26, we have successfully opened 163 new branches covering 20 States and 2 Union Territories. Of the 163 branches opened this year, 19 are located in underserved areas in Left Wing Extremism affected districts and 6 in Unbanked Rural Centres, reinforcing our commitment to financial inclusion.
As on 31st March 2026, our Bank operates a robust domestic network of 3494 domestic branches across 28 States and 6 Union Territories. In Last 3 Financial years bank has grown exponentially and opened 280 branches pan India covering 21 states and 3 Union Territories, collectively generating Rs.5058 crores of business as on 31st March 2026 which includes CASA business of Rs.1634 Crores.
Three new Regional Offices were established at Kozhikode, Dindigul and Nagapattinam to enhance administrative efficiency and regional oversight.
The Bank also expanded its specialised infrastructure by setting up six MSME Loan Processing Centres at Chennai-I, Chennai-II, Coimbatore, Delhi, Kolkata, and Mumbai.
Further, to support and promote the startup ecosystem, three dedicated Startup Branches were inaugurated at Bengaluru, Delhi, and Mumbai.
OVERSEAS OPERATIONS
The Bank has four Overseas Branches, one Branch each in Singapore, Hong Kong, Bangkok and Colombo as on 31 st March 2026. India International Bank (Malaysia) Berhad (IIBMB) - a Joint Venture of Bank of Baroda, Indian Overseas Bank and Union Bank of India - is under the process of voluntary winding up. As of 31.12.2025, the entire book value of investment in IIBMB has been realized and therefore IIBMB is no longer a Joint Venture in the books of the Bank.
The Overseas Business stood at Rs.25,177 Crore as of 31st March 2026 as compared to Rs.25,041 Crore as of 31st March 2025.
TREASURY OPERATIONS & INVESTMENTS
Treasury Operations
The total profit from Treasury Operations, comprising profit from the sale of investments, revaluation gain/loss from the fair valuation of Investments and profit on exchange amounted to Rs.383.99 crore in FY 2025 26, compared to Rs.524.00 crore in FY 2024 25. The 10-year benchmark yield hardened from 6.58% to 7.02% during the year.
Investments (Domestic)
As of 31st March 2026, the Banks net investments stood at Rs.1,15,730.43 crores, reflecting an increase from Rs.1,07,019.14 crores as of 31st March 2025. The interest income from Domestic investments rose to Rs.7228.49 Crore in FY 2025-26, compared to Rs.6687.72 crore.
In line with the extant RBI Master Directions on Classification, Valuation, and Operation of Investment Portfolio of Commercial Banks (Directions 2025), the Bank did not transfer investments between categories without prior approval from the Department of Supervision, RBI, during FY 2025 26 and FY 2024-25.
TREASURY OPERATIONS & INVESTMENTS (FOR OVERSEAS ALONE)
Treasury Operations (Overseas)
The profit on sale of investments (Overseas Centres) was at Rs.6.77 crores during 2025-26. The profit on exchange from Forex business stood at Rs.40.67 crores as on 31.03.2026 as against Rs.37.10 crores in the previous year.
Investments (Overseas)
Net investments of the Bank (Overseas Centres) were at Rs.4079.10 crores as of 31st March 2026. Total Profit including sale of securities & profit on exchange amounted to Rs.47.44 crores during the year 2025-26.
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/2021-2022/67FIDD.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:
| Category | Investment in Plant and Machinery/ Equipment Cost (WDV) | Turnover |
| Micro | Up to Rs.1.00 Crore | Up to Rs.5.00 Crore |
| Small | Above Rs.1.00 Crore & Up to Rs.10.00 Crore | Above Rs.5.00 Crore & Up to Rs.50.00 Crore |
| Medium | Above Rs.10.00 Crore & Up to Rs.50.00 Crore | Above Rs.50.00 Crore & Up to Rs.250.00 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:
| Category | Investment in Plant and Machinery/ Equipment Cost (WDV) | Turnover |
| Micro | Up to Rs.2.50 Crore | Up to Rs.10.00 Crore |
| Small | Above Rs.2.50 Crore & Up to Rs.25.00 Crore | Above Rs.10.00 Crore & Up to Rs.100.00 Crore |
| Medium | Above Rs.25.00 Crore & Up to Rs.125.00 Crore | Above Rs.100.00 Crore & Up to 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.50107 Crores as on 31st March 2026 registering y-o-y growth of 13.08%. The growth is in line with the guidance provided in the last Financial Year.
Key Points
Pradhan Mantri Mudra Yojana:
Bank has achieved target under PMMY with disbursement amounting to Rs.7746.16 Crores as on 31st March 2026 vis-a-vis target of Rs.7000 crores. Bank has sanctioned 336233 number of fresh Pradhan Mantri Mudra Yojana (PMMY) loans amounting to Rs.7808.26 crores in FY 25-26.
PMEGP:
Bank has actively sanctioned applications under PMEGP and provided support to 2123 new entrepreneurs in FY 25-26 with total project cost amounting to Rs.232 Crores. Outstanding as on 31.03.2026 under PMEGP stands at Rs.676.46 Crores.
IOBs Initiative towards Start Up eco system:
The Bank initially had one dedicated Start Up Branch in Chennai and opened 3 new branches in Delhi, Mumbai and Bangalore in FY 25-26 to support Indias start up eco system. Bank has sanctioned Rs.55.35 Crores through these branches to various startups and exposure as on 31.03.2026 stands at Rs.85 Crores.
The Bank has a dedicated scheme called IOB Pragati to cater to the specific needs of startups and offers credit guarantee coverage up to Rs.20 Crores through NCGTC.
Loan Origination System:
Bank has successfully onboarded almost all 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 various digital products:
IOB E-GST Scheme
IOB E-GST Scheme provides 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.
Mudra STP:
Sanction of collateral free loans up to Rs.10 Lakhs which can be availed by the customer using Banks dedicated portal. The portal has a pre-defined set of BRE which assesses the input and sources various documents like statements, ITR etc. to provide sanction within a few minutes to the customer.
New Scheme Launch:
The Bank has launched various new and innovative products based on feedback received from the field and market demand. List of such schemes are as under:
1. Restructured PM SVanidhi scheme with enhanced quantum along with credit card facility.
2. Mutual Credit Guarantee Scheme with coverage for MSME loans up to Rs.100 Crores.
3. Aajeevika Sahayata Rin for vulnerable occupational groups like Transport Workers, Domestic Workers, Gig Workers, Waste Workers, Construction Workers and Care Workers with loan amount ranging from Rs.50000/- to Rs.4 Lakhs and Rs.20 Lakhs for JLGs.
4. PMSGMBY Vendor Financing Scheme for solar equipment vendors with loan amounts ranging from Rs.10 Lakhs to Rs.5 Crores.
5. Credit Guarantee Scheme for Exporters to support units engaged in exports to the USA affected by recent tariffs imposed.
6. Dedicated scheme for hospital and equipment financing for setting up or renovation of hospitals and health care units.
7. MSME Commercial Vehicle Loan Scheme for financing commercial vehicles with loan amount ranging from Rs.5 Lakhs to Rs.5 Crores.
8. Other state government sponsored schemes were also launched.
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 31.03.2026 is Rs.7822.18 Crores.
Cluster based financing:
The number of clusters identified by the bank are 33 as on 31.03.2026. Bank has added 10 clusters in FY 25-26 and is continuously identifying new clusters based on geographical location of industries and feasibility. Outstanding under cluster-based lending stands at Rs.2863.12 Crores.
The list of clusters as on 31.03.2026 is as under:
| S. No. | Name of the Cluster | 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 |
| 7 | Auto Components Cluster in Kancheepuram | Kancheepuram |
| 8 | Auto/Bicycle Components Cluster in Ludhiana | Ludhiana |
| 9 | Hosiery/Textiles Cluster in Ludhiana | Ludhiana |
| 10 | Plywood Industry Cluster in Perumbavoor, Kerala | Ernakulam |
| 11 | Textile Cluster in Surat, Gujarat. | Baroda |
| 12 | Textile Cluster in Tiruchengode, Tamil Nadu | Salem |
| 13 | Auto Components Cluster in Hosur and Krishnagiri, Tamil Nadu. | Salem |
| 14 | Alleppey and Kollam COIR Products Cluster | Trivandrum |
| 15 | Baroda - Engineering Cluster | Baroda |
| 16 | Baroda - Chemical & Chemical Products Cluster | Baroda |
| 17 | Mandi Gobindgarh, Fatehgarh Sahib - Steel Re Rolling Cluster | Chandigarh |
| 18 | Erode & Karur Textile and Allied Activity Cluster | Erode |
| 19 | Genome Valley-Medchal/Malkajgiri Pharmaceutical Cluster | Hyderabad |
| 20 | Trichy- Fabricators and Engineering Works Cluster, | Trichy |
| 21 | Ranipet Leather Products Cluster | Vellore |
| 22 | Panipat NCR Delhi-Textile Cluster | NCR Delhi |
| 23 | Ranipet -Steel Fabrication & Machinery Shop Industry Cluster | Vellore |
| 24 | Automobile & Engineering Cluster Pune | Pune |
| 25 | Brassware and Handicraft Cluster Moradabad | Meerut |
| 26 | Automobile Parts and Engineering Cluster Delhi | Delhi |
| 27 | Electricals and Electronic Goods Cluster Delhi | Delhi |
28 |
Engineering, Auto Ancillary (Automobile Parts, Automobile Accessories Manufacturing), Foundries, Casting, Forging and other related activities Cluster |
Ahmedabad |
| 29 | Steel Re Rolling, Casting, Metal Fabrication Cluster | Raipur |
| 30 | Auto Components, Engineering, Fabrication Cluster | Bhopal |
| 31 | Garments & Textile Cluster | Bhopal |
| 32 | Safety Matches & Other allied activities Cluster | Tuticorin |
| 33 | Engineering and Fabrication Cluster, Begusarai | Patna |
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
1. Bank is actively working towards expanding digitalization of MSME products and implementation of STP for more products to ensure hassle free journey for our customers and reduced TAT.
2. The bank is having dealer financing scheme for supply chain financing to cater to the needs of corporates and ancillary dealers/distributors.
The bank is in the process of developing a mechanism to source leads from PSB alliance which shall add fresh MSME business to our portfolio.
3. 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
Retail Credit Performance:
The total outstanding under Retail Credit Portfolio increased from Rs.62764 crores as of March 2025 to Rs.91086 Crores as of March 2026. The Retail Portfolio Registered Y-o-Y growth of 45.12% during FY 2025-26. The overall Retail share to domestic advances is 30.94 %.
Housing Loan Portfolio has registered Y-o-Y growth of 12.13 % during FY 2025-26. Fresh Housing Loans sanctioned during the review period was 21362 accounts, amounting to Rs.8423.36 crores and Disbursement was Rs.7851.65 crores.
Vehicle Loan Portfolio has registered Y-o-Y growth of 31.51% during FY 2025-26. Fresh Vehicle Loans sanctioned during the review period was 28821 accounts amounting to Rs.3414.04 crores and disbursed amount was Rs.3388.31 crores.
Mortgage Loan Portfolio has registered Y-o-Y growth of 44.46% during FY 2025-26. Fresh Mortgage Loans sanctioned during the review period was 2755 accounts amounting to Rs.3200.98 crores and disbursed amount was Rs.3090.96 crores.
Personal loan Portfolio has registered Y-o-Y growth of 23.56% during FY 2025-26. Fresh Personal loan sanctions during the review period was 29908 accounts amounting to Rs.1656.80 Crores and disbursed amount was Rs.1651.87 crores.
Jewel Loan Portfolio has registered Y-o-Y growth of 184.03% during FY 2025-26. Fresh Jewel Loan sanction during the review period was 2475365 accounts amounting to Rs.48508.93 crores and disbursed amount was Rs.48250.53 crores.
A. Modification in Existing Scheme:
Based on market dynamics and feedback from field functionaries and to make our product more competitive, suitable modifications were carried out in the existing Retail Products to make them more competitive products. Details of the modification done in the Retail loan products are as under:
1. Loan Against Property: In view of escalation in living cost, expenditures etc maximum quantum under LAP has been increased from Rs.20.00 Crores to Rs.40.00 Crores for Metro Centre & Rs.20.00 Crores to Rs.25.00 Crores for Urban Centre. For Non-Individuals the quantum has been increased from Rs.40.00 Crores to Rs.200.00 Crores. Modification/Relaxation in Income norms, THP Norms, Security, Margin, Entry/Exit Age has been provided.
2. Housing Loan Top Up Scheme (Modification) - The existing upper limits of 5.00 crore for Housing Loan Top-Up and 2.00 crore for NRI Top-Up have been withdrawn. Under the revised policy, there is no maximum sanction amount prescribed for loans under the Home Loan Top-Up and NRI Home Loan Top-Up schemes.
3. Housing Loan (Modification) - Modification/ Relaxation in Loan Eligibility, Entry/Exit Age and Work experience has been provided.
B. Introduction of New Products/Initiatives under Retail Credit Portfolio:
1. IOB Easy Plot Scheme
Resident, non-resident and staff with maximum finance up to Rs.3.00 Crores with margin of 25% for purchase of Residential plots/sites for borrowers with upper age limit of 60 years.
2. Harit Subhagruha Scheme:
The Scheme shall cover Housing Loans for Individual Houses and Flats/Houses under Green home construction, or eco-friendly house building Projects certified by LEED, IGBC, GRIHA rating agencies with concession in Interest rates and processing charges.
3. New Housing Loan Scheme for State of Tamil Nadu:
Kalaignarin Kanavu Illam (HLKKI)- To provide financial assistance in the form of Housing Loan to meet gap between Govt. Grant and actual cost of construction of House under
Govt. of Tamil Nadus Housing Program “Kalaignarin Kanavu Illam”.
4. Demand Loan Against Deposit Straight Through Process (STP):
The Demand Loan Against Deposit (STP) is a fully digital, endtoend lending product designed for speed, convenience, and efficiency. Enabled through a Straight Through Process, the entire loan lifecycle from application and sanction to disbursement and closure is completed online without any manual intervention.
C. Women Empowerment Initiatives:
IOB Sakhi:
A special Personal Loan Scheme for both Salaried (Loan Quantum up to Rs.30.00 lakhs) & Non Salaried (Loan Quantum up to Rs.10.00 Lakhs) women borrowers.
IOB Pink Wheels:
A 2-wheeler Vehicle loan scheme for women borrowers with no maximum ceiling on Loan Amount.
D. Digital Initiatives.
The Bank has taken following steps towards digitalization
Retail Product Movement to LOS:
For improvement in quality and reduction in TAT of processing of Loans we have moved all major Retail Loan products to LOS (A Digital Loan processing platform)
During FY 2025-26, we have moved the following products to LOS:
1. Housing Loan Takeover
2. Liquirent
3. Liquirent Top Up
4. IOB Sakhi
5. IOB Pink wheels
CORPORATE CREDIT
During the financial year, Bank placed a strong focus on asset quality, risk management, and regulatory compliance. The year was characterized by selective credit expansion, and heightened emphasis on portfolio resilience amid evolving market conditions.
Bank continued to support key corporate and commercial segments across manufacturing, infrastructure, services, etc. Credit underwriting remained disciplined, with a strong focus on borrower fundamentals, cash-flow based lending, and sectoral risk assessment. New sanctions were aligned with the institutions risk appetite framework, prioritizing well-rated corporates, established business models, and entities demonstrating stable cash flows and governance standards.
Portfolio quality remained a key focus area throughout the year resulting in containment of slippages and improvement in overall portfolio stability. Emphasis on structured repayment mechanisms, adequate collateral coverage, and covenant monitoring further strengthened credit discipline. Bank has also signed an MoU with State Bank of India (SBI Chakra) to target following emerging and key sunrise sectors: Renewables E-mobility & Charging Infra Green Hydrogen & Ammonia Advanced Cell Chemistry/ Battery Decarbonization Smart Infrastructure Data Centres In line with regulatory expectations, Bank ensured robust compliance with internal credit policies, RBI guidelines, and exposure norms. Credit processes were further streamlined through enhanced due diligence practices, and improved turnaround times for credit decisions without compromising risk standards.
Looking ahead, Bank remains committed to supporting sustainable business growth while preserving portfolio quality. The focus will continue on prudent credit expansion both vertically and horizontally by increasing the base, heightened monitoring of emerging risks, increased use of technology and analytics, and strengthening of early warning systems. Bank is well-positioned to navigate evolving market dynamics while maintaining a balanced approach to growth and risk.
PRIORITY SECTOR CREDIT
The average growth of four quarters for the FY 2025-26 was Rs.7951.25 Crores and the average Outstanding stood at Rs.117302.18 Crores against the target of Rs.84669.02 Crores and the Bank has surpassed the mandatory norms of 40% of ANBC by achieving 55.42% under Total Priority Sector Advances during FY 2025-26.
Agriculture
The average growth of four quarters for the FY 2025-26 was Rs.4577.44 Crores and the average outstanding stood at Rs.62898.25 Crores against the target of Rs.38101.06 Crores and the Bank has surpassed the mandatory norms of 18% of ANBC by achieving 29.71% under Agriculture advances during FY 2025-26.
Loans to Small and Marginal farmers
The average growth of four quarters for the FY 2025-26 was Rs.3603.07 Crores and the average outstanding stood at Rs.42052.44 Crores against the target of Rs.21167.25 Crores and the Bank has surpassed the mandatory norms of 10% of ANBC by achieving 19.87% under loans to Small/ Marginal farmers during FY 2025-26.
Loans to Non-Corporate farmers
The average growth of four quarters for the FY 2025-26 was Rs.4588.42 Crores and the average outstanding stood at Rs.62405.46 Crores against the target of Rs.29634.16 Crores and the Bank has surpassed the mandatory norms of 14.00% of ANBC by achieving 29.48% under loans to Non Corporate Farmers during FY 2025-26.
Loans to Micro Enterprises
The average growth of four quarters for the FY 2025-26 was Rs.2568.54 Crores and the average outstanding stood at Rs.25168.22 Crores against the target of Rs.15875.44 Crores for the FY 2025-26 and the Bank has surpassed the mandatory norms of 7.5% of ANBC by achieving 11.89% under loans to Micro Enterprises during FY 2025-26.
Loans to Weaker Section
The average growth of four quarters for the FY 2025-26 was Rs.3822.66 Crores and the average outstanding of four quarters for the FY 2025-26 stood at Rs.47479.57 Crores against the target of Rs.25400.71 Crores and the Bank has surpassed the mandatory norms of 12.00% of ANBC by achieving 22.43% under loans to Weaker Section.
PSLC Sale
Bank has sold PSLC under Small and marginal Farmer Category of Rs.30,588 Crores and earned an income of Rs.595.52 Crores which is highest in the Bank in the Past years.
Microfinance
During the year, the Bank credit-linked 54755 Self Help Groups (SHGs) with a credit outlay of Rs.5126.54 Crores.
Specialized SHG Credit Centre
30 Branches with 5 branches each forming a Cluster in 19 Regions of our Bank have been formed as Special SHG Credit Centres for processing of SHG loans from nearby Branches. During the FY 2025-2026, Rs.999.65 Crores to 8161 SHG groups have been disbursed by the Specialized SHG Credit Centre.
Credit flow to women
Banks credit to women stood at Rs.78,408 crores as of 31st March 2026 which constitutes 36.69 % of the Banks Adjusted Net Bank Credit.
Lead Bank Initiatives
The Bank is the Convenor of State Level Bankers Committee (SLBC) for Tamil Nadu. The Bank serves as the Lead Bank in 15 districts of Tamil Nadu and 1 district in Kerala.
SLBC Initiatives for Financial Inclusion:
As on 31st March 2026, a total 166.84 lakh PMJDY accounts were opened. Of these, 99.88 Lakh accounts belong to women, representing 59.87% of the total accounts.
SLBC initiatives on Credit Flow in Tamil Nadu:
As on March 2026, banks in Tamil Nadu have achieved the following:
Banks in the state of Tamil Nadu have surpassed Annual Credit Plan (ACP) target of Rs.9.00 Lakh crores.
The Credit Deposit (CD) ratio of Banks in the State remains above 100% and as of Mar 2026, the CD ratio stands at 131.78%.
Priority Sector lending accounted for 46.56% of total advances, exceeding the national norms of 40%.
Agricultural Advances constitute 24.43% of total lending, against the national norm of 18%.
In support of financial inclusion and womens empowerment, Government continues to promote lending to womens Self-Help Groups (SHG). During FY 202526, banks in the State disbursed SHG loans amounting to Rs.37,049 crore, exceeding the annual target of Rs.37,000 crore
FINANCIAL INCLUSION
Our Bank has engaged M/s. Integra Micro Systems Pvt. Ltd., as Corporate Business Correspondent (CBC) to engage Business Correspondent Agents (BCAs) along with Technology Services since 2022. In order to increase the financial inclusion outreach, we have engaged 5 Corporate business Correspondents during 2023, namely M/s. Atyati Technologies Pvt. Ltd., M/s. FIA Technology Pvt. Ltd., M/s. Starfin India Pvt. Ltd., M/s. Zero Mass Pvt. Ltd. and M/s. RNFI Services Ltd., for management of Business Correspondent Agents (BCAs) across PAN India. There are 12187 Business Correspondent Agents in our Bank as on 31.03.2026 and providing banking services to the customers at their doorstep like opening of saving, RD and TD accounts, enrolment under Jan Suraksha Schemes (APY, PMJJBY and PMSBY), recovery in loan accounts including NPA accounts, mobilizing deposits and collecting RD instalment.
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 9457638 PMJDY Accounts as on 31.03.2026, out of which 9021504 (95%) are operative accounts. We have issued 8565083 RuPay Debit Cards in PMJDY accounts since inception till 31st March 2026.
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.
Jansuraksha Schemes
The Jansuraksha Schemes were launched by the Prime Minister of India on 1st June 2015. The Bank is enrolling customers under Jansuraksha schemes viz PMJJBY and PMSBY. As on 31st March 2026, the enrolment count under Jan Suraksha schemes is as below:
Schemes |
Status of enrolment as on 31st March 2026 (Cumulative) | Status of Enrolment during the FY 2025-26 |
| PMJJBY | 4720204 | 937570 |
| PMSBY | 9916217 | 1599520 |
| Total | 14636421 | 2537090 |
Atal Pension Yojana:
Atal Pension Yojana (APY) is an old age Social security scheme for a savings account holder 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 | 18,540 |
| 2016-17 | 60,084 |
| 2017-18 | 1,11,959 |
| 2018-19 | 1,03,711 |
| 2019-20 | 1,50,010 |
| 2020-21 | 1,79,081 |
| 2021-22 | 2,32,860 |
| 2022-23 | 2,77,710 |
| 2023-24 | 2,61,318 |
| 2024-25 | 2,67,678 |
| 2025-26 | 3,27,234 |
| Total APY Enrolments (Cumulative) | 19,90,185 |
Rural Self Employment Training Institutes (RSETIs)
In line with the guidelines issued by Ministry of Rural Development (MoRD), Govt of India, the Bank had set up total 14 RSETIs in all Lead Districts allotted to IOB in the State of Tamil Nadu and Kerala, 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 520 training programs benefiting 16080 rural participants. Bank has achieved settlement of 81% and credit settlement of 64% 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 on various financial products and services available from formal financial institutions, provide face-to-face financial counseling services and offer debt counseling to indebted individuals. They are also conducting periodical camps at various places. As on 31st March 2026, 98797 credit counselling have been conducted by the FLCs since inception. 52443 Financial Literacy camps were conducted on various aspects of Banking and 158701 SB accounts have been sourced and opened since inception. 5945 Special camps for newly included people in the financial system were conducted by covering 466512 beneficiaries. FLCs conducted FL sessions at 118 ITIs, 7 Vocational Training partners (VTPs) and 3 Operational Centres (OCs) and imparted Financial Literacy to 39226 Students since inception.
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 drive financial inclusion to the last mile.
PERFORMANCE ON PARA-BANKING PRODUCTS
Under Para banking business, bank has earned income of Rs.43.90 Crores during FY 2025-26 through Bancassurance & Distribution of Mutual funds as against Rs.33.32 Crores as on 31.03.2025 during the previous year thereby registering a Y-O-Y growth of 31.75%.
Products Launched during the FY 2025-26
We have introduced the following new products during the FY 2025-26.
Group Personal Accident Insurance Policy PAI 2000 with SBIGI PAI product exclusively for the customers of our bank by providing personal accidental cover of Rs.40 Lakh at a flat premium of Rs.2000.
New Group Critical Care (New GCC) Loan linked group critical product with Niva Bupa Loan linked product providing critical illness and accidental insurance coverage for borrowers in the age group of 18 to 55 years with policy tenure of 5 years.
Super Top Up Group Insurance Product with Niva Bupa New group insurance product for the new as well as existing policy holders by providing cover for the age group of 18-60 years (adults) and 91 days 21 years (child). Super Top Up health plan covers the total hospital bills up to the limit specified in super top up plan over & above the deductible amount. Once the deductible is paid, the super top up policy becomes active for subsequent claims.
SHG Suraksha Group Insurance Product with Niva Bupa SHG Suraksha is a new group insurance product from Niva Bupa, offered through Indian Overseas Bank exclusively for SHG members banking with the Bank. It provides Hospital Daily Cash of 1,000/day and ICU Cash of 2,000/day (payable per completed 24 hours) up to a combined maximum of 30 days in a policy year, along with Accidental Death Cover of 1,00,000. The annual premium is 300 (incl. GST), with key waivers such as no waiting periods and good health declaration waived as per policy terms.
IOB Suraksha Plan D with USGIC is a group personal accident insurance product for IOB Savings Account holders. It provides 40 lakh cover for Accidental Death and Permanent Total Disability. Annual premium is 1,750 (incl. GST); entry age 18 70 years with lifetime renewability.
Super Top Up Plus Group Insurance product with Niva Bupa is a new group health insurance product offered to Savings A/c and corporate salary customers. It provides enhanced top-up coverage of 30 lakhs with a 3-lakhs deductible, upgrading the earlier Super Top Up plan (15 lakhs with 2 lakhs deductible). The policy covers eligible hospitalization expenses above the deductible up to the sum insured, once the deductible is met via an existing policy or self-payment. It is available for adults (18 65 years) and children (91 days 21 years), with a 1-year policy tenure.
Campaigns conducted for Social Cause:
Monthly campaigns were launched with a social cause, where the channel partner will be contributing towards CSR activity against the premium sourced, which will be utilized on any occasion as suggested by the Bank.
E Hundi for Religious Institutions
We are providing E Hundi stand for Temples, Churches, Mosques, and other Religious Institutions enabling the devotees to make e-offerings
514 E Hundis have been installed at various Religious Institutions during the FY 2025-26 (755 E Hundis installed since inception), which had gained wider publicity in Media and Newspapers in Regional languages.
Rs.35.36 Crores received as offerings as on 31.03.2026 through QR Code stands installed in various Religious Institutions. The offerings received, is retained in the respective accounts.
IOB NEST
IOB NEST is a mobile app devised exclusively for the Society/Associations of residential flats or housing units to maintain the society related functionalities.
The Product was launched on 17.10.2025. Our product stands out as a competitive offer in the market and is the first of its kind among SCBs.
Exclusively developed for Societies/Associations of residential flats and housing units, it aligns with platforms like My Gate and Adda apps.
IOB Nest is a specialized mobile application designed for residential building societies and residents. This solution seeks to simplify financial and administrative processes within societies while improving user experience through digital interaction.
| No of Applications Sourced | Outstanding Balance |
| 210 | Rs.7.58 Cr |
CUSTOMER SERVICE
Bank remains steadfast in its commitment to delivering seamless, reliable, and customer-centric services. With a strong focus on enhancing customer experience, the Bank continues to ensure prompt and satisfactory resolution of customer grievances within the prescribed Turn Around Time (TAT). During the year, Bank has significantly strengthened its grievance redressal framework by revamping and implementing an advanced Customer Relationship Management (CRM) system with enhanced capabilities. This initiative has enabled more efficient handling, tracking, and resolution of customer complaints, thereby improving overall service delivery.
Bank provides multiple convenient channels for customers to register their grievances, including the Banks website, Internet Banking, Mobile Banking application, social media, Email, WhatsApp, SMS and Contact Centre. Customers are empowered to track the status of their complaints in real time, submit additional information when required, and close complaints upon satisfactory resolution.
Grievance Redressal Mechanism:
Banks robust grievance redressal mechanism is designed to deliver timely and effective solutions, with a focus on resolving complaints by the next working day wherever feasible. A dedicated helpdesk has been established at Regional Offices across the country, comprising the second line of ROs as Grievance Redressal Officer (GRO) supported by an RCC official for technical assistance and a desk officer for immediate handling of customer grievances.
Customer Relationship Management (CRM) platform is fully aligned with regulatory requirements and provides real-time access to complaint data across various levels of the organization, ensuring transparency, accountability, and swift resolution. The system also incorporates a structured feedback mechanism, enabling customers to share their experience upon closure of complaints, thereby facilitating continuous improvement. Bank has an Internal Ombudsman at Apex level who will give his observations on rejected complaints thereby ensuring fair disposal of the grievance.
In addition to the internal grievance redressal system and Contact Centre, Bank effectively manages complaints received through external grievance redressal channels such as the Banking Ombudsman (Reserve Bank of India), CPGRAMS (Centralized Public Grievances Redress and Monitoring System), and INGRAMS (Integrated Grievance Redressal Mechanism of the 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: This day is conducted across all branches on 15th of every month; this initiative provides a dedicated platform for customers to voice their concerns. Feedback and suggestions received are systematically reviewed and placed before the Customer Service Committee of the Board for policy-level improvements.
Grievance Disposal Day: Observed on the third Friday of every month at Branches and Regional Offices, this initiative focuses on expediting the resolution of pending complaints, ensuring faster turnaround and improved service efficiency.
Customer Relationship Management (CRM): As part of the Banks digital transformation journey, an integrated CRM-based Complaint Management System has been implemented. This system facilitates end-to-end management of customer complaints from registration and categorization to resolution and closure enhancing operational efficiency, transparency, and customer satisfaction.
Customer service center of excellence (CSCoE) for taking feedback of closed complaints and other products is established as an extended wing of Customer service department. The feedback thus analysed is placed to board for its oversight.
PSB Alliance Doorstep Banking:
As per the instructions of IBA and RBI, our bank has implemented PSB alliance Doorstep banking successfully.
All India DSB Nationwide Digital Life Certificate campaign was conducted by PSB Alliance private Limited from 01.11.2024 to 31.12.2025. During the campaign 202 transactions were raised successfully.
All India DSB Abhiyaan -2 campaign was conducted by PSB Alliance private Limited from 05.08.2025 to 04.11.2025. During the campaign 1534 transactions were raised successfully.
Achievement of the Bank:
The financial year 2025 26 marked a significant milestone in the Banks customer service journey, with notable achievements and continuous improvements in grievance redressal and customer engagement.
Bank recorded its best-ever grievance disposal performance, successfully maintaining zero complaints under CPGRAMS and INGRAMS, reflecting the effectiveness of its robust redressal mechanism.
In recognition of its outstanding performance, the Bank was conferred the prestigious “Best Performer of the Year 2025” award for Effective Redressal of Public Grievances among Public Sector Banks by the Department of Financial Services (DFS) on 13.02.2026.
A QR-based feedback mechanism was introduced at branch level to capture customer feedback on services and overall branch experience. This initiative enables real-time insights and supports continuous improvement in service quality.
The pendency level of complaints remained near to NIL, demonstrating operational efficiency and proactive grievance handling.
The Bank continued its Quarterly Educative Series, issuing 24 circulars based on complaint analysis and root cause identification, which significantly contributed to reducing recurring issues.
A Customer Experience Centre of Excellence (CECoE) was established within the Customer Service Department, in line with EASE 8.0 initiatives. The Centre conducts structured survey calls with customers post-complaint closure to assess service quality and identify improvement areas.
A monthly review mechanism has been instituted wherein the MD & CEO personally interacts with customers on a sample of 20 complaints to evaluate the quality and effectiveness of resolutions.
Bank organized Town Hall Meetings in Chennai II (29.07.2025) and Kancheepuram (19.09.2025) regions to enhance customer awareness on key topics such as pension services, RBI Ombudsman framework, nomination facilities, cyber frauds, and digital safety.
A Pensioners Meet was conducted in coordination with RBI to address pension-related concerns and strengthen engagement with senior citizens.
Targeted training programs were conducted on 07.11.2025 for Desk Officers and complaint-prone branches in Chennai I, Chennai II, Kancheepuram, and Vellore regions. These sessions were led by officials from DFS, including the Director, DFS, enhancing staff capability in grievance handling and customer service.
Details of Customer Complaints received and redressed during the year 2025-26 is given below:
| Particulars | FY 2025-26 | FY 2024-25 |
| Number of complaints at the beginning of the year | 2610 | 2017 |
| Number of complaints received during the year | 186011 | 210075 |
| Number of complaints resolved during the year | 188410 | 209482 |
| Number of complaints pending at the end of the year | 211 | 2610 |
| Effective Resolution Rate | 99.89% | 98.77% |
Categories of Complaints for the year ended 31.03.2026 is as follows:
| Nature of Complaints | Total Number of complaints in all Channels | % of Total Complaints |
| NON - DIGITAL | ||
| General Banking | 5708 | 3.07% |
| Customer Service | 5520 | 2.97% |
| Deposits | 1222 | 0.66% |
| Insurance | 538 | 0.29% |
| Advances | 457 | 0.25% |
| CIC | 368 | 0.20% |
| PMJDY | 297 | 0.16% |
| Others | 240 | 0.13% |
| NRI Services | 76 | 0.04% |
| Pension | 40 | 0.02% |
| Total | 14466 | 7.78% |
| DIGITAL | ||
| Non-ATM | 137634 | 73.99% |
| ATM | 33911 | 18.23% |
| Sub total | 171545 | 92.22% |
| Grand Total | 186011 | 100.00% |
STRESSED ASSETS MANAGEMENT
1. 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.
2. Bank also implemented digitalization in SARFAESI, all the Demand notices, Possession Notice & Sale Notice has also been developed and implemented. We have introduced QR code in all our Sale Notices for more visibility to buyers. Bank is also in the process of digitalization of entire recovery process (i.e.) One time settlement, NCLT, DRT, Lok Adalat, Civil Suit etc.
3. 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 FY 2025-26 was 31119 accounts for an amount of Rs.614.86 Crores and out of this, the Bank has so far recovered an amount of Rs.493.70 Crores.
4. Bank conducted E-Auctions for the properties possessed under SARFAESI Act every month till March 2026 through PSB Alliance platform. Bank was able to put E auction of 3992 properties and out of this, 671 Properties were sold fetching Rs.597.22 Crores under E auction in FY 2025-26. 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 mobilize 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.
5. The total NPA recovery done by the Bank during the FY 2025-26 was around Rs.3576 Crores and 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 53 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 2097 applications filed under RTI Act, 2005 for seeking information in the year 2025-26. All the applications were duly disposed of as per the provisions of RTI Act, 2005 by CPIO and CAPIOs.
Bank has received 310 first appeals seeking further information against the reply of CPIO and CAPIO and all the appeal were 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 Honorable Central Information Commission (CIC), New Delhi. Bank received 28 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 inherent and essential aspect of banking business. In the course of providing a wide range of financial services, banks are exposed to various risks commensurate with their approved risk appetite. Every transaction undertaken by the Bank alters its overall risk profile. Accordingly, in the normal course of business, the Bank is exposed to multiple risks, including Credit Risk, Market Risk, Operational Risk, Liquidity Risk and other residual risks.
The objective of risk management is not to eliminate or prohibit risk-taking activities, but to ensure that risks are undertaken in a conscious, informed and controlled manner, with clear objectives and a thorough understanding, so that such risks can be measured, monitored, and mitigated effectively. With a view to managing risks efficiently and strengthening its risk management framework, the Bank has put in place a comprehensive set of risk management practices consisting of policies, methodologies, tools, monitoring mechanisms and Management Information Systems (MIS).
The Bank endeavours, on a continuous basis, to enhance and maximize shareholder value by achieving an optimal balance between risk and return. The overarching risk management objectives of the Bank include identification, measurement, monitoring, control and mitigation of risks, thereby articulating the Banks overall risk philosophy. The risk management strategy is aligned with the Banks risk appetite, which is articulated through clearly defined risk limits prescribed under various risk management policies.
The Bank has established a robust risk governance framework. The Risk Management Committee of the Board (RMCB), a sub-committee of the Board, oversees the management of Credit Risk, Market Risk, Operational Risk and other material risks. To support this governance structure, the Bank has constituted the following internal management committees:
Credit Risk Management Committee (CRMC) Credit Risk
Asset Liability Management Committee (ALCO) and Funds Committee Market and Liquidity Risk
Operational Risk Management Committee (ORMC) and Product/Process Risk Mitigation Committee (PRMC) Operational Risk
Information Security Committee Information Security and Cyber Risk
A full-fledged Risk Management Department functions at the Banks Central Office, independent of the business units, for implementation of best-in-class risk management systems and practices. The Chief Risk Officer (CRO), in the rank of Chief General Manager, heads the department and is responsible for overall supervision of risk management activities in the Bank. The CRO is also the convener of all internal risk management committees.
Risk management functions are also carried out by the Mid-Office and other functional departments through monitoring of compliance with approved policies, risk limits and internal approvals. Risk Managers have been designated at Regional Offices to oversee credit risk at the regional level. In addition to coordinating with the Risk Management Department, Central Office for MIS submissions, they participate in Regional Level Credit Approval Committees.
The Bank follows the principle that risks should be controlled at the point of origination. Basel III guidelines have been implemented from 01.04.2013, and the Bank maintains capital in accordance with these guidelines. The Reserve Bank of India (RBI) has prescribed a minimum Capital to Risk Weighted Assets Ratio (CRAR) of 9% along with a Capital Conservation Buffer (CCB) of 2.5%, resulting in an overall minimum CRAR of 11.50%.
The Basel III framework is built on three mutually reinforcing pillars:
Pillar I: Minimum capital requirements for Credit Risk, Market Risk and Operational Risk
Pillar II: Supervisory Review Process, ensuring adequate capital for all material risks commensurate with the Banks risk profile
Pillar III: Market Discipline through detailed disclosures
In compliance with Pillar II requirements, the Bank has put in place a Boardapproved Internal Capital Adequacy Assessment Process (ICAAP) Policy. The ICAAP framework assesses all material risks beyond Pillar I risks and ensures that adequate capital is maintained on an ongoing basis.
The Bank has formulated a Stress Testing Framework in line with RBI guidelines dated 2 December 2013. Stress testing and scenario analysis help assess potential vulnerabilities to extreme but plausible events, particularly during periods of economic stress. As per the approved policy and Standard Operating Procedures, stress tests are conducted periodically on the Banks balance sheet and key portfolios, and the results are placed before ALCO, RMCB and the Board.
The Bank has a Board approved Business Continuity Plan (BCP) and Disaster Recovery Plan (DRP). A three data centre architecture has been implemented to ensure zero data loss, supported by:
Multiple high bandwidth MPLS-VPN connections
Dual connectivity through alternate service providers
Alternate media connectivity for branches
Robust firewall and intrusion detection systems have been deployed. A Security Operations Centre (SOC) operates under the Information Security Department to monitor and analyse security incidents and initiate corrective actions. Periodic Information Systems Audits are conducted, and regular Disaster Recovery drills are carried out on a quarterly basis. Network security is further strengthened through periodic Vulnerability Assessment and Penetration Testing (VAPT) exercises conducted by external experts, in line with RBI guidelines.
The Bank has procured an integrated ALM and Liquidity Risk Management system covering Market Risk, Liquidity Risk and Basel capital computation, enabling migration towards advanced approaches envisaged under the Basel III framework.
RBIs liquidity risk management guidelines, effective from March 2013, and revised guidelines issued on 21 April 2025 (effective from 1 April 2026) require preparation and submission of liquidity returns at various frequencies for both domestic and overseas operations. The Bank has established systems and procedures in compliance with these guidelines.
To strengthen short-term liquidity resilience, RBI introduced the Liquidity Coverage Ratio (LCR), which mandates holding sufficient High Quality Liquid Assets (HQLA) to withstand a stressed scenario of 30 days. The minimum LCR requirement is 100% effective from 1 January 2019. The Bank consistently maintains LCR well above the prescribed minimum.
For long-term funding resilience, RBI introduced the Net Stable Funding Ratio (NSFR), with a minimum requirement of 100% effective from 1 October 2021. The Bank maintains NSFR above the regulatory threshold, supported by a stable funding base primarily consisting of retail and small business deposits.
Pursuant to RBI guidelines dated 17 February 2023 on Governance, Measurement and Management of IRRBB, the Bank computes Interest Rate Risk in the Banking Book. The potential impact on Economic Value of Equity (EVE) and Net Interest Income (NII) is measured and reported to RBI. The Banks IRRBB exposure remains well within the approved tolerance limits and is monitored on an ongoing basis.
Basel III also introduced a simple, transparent, nonriskbased Leverage Ratio as a supplementary measure to riskbased capital requirements. The Bank complies with the regulatory leverage ratio requirements and reports the same to RBI on a quarterly basis since 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. information to the market participants to evaluate the performance of the bank in various parameters.
The Bank continues to strengthen its commitment towards sustainable banking practices and integration of Environmental, Social and Governance (ESG) considerations into its strategic and risk management framework.
Recognising climate risk as a material and emerging risk impacting the banking sector, the Bank has initiated a structured approach towards climate risk management and financed emissions assessment. In this direction, the Bank has procured a specialized system, which is currently under implementation, having the capability to measure climate risk exposures and financed emissions across the portfolio.
During FY 2025-26, the Bank initiated measurement of financed emissions in alignment with the methodology prescribed by the Partnership for Carbon Accounting Financials (PCAF). Further strengthening its commitment towards adoption of globally accepted emissions accounting standards, Indian Overseas Bank has become a signatory to Partnership for Carbon Accounting Financials (PCAF).
The Bank has commenced financed emissions calculations using the CEDA Emission Factors (CEDA EF), and the methodology and outputs are undergoing internal validation and refinement. Upon completion of the mapping of CEDA emission factors with RBI Basic Statistical Return (BSR) codes by PCAF, the Bank intends to standardize its methodology and undertake phased disclosure of financed emissions in line with evolving regulatory and global disclosure expectations.
As part of strengthening ESG integration into credit risk assessment, the Bank has operationalised an ESG Scorecard as a mandatory component of the credit appraisal process for all borrowers having aggregate exposure of 50 crore and above. The ESG Scorecard framework ensures that large credit proposals are evaluated not only on conventional financial and business parameters but also on Environmental, Social, and Governance dimensions, which are increasingly critical in assessing long-term borrower resilience, sustainability, reputation, and creditworthiness.
Further, to support sustainable finance initiatives and promote green building financing, the Bank has signed a Memorandum of Understanding (MoU) with Indian Green Building Council (IGBC). In line with this initiative, the Bank has launched the “IOB Harit Subhagruha” scheme for financing green homes, thereby encouraging environmentally sustainable housing projects and adoption of green building practices.
The Banks efforts in strengthening enterprise-wide risk governance and risk management practices have also received external recognition. During the year, Indian Overseas Bank was conferred the prestigious SKOCH Award in the Platinum Category for its initiatives in Risk Management.
Additionally, the Bank has been certified under ISO 31000:2018 for Enterprise Risk Management, reflecting its commitment towards robust risk governance, structured risk management practices, and continuous improvement in risk oversight mechanisms.
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 2025-26 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 overdues.
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 overdues 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 has launched online portal for uploading stock and book debt statements on 30.10.2025 enabling faster submission of digital statements by the customers/ borrowers.
Bank was able to control slippages during the FY 2025-26 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 Specialised Monitoring (ASM) is allocated by Bank for accounts wherever Credit Verticals have stipulated ASM appointment in the sanction. ASM reports are being placed to the GMs Committee at Central Office and 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 Management is considered as one of the key elements of Corporate Governance Structure and Sound Risk Management Practice of any corporate entity.
The Bank has a well defined Compliance Policy as per Reserve Bank of India Guidelines and has in place systems and procedures for managing Compliance Functions. Necessary Circulars/Instructions on the regulatory Guidelines are being issued periodically.
Chief Compliance officer reports to MD & CEO/Board/ ACB of the Bank, and effectively participates in various policies clearance and governance Meetings. During the financial year, compliance department has made significant improvement in level of compliance at various field levels. Compliance Department has also taken new initiatives and development of the existing compliance tools.
The overall compliance level is submitted to Board/Audit committee of the Board. Annual review of compliance function and further step initiated for improving compliance level of branches are also submitted to audit committee of the board.
The Bank has provided the web Portal viz Knowledge Management Tool in Banks Intranet wherein all the Regulations and Guidelines of the various regulators like RBI, SEBI Etc. can be accessed at a single point.
Compliance culture is being inculcated among the staff members though various forms of communication and interactions. Bank in collaboration with the Indian Institute of Banking and Finance (IIBF), has introduced a customized course on compliance which empowers our staff with in-depth knowledge of compliance requirements, helping them stay ahead in an ever-evolving regulatory environment.
The Banks commitment to compliance innovation and governance excellence was recognized with the prestigious SKOCH Award for the innovative project “Compliance Apexion” initiated by the Bank.
INSPECTION & AUDIT
The Banks Inspection and Internal Audit Department remains a cornerstone of its commitment to operational excellence, serving as a critical pillar for regulatory adherence, risk mitigation, and the reinforcement of internal control frameworks. For the fiscal year 2025 26, Bank focused on three primary mandates: ensuring absolute compliance with directives from the Reserve Bank of India (RBI) and other statutory bodies; evaluating the resilience and efficacy of risk management protocols; and identifying strategic opportunities to bolster the Banks overall operational efficiency and stakeholder confidence.
Highlights of Major Activities during FY 2025 26
| Category | Objective | Key Activities & Highlights | Impact/Significance |
| Overall Mandate | Ensure regulatory compliance and strengthen risk management. | The Bank, with its independent assurance mechanism, proactively monitors the Banks operational resilience and governance standards. | Safeguarded assets and bolstered stakeholder confidence by maintaining a robust and compliant banking environment. |
| Risk-Based Internal Audit (RBIA) | Comprehensive risk-focused coverage. | 100% completion of the RBIA plan for FY 2025 26, covering all branches and units identified through structured risk assessments. | Enabled thorough assessment of risk profiles, ensuring timely mitigation of potential vulnerabilities across the entire network. |
| Offsite Monitoring Unit (OMU) | Enhance early risk detection. | Strengthened through enhanced analytics and control-oriented exception reporting to improve proactive supervision. | Improved the ability to address emerging risks dynamically, aligning internal supervision with modern regulatory expectations. |
| Offsite Control & Surveillance (OCAS) | Improve audit rectification and compliance. | Implemented audit package modifications and dashboard enhancements to focus on key control areas and persistent observations. | Increased compliance with audit recommendations, fostering a more disciplined control environment across all operations. |
| Management Audit | Assess managerial and functional effectiveness. | Conducted across 50 Regional Offices, 42 Central Office departments, 7 Nodal Audit Offices, and 1 Regional Rural Bank. | Provided actionable insights into governance standards, enabling targeted improvements in strategic alignment and efficiency. |
| Concurrent Audit | Real-time transaction monitoring. | Covered 749 branches, representing 50% of total deposits and 60% of total advances. | Provided continuous control/ monitoring, enabling prompt detection and resolution of irregularities. |
| IS Audit & Technology | Ensure security and integrity of IT systems. | Completed all IS audits; addressed observations from regulatory IT examinations; implemented the Framework for Monitoring Outsourcing Arrangements. | Mitigated likely cyber threats and strengthened data security. Enhanced accountability and governance over outsourced technology services. |
| Internal Financial Controls (IFCoFR) | Ensure reliability of financial reporting. | Conducted rigorous control testing at Branches, Regional Offices, and Central Office to enable Annual Certification by SCAs. | Guaranteed the accuracy and integrity of financial statements through a transparent and verifiable audit trail. |
Achievements of the Internal Audit Function
Comprehensive Audit Coverage: Demonstrated an unwavering commitment to thorough oversight, ensuring that 100% of the approved audit plan was executed across all critical business units.
Proactive Risk Management: Significant enhancements to the OMU and analytics-driven surveillance tools reflect a shift towards a “forward-looking” audit approach, identifying risks before they crystallize.
Strengthened Control Environment: Through the Audit Committee of Executives (ACE) and Regional Audit Committee of Executives (RACE), the Bank maintained high-level oversight, with the ACE meetings held 11 times during the financial year exceeding regulatory norms.
Technology & Cyber Resilience: The successful integration of the Outsourcing Monitoring Framework and completion of IS audits demonstrate the Banks dedication to securing its digital infrastructure against evolving threats.
Stability of Compliance Culture: The performance review as of March 2026 confirmed that the overall control environment remained stable, with high-risk branches kept to a miniscule level and audit irregularities closed within permissible timelines.
The Inspection and Audit function has significantly contributed to enhanced governance and improved risk management. Moving forward, the Bank remains committed to the adoption of advanced data analytics and technology-driven supervision to align with the evolving global banking landscape.
VIGILANCE
With the theme of “Business First, Preventive Vigilance Always”, the Bank continued during the year 2025-26, 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.
1. Preventive vigilance Activities: The following Preventive Vigilance initiatives were conducted during the year 2025-26:
a) During FY-2025-26, total 219 complaints were 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 has been pending for more than 3 months as of now.
b) Bank 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 Grameen Bank.
c) 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.
d) CVO/Officials of Vigilance Department have visited 16 Regions of the Bank and Odisha Grameen 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.
e) During the Financial year 2025-26, as part of Vigilance Awareness Week (VAW)-2025 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 3920 staff members were trained during this period.
2. Predictive Vigilance: CO Inspection Reports, Audit reports of all the high and medium risk branches for the year 2025-26 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 4132 concurrent audit reports during the year 2025-26.
Scrutinized 3045 Central Office Inspection Report (COIR) during the year 2025-26.
Scrutinized 1313 Statutory Audit reports during the year 2025-26.
During the year 2025-26 total of 29330 clearances/ status given to employees for availing loans, passport, foreign visits, first line posting etc.
177 No. of SAC files scrutinized
47 No. of Fraud files scrutinized
3. 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 2025-26. As on 31.03.2026 only 77 vigilance cases were under process at various levels and out of that, in 35 cases charge sheet was issued and in remaining 45 cases, issuance of charge sheet is under process by CDAC. Further, more than 36 months NIL case is pending . Total Suspension cases as on 31.03.2026 is 14. Also, during FY-2025-26 total 66 cases were referred to the Advisory Board for Banking and Financial Frauds (ABBFF) out of which 11 cases were taken up for deliberation and concluded. Remaining 55 cases are under process for furtherdeliberation.
4. Participative Vigilance: Commissions message on Vigilance Awareness Week “ : ”/“Vigilance: Our Shared Responsibility” 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 was given on Capacity Building, Identification and Implementation of Systemic Improvement Measures, Updation of Circulars/Guidelines/Manuals, Disposal of complaint received before 30.06.2025, and building a Dynamic Digital presence during the Campaign period. We reached out to public in general on the importance and need for eradicating corruption and embracing Integrity.
Gist of Activities/Events conducted within the organization:
Vigilance Awareness Week (VAW)-2025 was observed during the period from 27.10.2025 to 02.11.2025 as per the instructions and guidelines of the CVC. The following activities were conducted by the Bank during VAW-2025.
I. In-house Vigilance Awareness Activities:
a) Mass Pledge: On 27th October 2025, 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.
b) E-Integrity Pledge: More than 1,37,882 customers have taken Integrity Pledge from 16th August 2025 to 15th November 2025 through our Branches across India.
c) Online Quiz Contest:
An All-India On-line quiz competition was held from 15th October 2025 to 19th October 2025 for all the staff members of the bank. d) Online Essay Contest for Employees: From 06th October 2025 to 18th October 2025 an essay competition was conducted for all employees of the bank through Online EssayContestportalonthetheme“ : ”/“Vigilance: Our Shared Responsibility”.
e) Seminar on prevention of frauds: On 29 th October 2025, pan India a webinar was organized by inviting Dr. Sandeep Mittal, IPS, Addl. DGP, Cyber Crime Wing, Tamil Nadu 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 VAW- 2025 at all Regional Offices. Eminent personalities from CBI, Police etc., were invited as Chief Guest in the meeting.
f) Publication of VAW-2025 Special Edition of IOB Vigil (Quarterly Magazine): Vigilance Department at Central Office published the in-house quarterly magazine “IOB Vigil” VAW-2025 special edition to create awareness regarding the preventive vigilance activities which will be helpful for all the staff members across the work profile.
g) Reward & Recognition to Vigilant IOBians: Special campaign for rewards & recognition was launched for all the staff members who had been instrumental in averting frauds/loss to the bank significantly during the period from 16.08.2024 to 15.08.2025. There were 04 staff members who were rewarded with prizes and certificate of appreciation during the campaign period.
II. Outreach Activities:
a) SKY Advertisement: On 27 th October 2025, Sky Advertising Balloons @ 40 Feet Height on the top of Central office, Chennai, and Staff College Chennai carrying Vigilance Awareness Week - 2025 theme and logo of IOB in Tamil and English.
b) Air Advertisement: As part of the celebration of Vigilance Awareness Week, jingles on the theme of the Vigilance Awareness Week 2025 has been aired from has been aired through FM Radio Channels (Big FM, Radio City and Radio Mirchi) for 07 days (from 27.10.2025 to 02.11.2025).
c) 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 02.11.2025.
d) Events in Schools and Colleges: Various VAW activities across the country in 253 Schools involving 19561 Students and 64 colleges involving 4986 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.
e) Awareness Gram-Sabhas: Across the country 512 Gram Sabhas involving 12838 people were conducted during Vigilance Awareness Week and mass pledge was administered.
f) Seminars/workshops: Across the country total 66 Seminars/workshops were conducted on VAW activities wherein around 3491 Public participated and took mass pledge.
g) Walkathon: Metro and Non-Metro Regional Offices of Chennai in collaboration with Central office organized a
Mega Walkathon on 25.10.2025 at Besant Nagar Beach Chennai.
INFORMATION TECHNOLOGY
During the year, the Information Technology Department undertook several strategic initiatives aimed at automation, system integration, digital enablement, regulatory compliance, and enhancement of operational efficiency across the Bank. The major initiatives implemented are summarized below:
Core Banking Modernization:
Bank has over the last few years has consciously invested in strengthening its Core banking Solution for higher processing capacity, middleware integration layers, digital channel redundancy and disaster recovery readiness. Our current architecture is designed not just for present volume but for significantly higher transaction intensity expected from accelerated retail and digital growth.
Data Centre Modernization:
Bank has now successfully moved its operations to a state-of-the-art datacentre designed to deliver a secure, reliable, and future-ready digital infrastructure platform. This transition reinforces the Banks commitment to providing seamless banking services, enhanced operational resilience, and an improved customer experience. Built to support evolving business needs, the datacentre ensures high availability, scalability, and business continuity, providing a strong foundation for the Banks long-term digital transformation and growth strategy.
Private Cloud Transformation:
Bank has strengthened its digital infrastructure through the upgrade of its private cloud platform, IOB Meghadri, to support the growing needs of customers and the Banks expanding digital ecosystem. This enhanced platform provides greater scalability, resilience, and operational efficiency, enabling faster deployment of digital services and improved customer experiences across channels.
With enhanced computing capabilities and future-ready infrastructure, the upgraded platform will support the Banks innovation initiatives, including advanced analytics and AI-driven services, while ensuring secure, seamless, and uninterrupted operations. The modernization also improves operational agility and cost efficiency, reinforcing the Banks commitment to delivering reliable, technology-driven banking services and accelerating its long-term digital transformation journey.
Jan Suraksha Renewal Automation & API Integration:
Renewal and reconciliation of Jan Suraksha schemes were automated through robust API integration, significantly reducing manual intervention and ensuring accurate premium processing and seamless data synchronization across systems.
TReDS Auto Realization of Bills
Automated lodgment and realization of TReDS bills were enabled through system integration, reducing processing time, eliminating manual intervention, and enhancing accuracy and efficiency.
National Savings Time Deposit Scheme (NSCTD)
The Government backed National Savings Time Deposit Scheme was enabled in the system, providing customers with safe investment avenues offering assured returns along with applicable tax benefits.
National Savings Recurring Deposit Scheme (NSRD)
The National Savings Recurring Deposit Scheme was introduced, allowing customers to build savings through regular contributions with flexible installment options.
GST Invoice Upload System
A mandatory GST invoice upload mechanism linked to payments was implemented, ensuring statutory GST compliance and preventing loss of eligible input tax credit.
eFDR Scheme Linked with NSCCL
A controlled electronic fixed deposit (eFDR) scheme was introduced for collateral management, incorporating system validations, lien marking, and seamless integration with NSCCL.
EASE Survey for Divyangjan Staff
A dedicated survey module was deployed to capture feedback from Divyangjan employees on workplace accessibility, enabling improvements in infrastructure and facilities.
E-Auction QR Code Generator
A QR code generation tool was developed for property auction listings, enabling instant “scan and view” access and improving transparency and ease of information access for stakeholders.
CREWIN Credit Card Canvassing Tool
CREWIN, a digital credit card canvassing platform, was implemented to enable structured customer onboarding with consent capture, built-in validations, and audit ready tracking mechanisms.
Mobile Number Revocation List (MNRL) Validation
System level validation against the Mobile Number Revocation List (MNRL) was introduced to flag risky mobile numbers and enforce enhanced due diligence during customer data updates.
Farmer & Loan Classification Enhancement
Agricultural loan classification was strengthened through automated farmer categorization and activity mapping, resulting in improved MIS accuracy and better regulatory reporting.
Auto Verification of TReDS Bill Realization
TReDS integration was further enhanced to automatically identify, realize, and verify bills using NACH credit data, reducing manual verification efforts and improving data accuracy.
Niva Bupa SHG Enrollment via API
SHG insurance enrollment under the Niva Bupa scheme was integrated with Finacle through realtime API connectivity, enabling autopopulation of data and instant policy generation.
Niva Bupa Super Top Up Insurance Integration (INSPRM)
New health insurance super top up products were integrated with core systems, enabling automated premium debit and simplified enrolment. This facilitated faster customer onboarding and improved operational efficiency.
FD Interest Credit to Other Bank Accounts
The facility for crediting fixed deposit interest to accounts held with other banks was enabled with appropriate validation controls, enhancing customer convenience and minimizing manual processing.
DIGITAL BANKING
In the contemporary banking landscape, seamless digital integration and real-time, data-driven solutions have become the benchmarks for superior customer experience. Indian Overseas Bank remains steadfast in its commitment to delivering a world-class digital ecosystem, ensuring that our customers enjoy intuitive and friction-free banking at every touchpoint.
Our robust network of Alternate Delivery Channels (ADCs) serves as the backbone of our 24/7 service availability, transcending the traditional limitations of brick-and-mortar banking. This digital core is anchored by an expansive chain of high-tech ATMs and Cash Recyclers, complemented by Multifunctional Kiosks and a suite of high-demand services including:
Next-Gen Platforms: Enhanced Internet and Mobile Banking interfaces.
Instant Payments: Seamless NEFT, RTGS, IMPS, and BHIM IOB UPI App.
Merchant Solutions: Advanced PoS ecosystems, Voice-Based QR technology, and IOB Pay.
Mobility & Logistics: Integrated Fastag and digital transit solutions. Our Bank also Launched exclusive Mobile App- IOB Yatra for transit purposes.
As a pioneer in banking innovation, Indian Overseas Bank continues to redefine business scalability through a “Digital-First” philosophy. We have successfully automated the customer lifecycle through sophisticated Do-It-Yourself (DIY) journeys, enabling instant account opening, digitalized lending, and real-time sanctioning of Credit Cards and Para-Banking services.
Having reached significant milestones in our digital transformation throughout FY 2025-26, the Bank is poised to scale new heights in FY 2026-27. Our focus remains on leveraging emerging technologies to deepen customer engagement, optimize digital on-boarding, and ensure that IOB remains at the forefront of Indias digital banking revolution.
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 31.03.2026, the Bank has a network of 3651 Cash Management machines, comprising of 805 ATMs and 2846 Cash Recyclers; of which 2916 are located onsite and remaining 735 located at offsite. The Bank ensures continuous availability of ATM services to customers 24 * 7 with sufficient cash in all its ATMs and Cash Recyclers.
Bank installed 1200 new multifunctional Kiosks and 600 new Cash Recyclers in FY 2025-26. Many additional non-financial services were implemented on the Passbook kiosks making them multi-functional. In addition to passbook printing, customers can also utilize the kiosk for services like Balance Inquiry, Mini Statement, Account Statement over email, General Account inquiry, Savings Bank Account inquiry, Current Account inquiry, Term deposit Account inquiry, Loan Account inquiry, Debit card and Cheque Book request services etc.
Corporate Website
Bank launched a new corporate website on our 90 th Foundation Day i.e. 10.02.2026. The new website has top quality User Interface and User Experience and upgraded infrastructure for high response and performance.
Debit Card and Prepaid Card
Debit Card is a major tool for conducting financial transactions in ATMs, PoS machines and for ecommerce.
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 Accounts including PMJDY/KCC/NRO/NRE and INSTA card customers.
During FY 2025-26 the Bank Introduced 2 new Mastercard variants Master Platinum and World.
Onboarded a new Prepaid Card Service Provider and started issuing no KYC NCMC Cards (only for transit) in Chennai Metro and in Madras Transport Corporation buses.
Introduced Eco friendly Debit Cards for the scheme IOB ECO and Braille Debit card for Visually Impaired customers.
Implementation of Forgot PIN and Re-KYC through ATM
UDIR has been implemented for quicker customer grievance resolution
Our Bank has launched Business Card under Visa brand
Credit Card
Credit Card is a major tool for conducting financial transactions in PoS machines online transactions and ATM cash withdrawals
Bank issues credit card of Rupay and VISA types with card variants Classic, Platinum, Signature and Select.
Bank is now issuing Pre-approved Credit Cards, Fixed Deposit backed Credit Card through customer self-onboarding
Issuance of co-branded secured credit card against Fixed Deposit
Cards are now delivered to Customer Address and Card Activation can be done through SMS.
CC on UPI for Add-on card is enabled for Rupay Credit Cards
PM-Svanidhi Credit Cards are now being issued by the bank
MOBILE BANKING
IOB Mobile Banking App- IOB Connect 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: a. Simple Self-registration without visiting branch. b. Login using Biometric authentication/Face recognition (IOS) for enhanced security and access. c. Set MPIN through Active Debit card details or Aadhaar validation. d. Comprehensive Fund transfer module which covers all channels Intra Bank, IMPS, NEFT and RTGS with cooling period for payee addition e. 360? UPI functionality including Collect request and UPI Lite. f. Facility to add other bank accounts of the customer to view account details and transactions g. Set Standing Instruction/Auto Payment Facility for RDs and Loan Accounts h. Payee sync between Internet Banking and Mobile Banking i. Debit card Apply, Replacement Upgrade and Manage Debit Cards, New PIN Set/Reset PIN and change Old PIN j. ASBA IPO application View and withdraw applied IPO k. Loan repayment and Extensive Bill Payment options. l. Credit Card Bill Payment and Credit card SDK integration m. PMJJBY/PMSBY insurance enrolment n. mPassbook facility available to view & download account statements o. Opening/Closure/Renewal of Deposits p. Deposit opening including 444 days, renewal, pre-closure and closure q. Generate All statements related to your accounts r. Enabling/Disabling AePS transactions s. Mobile Banking application in 11 regional languages t. Scan & Pay Integrated with Mobile Banking u. Complaints/Fraud Reporting v. Add Nominee and view Nominee details to Self-operated Savings Bank Accounts. w. Opening of Step-up RD x. Open government schemes like PPF, APY, PMJJBY and PMSBY y. IOB Suraksha Onboarding z. Shop at your favourite store & buy Clothing, Accessories, Furniture, Electronics & much more with added reward points.
INTERNET BANKING
Currently our bank is in the migration phase to a state of art internet banking features which provide seamless experience to customers.
Major features are Balance Enquiry, Transaction details, Funds Transfer using NEFT/RTGS/IMPS etc, Online Tax and Utility Bill Payments, Top Up of Prepaid Cards, and Credit Card Payments
Internet Banking application available in 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
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.1000 without UPI PIN per transaction.
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.
New enhancements and features made live in FY 2025-26
Migration of UPI financial transactions to upgraded UPI issuer switch version 4.0
Credit Line on UPI as an issuer.
UPI Merchant QR codes made live in 12 Mumbai Metro Line 1 stations.
Launched IOB Yatra mobile app for Mumbai Metro.
Rupay Credit Card on UPI as acquirer in IOB Connect App.
Launched IOB UPI Vyapar application with enhanced features for iOS users.
NCMC Prepaid card recharge through UPI.
Partnered in Pilot Launch of Global Fintech Fest 2025 products.
Integration of dynamic/static QR with Multiple Entities
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 empaneled 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.
1717 merchants have been onboarded for IOB Pay as on 31.03.2026 and during FY 2025-26 about 30 Top Government Departments and Public Sector Undertakings have been onboarded for IOB Pay by the Bank, across different states of the country like Greater Chennai Corporation, ICEGATE Portal of Government of India , GST Portal of Government of India, CBDT Portal of Government of India ,Lucknow Development Authority, Pune Metropolitan Region Development Authority.
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.,
Overall Digital Penetration:
During FY 2025-26, overall, 98.38% of transactions happened through digital channels. Further digital transactions have increased by 28% over the previous fiscal year.
Significant Activities undertaken during FY 2025-26:
1. New user friendly, comprehensive & UPI enable Mobile Banking application IOB Connect launched both in Android and IOS.
2. New State of the Art Corporate Website launched.
3. Customer convenience has been enhanced through 1200 multifunctional kiosk installed with various functionalities including Passbook Printing, Statement Request, Debit Card Services, Cheque Book Services etc.
4. Further strengthened our ATM spread with new Cash Recyclers installed across various locations.
5. New DIY journeys launched in the Credit Card application for customer convenience.
6. Transit Prepaid Card Introduced under NCMC category.
The Digital Way Forward:
The new FY 2026-27 will begin with the upgradation of the functionalities of the existing products to provide new and exciting services to the customers of our Alternate Delivery Channels.
The Bank plans to move to upgrade to the UPI Acquirer Switch, launching of the new and enhanced versions of the BHIM IOB UPI and IOB UPI Vyapar applications and PA/PG integration with UPI.
The IOB Connect Mobile Banking application will be supporting Corporate Mobile Banking in this year.
In this year additional 1069 Cash Recyclers and 450 Passbook Kiosks will be rolled out across all geographies of India for better customer comfort.
Bank will enhance the pre-paid card solution, wherein Prepaid cards can be issued to customers with full KYC in addition to the current No KYC cards. Bank has integrated with several fintech players to provide Secured Credit Card onboarding journeys and providing more offers to the credit card customers.
Out of the total IT budget of the Bank for FY 2026-27, a substantial portion has been earmarked for providing seamless experience in Digital payment solutions and Digitalisation of various Branch products. 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.
ENTERPRISE DATA MANAGEMENT
The Bank has formed a new department on Enterprise Data Management in December 2024 in line with the recommendations of the IBA Steering Committee and in compliance with the Banks Data Governance Policy. The department is entrusted with the responsibility of identifying best practices in data management and providing methodologies to support the implementation of data management initiatives. In addition, EDMD is responsible to govern/facilitate, and ensure the adoption and implementation of data management standards across the Bank.
The Enterprise Data Management (EDM) Department commenced operations in April May 2025. It was assigned the critical task of cleansing the Banks data across 25 identified parameters, grouped under three categories: Customers, Deposits, and Loans. As of 31st May 2025, the total number of pending records stood at 46.73 lakhs. To support this initiative, EDMD, in collaboration with M/s Boston Consulting Group, developed a dedicated Data Quality Index (DQI) utility, which was subsequently deployed in the Banks IOBONLINE.
All branch and Regional Office (RO) users were provided with individual logins to access the DQI utility. A total of 46.73 lakhs records were uploaded to the portal for correction by the branches. By the close of the financial year 2025 26, as of 31st March 2026, 99.25% of the pending records had been successfully corrected, resulting in a significant improvement in the data quality of the Bank.
As the custodian of the Banks Data Governance Policy, the Enterprise Data Management Department (EDMD) facilitates its implementation and ensures compliance with the support of key stakeholders, including User Departments, the IT Department, the Inspection Department, and the Information Security Department. To strengthen oversight and monitoring of data governance, a multitier committee structure was established consisting of Regional Level Data Governance Committee (RLDGC) headed by Regional Heads at the regional level, Sub Level CO Data Governance Committee (SLCDGC) headed by the Senior most GM Credit Vertical at the Central Office and Apex Level Data Governance Committee (ALDGC) headed by the Executive Director at the apex level. Meetings of these committees are conducted periodically monthly, bimonthly, and quarterly, respectively in accordance with the policy framework. This structured governance mechanism has been instrumental in driving continuous improvement in the Banks data quality.
INFORMATION SECURITY
Board approved Information Security Policy, Cyber Security Policy, Data Privacy 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 4.0.1 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 analyse the information security incidents to take preventive and corrective steps with 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
Accreditation with Central Ministries for Government Agency Business Arrangement
During the financial year 2025 26, our Bank has been accredited by the following Central Government Ministries/ Institutions for handling Government Agency Business:
1. Ministry of Housing & Urban Affairs (MoHUA)
2. Controller General of Accounts (CGA)
3. Institute of Government Accounts & Finance (INGAF)
Pursuant to the above accreditations, our Bank has commenced Agency Banking operations for MoHUA with effect from 01.12.2025 and CGA & INGAF with effect from 01.03.2026
Direct Tax Collections:
The Bank is an authorised bank for collection of Direct Taxes. During the FY 2025-26, our Bank has enabled the facility for payment of Direct Taxes through the Payment Gateway (PG) with effect from 16.12.2025. Accordingly, Direct Tax collection facilities are now available in our bank through the following channels:
Internet Banking
OvertheCounter (OTC) mode at all Branches
Payment Gateway (PG) mode
During the year, the bank has handled transactions amounting to Rs.12549.65 crore and earned commission of Rs.1.22 crore.
Indirect Tax Collections:
The Bank is an authorised bank for the collection of Indirect Taxes such as Customs, Excise Duty, and Goods and Services Tax (GST). During the FY 2025-26, Bank has enabled the facility for payment of Customs and Excise duties through the Payment Gateway (PG) with effect from 19.08.2025, and for GST through PG with effect from 17.10.2025.
Accordingly, Indirect Tax collection facilities are now available in our bank through the following channels:
Internet Banking
OvertheCounter (OTC) mode at all branches (for GST)
Payment Gateway (PG) mode
During the year, the Bank handled Indirect Tax transactions amounting to Rs.15,356.18 crore and earned a commission income of Rs.1.06 crore.
Payment of Pension:
The Bank is servicing pensioners belonging to Central Civil, Defence, Railways, Postal, State Civil, TNEB, Chennai Port Trust, TNSTC, Local Fund Audit of Tamil Nadu, and Malaysian Government pension.
Among these, our Centralised Pension Processing Centre (CPPC) disburses pensions for Central Government departments such as Central Civil, Defence, Railways, and Postal, as well as for Pondicherry State Government pensioners. The total number of such pension accounts stood at 33,255 as on 31.03.2026. During the year, the Bank disbursed pension amounting to approximately Rs.1,445.45 crore. Our Bank earned a commission of Rs.3.65 crore during the year.
Other treasuries/Services handled:
The Bank is authorized for collection of revenues on behalf of various State Governments. During the financial year 2025 26, the Bank collected State Government revenue amounting to Rs.6,184.87 crore. In addition, our Bank services the accounts of the Planning Commission and the Department of Telecommunications. The Bank is also conducting Agency Banking business on behalf of the Post Office Department in Tamil Nadu, facilitating Drawing and Deposit operations through 90 branches.
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. Our bank has opened 53124 new small saving scheme accounts during 2025-26.
Our bank has implemented the following 5 Small Saving Schemes during the Fy 2025-26;
1. Kisan Vikas Patra (KVP)
2. National Savings Certificate (NSC)
3. National Savings Recurring Deposit
4. National Saving Time Deposit
5. National Saving Monthly Income Account
During the FY 2025-26, our bank has contributed subscriptions of about Rs.2060.32 crore under small saving schemes
National Pension System:
All branches of our Bank have been enabled for onboarding and subscription under the National Pension System (NPS). During the financial year 2025 26, the Bank opened 25,981 new NPS accounts, significantly surpassing the target of 15,000 accounts allotted by the Pension Fund Regulatory and Development Authority (PFRDA). Our bank has achieved 124% and 117% target allotted by PFRDA in Triple E Campaign (20.05.2025 to 31.07.2025) and NPS Diwas NPS Zaruri Hai campaign (16.09.2025 to 18.10.2025) respectively.
Government Business Cell
The Bank has established 23 Government Business Cells (GBCs) across all major State capitals with the objective of augmenting Government business.
During the financial year 2025 26, the GBC teams successfully mobilised Government business amounting to Rs.4,369 crore.
HUMAN RESOURCE DEVELOPMENT
Our Banks greatest asset is our people who deliver consistent Business growth. Bank is having around 21000+ employees who are nurtured to deliver excellent Customer Service and ensure Customer Delight.
To achieve this objective, Bank has taken various HR Initiatives focused on Manpower Optimization, Capacity Building, Human Capital Development through Learning & Development and Leadership Development, Employee well-being and inclusive workplace environment.
1. Recruitment & Staff strength
The Banks staff strength stood at 21034 comprising 13022 Officers, 6705 Clerks and 1307 Sub-staff as of 31st March 2026.
During the year 2025-26, we recruited 390 Local Bank Officers through Banks own process and 246 Probationary Officers, 40 Specialist Officers in JMG Scale I through the IBPS Common Recruitment Examination for all PSBs. Apart from above, 178 Customer Service Associates have joined the services of our Bank through IBPS Common Recruitment Process (CRP) XIV. Also, 1 Officer through Lateral recruitment has joined the services of our Bank.
Of the total staff strength, 4053 members belong to SC category, 1567 to ST Category, and 7292 to OBC Category. Staff Strength includes 7803 Women employees, 715 Ex-servicemen and 531 physically challenged members.
2. Motivation
Mentoring
Our Bank has kicked off a Mentoring Initiative for our Probationary Officers in Scale I. This initiatives major objective is to guide, mentor and support the new probationary officers. Mentors are well experienced faculty members who will be assisting them and clarifying their doubts on an ongoing basis for a period of 2 years. Bank has taken this initiative to ensure that the new Probationary Officers feel comfortable and are guided in the new Banking environment. Our initiative is well appreciated by our regulators/stakeholders.
Project Lakshya HR Transformation
Bank has started a flagship digital HR transformation project “LAKSHYA” with the objective of aligning with industry trends and enhance performance of employees, in FY 2024-25.
As part of HR Transformation Phase II, The Bank implemented a comprehensive & very scientific Digital Performance Management system which is objective, system generated and also developmental. In the 2nd year of the program, the focus was to build on Capacity Building, Learning & Development and Leadership Development. The solutions introduced under this initiative focussed on:
Training right skills for the right people
Grooming future leaders
Employee Wellbeing
Social Connect among employees
The digital transformation of Human Resource (HR) functions in IOB marks a critical step towards enhancing efficiency, identifying future leaders, and improve employee satisfaction.
Bank has trained 250 future leaders through a nine-month extensive leadership development program with live projects.
One-to-one coaching sessions were conducted as part of their Leadership programme.
To create awareness among employees about the Banking Industry, we have developed a feature in our employee portal which showcases the Day-to-Day news on Banking Industry.
Health Survey was conducted to assess the well-being of the employees and the bank has provided necessary assistance for those who were in need. It helps to ensure that employees are Healthy and Happy.
In conclusion, these digital tools in our Banks HR systems not only improve knowledge but also foster a more engaged, productive and satisfied workforce. This holistic approach will help our bank to remain competitive, agile, and future-ready.
3. Capacity Building
In order to plan succession and equip the identified officers for critical positions, Bank has drawn a Policy on “Capacity Building” in tune with RBI guidelines to enhance the knowledge of 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.
Our Bank has signed Memorandum of Understanding with Indian Institute of Banking & Finance for a Customized Certification Program on MSME in Banks through e-learning mode for all staff members in FY 2025-26.
Also, we have included courses on Artificial Intelligence as employees need to be aware of AI, which will transform Banking of the future.
4. Reward and Recognition
Our Bank has upgraded the reward and recognition system by crediting reward points to the top performers on a quarterly basis. The accumulated points shall be redeemed by our employees for External/Overseas Training, Promotions, Transfers etc. This encourages employees to perform better consistently.
Bank has conducted special training programs for the winners of FAB 50 campaign for 71 top performers, Super 88 campaign for 255 top performers and Golden League Champions campaign for 77 top performers.
5. Ethics Policy
An Ethics policy is in place covering all the employees of the Bank, to create a culture of Ethical conduct and cooperation among the employees in respect of public conduct, communications within the Bank, interactions with external entities including the media and dealing with colleagues.
The policy defines the standards of conduct that is expected of all employees in order that 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 an annual basis.
6. Job Family
Job Family framework for Officers has been created which comprises of 14 distinct families. The same was arrived at after grouping similar nature of tasks/ business verticals and related Depts./ cells/ areas etc. under one family as part of HR Transformation project in order to provide distinct career paths to officers and help officers & Bank plan Career movement & Skill development of officers better.
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 so grouped/ classified.
7. Training
Keeping in view of the corporate goals and making the bank a customer centric one, training has been imparted on contemporary issues of banking apart from core banking areas through the internal and external mode.
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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 and Vigilance. Also, Programmes for First Line and Second Line Managers were conducted through offline modes.
Pre-Promotion Training for SC/ST/OBC/PH members who are eligible for promotion from Sub Staff to Clerical cadre, Clerk 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 at Chennai and Twelve Staff Training Centres (STCs) spread out across the country. The statistics of Internal Trainings imparted for the FY 2025 26 is furnished hereunder:
| Particulars | Officers | Clerical | Sub staff | Total | SC (Out of Total) | ST (Out of Total) |
| Training imparted to Individual Staff members (irrespective of no. of trainings attended) | 12119 | 6793 | 1168 | 20080 | 3923 | 1522 |
| Training imparted during FY 2025 26 (based on total no. of trainings attended by members) | 25622 | 13797 | 2107 | 41526 | 8582 | 3513 |
External Training
We had also deputed 4233 Executives/Officers/Customer Service Associates for training programmes conducted by reputed external institutes like IDRBT Hyderabad, NIBM Pune, Administrative Staff College of India (ASCI)-Hyderabad, Centre for Organization Development(COD), College of Agricultural Banking (CAB) Pune, Reserve Bank of India (RBI), Wrights Training and Consulting LLP, State Bank Institute of Leadership (SBIL), Centre for Advanced Financial Research and Learning (CAFRAL) Mumbai, Indian Banks Association(IBA), Centre for Advanced Financial Research and Learning (IIBF), Bankers Institute of Rural Development (BIRD), Indian Railways Institute of Transport Management (IRITM), Central Vigilance Commission (CVC), Fixed Income Money Market and Derivatives Association of India (FIMMDA), Indian Bank, National Academy of Human Resource Development (NAHRD), National Academy of RUDSETI, National Critical Information Infrastructure Protection Centre (NCIIPC), Union Bank of India, Water.org, Xavier School of Management (XLRI) Jamshedpur.
Apart from the general and selected training programs, 97 Executives/Officers have been trained on various Leadership Development Training Programs by reputed training institutes like NIBM, XLRI Jamshedpur, S.P Jain Institute of Management etc.,
Also, our Bank has entered into an MoU with Indian Institute of Management Kozhikode (IIMK) to offer learning initiatives aimed at enhancing the professional capabilities of our future leaders.
E-Paatashala Online e-Learning portal:
E-Paatashala was made available for all the staff members in our Banks online module consisting of 85 modules on various areas like Credit, NPA, Treasury, Foreign Exchange etc., during the FY 2025 - 26. 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 8458 employees completed all SIX Mandatory modules (out of 85 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 areas are grouped in various categories related to Facilities, Behaviour, Allowances etc.
These grievances are being redressed at two levels - Regional Office and Central Office. The complaints are escalated to the next level in a time-bound manner and redressed accordingly.
INDUSTRIAL RELATIONS
The Industrial relations environment in the Bank remained cordial and conducive throughout the year for achieving organizations objectives.
In order 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 ensure 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 and circulars on the same are issued 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, improvements were made to Staff Housing Loan Scheme with an increase in the quantum of loan, reduction in interest rate and increasing the age limit for repayment of loan.
Enhancements were also made to the rentals of Leased Accommodation payable to Supervisory Staff, covering all the Centres. Officers under Probation were also made eligible for Leased Accommodation Facility.
Increase was also made in the reimbursement of Hotel Expenses to Officers who travel on duty.
Further, improvements were made in availment of PF Loan by staff members with the process of applying and sanctioning
Similarly, credit of welfare benefits like Annual Medical Aid, Well being expenses, Yearly Eye-checkup etc. have been made through Straight Through Processing thereby ensuring instant benefit to the employees.
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. Bank has zero tolerance policy regarding any complaint received under POSH and Internal Committee takes care of any such complaint on priority basis.
Industrial Disputes/Court Cases filed by staff members before various Courts including those before Assistant Labour Commissioner are closely monitored and efforts are taken to settle/get the Court cases disposed off expeditiously.
CONDUCT AND DISCIPLINARY ACTION CELL
Disciplinary Proceedings
During the Financial Year 2025-26 due to effective steps taken for disposal of disciplinary cases, we have disposed off 647 cases.
Cases are being closed with average TAT of 160 days, well within the TAT of 270 days stipulated by CVC.
Utmost priority is being given to complete the disciplinary proceedings where the members are under suspension.
Enquiry proceedings are being conducted through Digital modes like Webex, Video conferencing etc., wherever physical presence is not necessary, to speed up the Disciplinary proceedings.
Bank has conducted training for all Inquiring Authorities and Presenting Officers and necessary materials, handbooks were provided to all IAs and POs and directions were given for smooth conduct of Inquiry process. An exclusive DA cell is functioning with a DGM as Disciplinary Authority for disposing the cases involving members upto Scale III, for speedy disposal of cases.
Disciplinary Authorities have been sensitized to complete the Disciplinary proceedings within the stipulated time.
COMPOSITION OF SC/ST/OBC EMPLOYEES
| Category of posts | Total No. of employees As on 31.03.2026 | No of SCs | % of SCs | No of STs | % of STs | No of OBCs | % of OBCs | No of Gen | % of Gen |
| Officers | 13022 | 2241 | 17.21 | 1177 | 9.04 | 4408 | 33.85 | 5196 | 39.90 |
| Clerk | 6705 | 1312 | 19.57 | 347 | 5.17 | 2428 | 36.21 | 2618 | 39.05 |
| Sub-Staff | 1192 | 451 | 37.83 | 40 | 3.36 | 411 | 34.48 | 290 | 24.33 |
| Sweeper | 115 | 49 | 42.61 | 3 | 2.61 | 45 | 39.13 | 18 | 15.65 |
| Total | 21034 | 4053 | 19.27 | 1567 | 7.45 | 7292 | 34.67 | 8122 | 38.61 |
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 by Chief Liaison Officers and Department of Financial Services. Roster Register for the Calendar year 2024 have been verified by Ministry of Finance, Department of Financial Services, New Delhi and have been uploaded online in our IOB website (www.iob.bank.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 SC/ST 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.
Quarterly meeting with the majority OBC 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 for welfare and upliftment of the Scheduled Castes & Scheduled Tribes. Further, 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 loans up to Rupees Five Crores.
SECURITY
The Chief Security Officer at central office is responsible for overall supervision of security aspects of all Branches, ATMs, Currency Chests and Administrative Offices.
Security is an ongoing process intended to protect treasure, staff, assets and customers from any kind of physical threats. The Department puts in efforts to ensure preventive security measures regularly. 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 inculcation of fire prevention and security consciousness among staff to ensure safety to life and property. The Regional Security Officers on their inspection of Branches make it a point to brief the staff members about the latest modus operandi used by the miscreants, preventive measures to be initiated to prevent fire and security risks.
The following measures were initiated during the year to enhance the support systems provided to Branches as preventive and deterrent action.
a) All Staff members have been educated regarding security awareness.
b) All the Branches were provided with two new Portable fire extinguishers along with the existing fire extinguishers for fighting all classes of fire.
c) The existing Burglar Alarm System at Branches have been replaced with Smart Integrated Fire cum Burglar Alarm System with features of intimating the staff members in case of exigencies.
d) CCTV systems at all Branches are being upgraded from DVR based systems to NVR based CCTV system.
e) The Security gadgets viz., CCTV and Alarm system are installed and functioning 24?7?365 days.
f) Outsourced Watchmen/Armed Guards are provided at vulnerable ATMs and branches, on case-to-case basis. g) Outsourced fortified cash vans with two armed guards for safe transporting of cash have been provided to the Regions wherever requested. The performance of Cash Van is reviewed by Security Department at Central Office.
At Central Office, the following aspects are covered:-
a) In addition to supporting Regions for provision of safe and secure environment for functioning of Branches, all safety measures are followed in high rise buildings within Central Office complex. b) All the staff and outsourced staff working at Central Office have been briefed about the fire safety measures to be ensured at their respective offices by means of floor wise fire safety lectures, followed by evacuation, assembling at their assembly points and a hands-on experience of using the portable fire extinguishers. c) The Central Office ensures availability of budget for the Regions to provide the necessary security gadgets to all its Branches. d) In an event of fire or crime against Bank, Department ensures that the incident is reported to law enforcement agencies, investigated and taken to its logical end.
A conclave of all Regional Security Officers (RSO) pan India was conducted at the staff college, wherein all the RSOs attended the sessions on various security parameters including gadgets, safes and strong room doors, procedures to be followed during various exigencies, modus operandi of crime against Banks. The conclave was utilized for sharing of information with regards to the security features adopted by Banks in different parts of the country.
A safe and secure environment for banking is being ensured by the Security department with involvement of the staff at all levels and deployment of all necessary security apparatus.
OFFICIAL LANGUAGE
The Bank has taken all efforts to implement the Official Language Policy of Government of India during the FY 2025-26. 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 conducted an All India Official Language Conference and Seminar for our Official Language Officers on 21st and 22nd July 2025 in Delhi. The said program was chaired by our MD & CEO and Ms. Anshuli Arya, Secretary, Ministry of Home Affairs, Govt. of India 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 at the said conference.
Our Bank received the prestigious ‘Rajbhasha Kirti First Prize from the Ministry of Home Affairs, Government of India for Financial Year 2024-25, as a certification of the efforts made by our Bank towards the implementation of Official Language, which was received by Sri Ajay Kumar Srivastava, Managing Director and Chief Executive Officer of the Bank. We would like to mention that our Central Office secured the First Prize towards the implementation of Official Language from
Department of Financial Services (DFS), Govt. of India for FY 2024-25. Also, Our Central Office has been awarded First Prize towards the implementation of Official Language from
Town Official Language Implementation Committee (TOLIC), Chennai for FY 2024-25. We are pleased to mention that our 52 Regional Offices out of our total 53 Regional Offices along with Branches have received awards from respective TOLICs. Till now, this number is highest ever in the any Financial Year for TOLIC prizes. Our 25 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 conducted inspection of Regional Office Guwahati, Regional Office Bangalore, Regional Office Mysuru, Regional Office Dehradun, Regional Office Kolkata-2, Regional Office Lucknow, Regional Office Varanasi and Regional Office Ludhiana on various dates. The said committee expressed satisfaction over the implementation of Official Language in the said centre. Also, Drafting and Evidence Committee of Parliamentary Committee on Official Language inspected our Regional Office Kolkata-1, Regional Office Pondicherry, Regional Office Ernakulam, Ariyalur Branch (Tanjore Region), Allapuzha Branch (Ernakulam Region) on various dates and the concerned committee expressed satisfaction over the implementation of Official Language in the respective offices and branches.
Our Bank is dedicatedly doing publication work for conservation of literature in Hindi and providing good content to staff members to enrich their knowledge. In this connection, we published a seminal book ‘ , containing distinguished work/ contribution of Stalwart Writers compiled from all the states, who have done stellar for promotion of literature. The said book was inaugurated by Central Home & Co-operation Minister Honourable Shri Amit Shah Jee on 26th June 2025 during the Diamond Jubilee Celebrations of Official Language Department at Bharat Mandapam, New Delhi. We have also published another path breaking book ‘ , containing a compilation of relevant topics/articles which were written by experts in their domain. The said book was also inaugurated by Central Home & Co-operation Minister Honourable Shri Amit Shah Jee on 14th September 2025 during the 5th All India Official Language Conference & Hindi Day at Mahatma Convention Centre, Gandhinagar, Gujrat.
The Bank has conducted Hindi competitions in all Regional Offices and Central Office on the occasion of Hindi Day Celebrations-2025. An All-India Hindi Essay Writing competition was held on 15th September 2025 for our staff members. The Bank has also conducted inter-bank All-India Hindi Essay Writing competition in February 2026 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“ -4”. On 10th January 2026, 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 90th Foundation Day celebrations on 10th February 2026. Bank also observed International Mother Language Day on 21st February 2026, on that day various Hindi language competitions and seminars were conducted by Regional Offices.
Our Bank has introduced cash incentive scheme for staff members, who have been doing excellent work in implementation of Official Language since January 2021. Under this scheme, staff members who have excelled in the Official Language perfomance are being given an incentive of Rs.1,000 and there is a provision to confer certificates 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 every half year. During FY 2025-26, a total of 622 staff members were awarded cash incentives and certificates under this scheme.
STATUS OF IMPLEMENTATION OF IND AS IN OUR BANK
As per Reserve Bank of India (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 March 22, 2019, has deferred the implementation of Ind AS for all Scheduled Commercial Banks until further notice. However, RBI requires all banks to submit Ind AS proforma financial statements on a half-yearly basis. In line with this directive, a Project Steering Committee (PSC), headed by an Executive Director, has been constituted to monitor the implementation of Ind AS in the Bank. The Bank is regularly submitting Ind AS proforma financial statements to RBI on a half-yearly basis after obtaining approval from the Project Steering Committee.
PSBS REFORM AGENDA EASE
ENHANCED ACCESS & SERVICE
EXCELLENCE
EASE Reforms Agenda was launched in 2018 by IBA under the guidance of DFS. EASE Reforms Agenda focused on bridging operational and capability gaps between public and private sector banks. EASE programme sets a common reforms agenda for public-sector banks every year. EASE aims to foster new-age reforms in Public sector banks (PSBs) to improve profitability, asset quality, customer service and digital capabilities. The Enhanced Access and Service Excellence (EASE) program stressed on data analytics, automation, digitization, technology, asset quality improvement, outcome-centric HR and overall governance. The EASE Reforms Agenda has made significant contribution in increasing performance, transparency and accountability across all the PSBs including in our Bank.
EASE 8.0: 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 8.0 framework introduced for FY 2025-26 with the theme: Risk & Resilience Innovation Socio-Economic impact Excellence
EASE 8.0 focused on below mention action points:
Digital-First Approach: Strengthen digital banking channels to offer seamless, user-friendly services across customer segments.
Enhanced Credit Delivery: Focus on timely and efficient credit support, especially for MSMEs, agriculture, and Retail segments.
Customer-Centric Services: Implement personalized, technology-driven solutions to improve satisfaction and retention.
Operational Excellence: Streamline processes through automation and AI to boost efficiency and reduce turnaround time.
Risk & Compliance: Strengthen risk management and compliance frameworks using advanced analytics.
Sustainability & Inclusivity: Promote green banking and financial inclusion in line with EASE 8.0 goals
The 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 carry out a synchronised coordination between Top Management and Field Level functionaries for effective implementation of the corporate policies, Banks priorities and ensuring achievement of corporate budgets.
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 On boarding:
During the financial year 2025-26, the Bank continued its strong momentum in customer acquisition and successfully onboarded 42.02 lakh CASA customers, as against 39.91 lakh customers onboarded during the previous year. With this, the Bank has onboarded an aggregate of 1.06 crore CASA customers during the last three financial years from
FY 2023-24 to FY 2025-26. As on 31st March 2026, these newly onboarded customers contributed CASA deposits of Rs.32,744 crore, Term Deposits of Rs.37,911 crore, and aggregate deposits of Rs.70,655 crore. Further, these customers contributed to a credit portfolio of Rs.1,08,092 crore, including Housing Loans of Rs.11,165 crore. Overall, the Bank mobilised an impressive Rs.1.79 lakh crore of total business from these newly acquired customers, demonstrating the effectiveness of the Banks customer acquisition strategy, cross-selling capabilities, and growing digital ecosystem
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 in our products and introduced and revamped liability schemes in order to make them more competitive.
Introduction of IOB Eco Savings Account:
During the year, the Bank introduced IOB Eco Savings Account, an environment-friendly and fully digital savings account aimed at promoting sustainable banking practices. The product offers paperless banking with online account opening through VKYC and TAB banking, renewable PVC debit cards, free digital banking facilities, personal accident insurance coverage, and concessions in green financing products such as electric vehicle loans, thereby supporting the Banks ESG and digital transformation initiatives.
Introduction of IOB PARIVAAR Family Savings Scheme:
The Bank introduced IOB PARIVAAR, an innovative family banking proposition comprising three variants namely IOB Adarsh Family, IOB Legacy Family, and IOB Royal Family. The scheme enables family members to maintain Quarterly Average Balance at the group level while enjoying enhanced banking benefits, thereby improving customer convenience, strengthening relationship banking, and promoting deposit retention.
Introduction of IOB PREMIUM Corporate Salary Scheme:
To strengthen the salary account portfolio and augment low-cost deposits, the Bank introduced IOB PREMIUM, targeting high-income salaried customers. The scheme offers enhanced insurance coverage, hospital cash benefits, cyber insurance, higher overdraft facilities, and other premium banking benefits, making the Banks salary offerings more competitive in the market.
Tamil Nadu State Government Salary Package:
During the year, the Bank also launched a special salary package for employees of the Government of Tamil Nadu, offering customized banking solutions with enhanced insurance cover, concessional loan processing charges, overdraft facilities, and other value-added benefits, further strengthening the Banks salary account franchise in its core market.
Central Government Salary Package:
Further, the Bank introduced an exclusive salary account package for employees of the Government of India under Categories A, B, and C, with superior insurance coverage, overdraft facilities, family banking benefits, and premium debit card features, aimed at expanding the Banks presence in the government salary segment and supporting CASA growth.
Introduction of IOB E-FDR Facility in NSE Platform:
The Bank introduced the IOB E-FDR facility on the National Stock Exchange of India platform, enabling trading members, clearing members, and brokers to place electronic Fixed Deposit Receipts as collateral in a secure and paperless environment. This initiative enhances operational efficiency, reduces physical documentation, and opens a new avenue for institutional deposit mobilisation.
Introduction of NRI SB Deposit Variants:
To strengthen NRI deposit mobilisation, the Bank introduced three new variants of NRE/NRO savings schemes with enhanced features and customer-centric benefits, making the Banks NRI product offerings more competitive and aligned with market practices, thereby supporting growth in overseas deposit business.
TAB-Based Current Account Opening for Individuals:
As part of its digital transformation journey, the Bank enabled TAB-based opening of Current Accounts for individual customers through Aadhaar-based biometric authentication, significantly reducing turnaround time, improving customer convenience, and enabling doorstep banking services.
TAB-Based Current Account Opening for Sole Proprietorship Firms:
Further strengthening digital onboarding capabilities, the Bank introduced TAB-based Current Account opening for Sole Proprietorship firms with integrated Aadhaar authentication, PAN validation, GST/Udyam verification, and digital document capture, thereby streamlining onboarding of MSME customers and improving operational efficiency.
Introduction of IOB Step-Up RD Scheme:
The Bank introduced IOB Step-Up RD, a flexible recurring deposit product that allows customers to increase their monthly contributions through multiple top-ups while earning attractive deposit rates. The scheme also offers personal accident insurance and full digital operability through internet and mobile banking channels.
Introduction of IOB Digital Deposit Scheme:
The Bank launched IOB Digital Deposit for new-to-bank customers, enabling end-to-end digital opening of fixed deposits without branch visits. The product offers seamless digital onboarding, secure transactions, and enhanced customer convenience, supporting the Banks digital deposit mobilisation strategy.
PUBLIC RELATIONS
A) Press Release and Electronic Media
Interaction
The Bank in coordination with external PR agency, disseminated 40 Standalone press releases and conducted 25 electronic media interactions garnering around 2000+ coverages across the media.
Media Coverage:
| Print Media | Online Media | Electronic Media | Total |
| 1042 | 1061 | 25 | 2128 |
B) Advertisement, Publicity, and other activities
The Bank has utilized various platforms for Advertisement and Publicity, including Print, Online Advertisement, FM Radio, Chennai Metro Train Branding, Full Bus Branding and wrapping in Chennai, Chandigarh, Punjab, Agra & Kanpur, Mumbai Metro Train Branding, Lalbagh express Train branding, Audio Jingles in Railway Stations, Chennai Central Railway Station branding, outdoor hoardings etc. During the fiscal year, Bank spent Rs.2,86,14,365.26 on Advertisement (Regulatory) and Rs.13,00,48,231.40 on Advertisement (Non-Regulatory) & Publicity.
C) As directed by DFS, the following activities were organized centrally by the Bank:
07th April 2025 Bank has organized an Awareness programme on “Bal Vivah Mukt Bharat Campaign” and pledge was administered by Banks management.
25th April 2025 Bank organized IOB Cybernova “PSB Hackathon Series 2025 Demo Day” at B. S. Abdur Rahman Crescent Institute of Science and Technology, Vandalur, Chennai.
09th May 2025 - IOB Cybernova 2025 Hackathon Grand Finale was held at B. S. Abdur Rahman Crescent Institute of Science and Technology, Vandalur. Our Government Nominee Director, Ms. Neelam Agrawal, IRS, Director, DFS, Banks management, staff and students participated in the event.
25th September 2025 Bank organized Swachhata Hi Seva campaign 2025 event on “Shramdaan and Cleanliness “Ek Din, Ek Ghanta, Ek saath” at Central office where in Banks management had participated.
22nd October 2025 Bank organized Pledge regarding “5th Anniversary of Nasha Mukt Bharat Abhiyaan” and the Pledge was administered by Banks management.
31st October 2025 Bank had organized Pledge taking on “National Unity Day” i.e., Rashtriya Ekta Diwas marking 150th Birth Anniversary of Sardar Vallabhbhai Patel. The Pledge was administered by Banks management.
26th November 2025 - Bank had organized Pledge taking on “Constitution Day”. The Pledge was administered by Banks management.
27th February 2026 The Bank had coordinated with all the Regional Offices regarding Brainstorming sessions in the form of “Post Budget webinar” on Technology, Reforms and Finance for Viksit Bharat.
D) Bank hosted/participated in the following Parliamentary (Lok Sabha & Rajya Sabha) Committee Meetings held during the FY 2025-26
23rd August 2025 - Study Visit of the committee on Education, Women, Children, Youth & Sports at Chennai.
15th August 2025 - Study Visit of the Committee on Empowerment of Women at Tirupati
15th August 2025 - Study Visit Programme of the Public Accounts Committee (2025-26) at Bhubaneswar.
19th September 2025 - Study-visit of the Department-related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice at Chennai.
20th September 2025 - Study Visit of the Committee on Government Assurances, Rajya Sabha at Jaipur (Rajasthan).
04th November 2025 - Study Visit of the Parliamentary Committee on the Welfare of Scheduled Castes and Scheduled Tribes held at Pachmarhi.
14th November 2025 - Study Visit of the Department related Parliamentary Committee Standing Committee on Industry at Hyderabad.
27th December 2025 - Study visit of the committee on Estimates at Havelock.
27th December 2025 - Study visit of the Department-related Parliamentary Standing Committee on Industry at Kochi.
29th December 2025 - Study Visit of the Parliamentary Standing Committee on the Empowerment of Women (2025-26) at Thiruvananthapuram.
03rd January 2026 - Study Visit of the Parliamentary Standing Committee on Agriculture, Animal Husbandry and Food Processing at Rameswaram.
03rd January 2026 - Study visit of the Committee on Petitions at Madurai.
06th January 2026 - Study Visit of the Parliamentary Standing Committee on Consumer Affairs, Food and Public Distribution at Puducherry.
07th January 2026 - Study Visit of the Department Related Parliamentary Standing Committee on Commerce at Chennai.
21st January 2026 - Study tour of the Standing Committee on Social Justice and Empowerment (2025-26) at Kochi.
24th February 2026 - Study Tour of the Standing Committee on Finance (2025-2026) at Bengaluru.
24th February 2026 - Study Visit of the Committee on Government Assurance (2025-2026) at Bengaluru.
E) Corporate Social Responsibility
During FY 2025-26, the Bank spent a total of Rs.8.74 Crores on Corporate Social Responsibility (CSR), benefiting about 5,85,083 beneficiaries.
Corporate Social Responsibility (CSR) spent by Bank for the FY 2025 - 26
| S. No. Category | Sanctioned Amount (Exclusive of GST in lakhs) | ST | SC | Beneficiaries OBC | General | Total |
| 1 Education | 163.27 | 5326 | 11242 | 24257 | 18341 | 59162 |
| 2 Empowerment of women & Senior Citizen | 46.21 | 1695 | 3636 | 7796 | 5826 | 18953 |
| 3 Environmental protection and Social Cause | 209.16 | 16324 | 34461 | 74351 | 56226 | 181375 |
| 4 Health care and Sanitation | 54.44 | 1654 | 3491 | 7532 | 5695 | 18370 |
| 5 Protection of Tradition & heritage | 137.86 | 22139 | 46738 | 100854 | 76256 | 245985 |
| 6 Rural Welfare Initiatives and Disaster Management | 79.15 | 1879 | 3881 | 8350 | 6313 | 20423 |
| 7 Skill Training/Apprenticeship Training & Skill Development | 67.54 | 1218 | 2571 | 5548 | 4195 | 13530 |
| 8 Sports | 96.92 | 782 | 1651 | 3561 | 2693 | 8685 |
| 9 Technology and Research | 8.39 | 1216 | 2565 | 5535 | 4185 | 13500 |
| 10 War Veterans and Charity | 12.00 | 459 | 969 | 2091 | 1581 | 5100 |
| Grand Total | 874.94 | 52692 | 111205 | 239875 | 181311 | 585083 |
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.
The Banks total subscriber base has crossed the 30-Lac mark and now stands at 30.46 lakh as of 31st March 2026.
| S. No. Platform | As on 31.03.2025 | As on 31.03.2026 | Increase Over 31 March 2025 | Growth % Over 31 March 2025 |
| 1 YouTube | 842294 | 1512616 | 670322 | 79.58 |
| 2 Facebook | 352958 | 757668 | 404710 | 114.66 |
| 3 Instagram | 273139 | 602472 | 329333 | 120.57 |
| 4 X (Twitter) | 56914 | 88152 | 31238 | 54.89 |
| 5 LinkedIn | 41039 | 53142 | 12103 | 29.5 |
| 6 Threads | 12933 | 32312 | 19379 | 149.84 |
| Total | 1579277 | 3046362 | 1467085 | 92.90 |
The Banks subscriber base crossed the 3 Million Mark as per Boards directive, with subscriptions reaching 30.46 lakhs, a 92.90% increase over March 31, 2025 figures.
? 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 visibility.
? During FY 2025-26, 736 posters/flyers/videos were posted on social media and 1,629 customer complaints received through social media were meticulously attended and resolved within 48 hours.
CALL CENTRE & LEAD GENERATION
The Bank operates an outsourced Customer Contact Centre with TollFree inbound services to handle customer requests, queries, and complaints. The services are delivered through dedicated Customer Service Associates (CSAs) on a 24?7?365 basis, ensuring timely redressal and registration of customer issues. Customers are also provided with self-service facilities through an Interactive Voice Response (IVR) system.
To further enhance customer experience,a Next-Generation Contact Centre was operationalized from June 2025, leveraging the latest AI-enabled technologies and omnichannel capabilities, with a focus on improving service quality and achieving EASE metrics.
Key Services Offered
1. Inbound Services
TollFree Numbers: 1800 425 4445 and 1800 890 4445
2. Outbound Services
SMA Recovery
Lead generation calling and followup
Calling customers of inoperative accounts to make them operative
3. Campaign Calling
4. Voice Blast Services
5. AI-based Chatbot Services
Lead Generation
The Contact Centre actively supports the Banks business growth through structured lead generation activities. Customer outreach is undertaken based on real-time leads available in the Banks CRM system, as well as lead data shared by various vertical departments.
Leads are generated from multiple sources, including:
CIBIL triggers
IVR interactions
Banks Website
Social Media platforms
Contact Centre-generated interactions
All leads are duly tagged in the Banks CRM system and made available to the Contact Centre in real time. Customer Service Associates are connected through an automated dialler system to contact customers, identify eligible business opportunities, and seamlessly route qualified leads to the respective branches through the CRM platform for further business conversion, as per customer requirements.
AI - Enabled Chatbot Application IOB BUDDY
The Bank has successfully launched an AI-powered Chatbot application on its official website. The Chatbot functions as a virtual assistant, designed to support customers by addressing queries, guiding them through banking processes, and facilitating select service transactions in real time.
Salient Features
Automated responses for a wide range of banking products and services
Select accountrelated services, including: o Account balance enquiry o Last five transactions o Account statement generation o ATM card blocking o Loan requests
Facility for customers to initiate live chat with Call Centre agents through the Chatbot interface
24?7 availability for instant support beyond regular banking hours
Reduction in operational load on human agents by effectively handling repetitive and routine queries
Compliance with RBI/TRAI Guidelines on Outbound Calling
In compliance with RBI and TRAI guidelines for prevention of financial frauds perpetrated through voice calls and SMS, the Bank has implemented the prescribed numbering series for outbound calls. As per RBI Circular Ref. No. RBI/202425 CEPD CO.OBD.No.S1270/5001001/202425 dated 17.01.2025:
Promotional voice calls are prefixed with the140xx series
Transactional and servicerelated calls are prefixed with the 1600xx series
The Bank completed the required implementation within the stipulated timeline, i.e., on or before 31.03.2025, and procured the following numbers:
Transactional & Service Calls:1600 118 119, 1600 300 418, 1600 118 119, 1600 318 418
Promotional Calls:140 9686 440 to 140 9686 469
Digital Presence
Comprehensive Contact Centre information has been made available on the Banks official website under the Customer Care menu, ensuring easy access for customers.
OUTLOOK FOR BANKING SECTOR
The Indian banking sector enters FY 2026-27 on a strong footing, supported by healthy capitalisation, improved asset quality, strong profitability, and sustained credit demand across Retail, Agriculture, MSME, Infrastructure, and Services sectors. Indias strong economic fundamentals, rising investments, infrastructure-led growth, digital adoption, and increasing financial inclusion are expected to create significant business opportunities for the banking sector.
At the same time, the sector may continue to face near-term pressure on Net Interest Margins (NIMs) due to transmission of policy rate cuts by the Reserve Bank of India on repo-linked loan portfolios and competitive pressures in mobilising low-cost deposits. Further, with Sheduled Commercial Bank credit growing by 13.8% year-on-year outpacing deposit growth of 10.8% year-on-year as per latest data, banks are expected to intensify focus on granular deposit mobilisation, digital banking, salary accounts, product innovation, and operational efficiency.
With strong capital buffers, improved risk management practices, accelerated digital transformation, and continued regulatory support, the Indian banking sector remains well-positioned to navigate near-term challenges and support the countrys long-term economic growth.
| For and on behalf of the Board of Directors | |
| Place: Chennai | Ajay Kumar Srivastava |
| Date: 21.05.2026 | Managing Director & Chief Executive Officer |
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
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