IOB offers a range of banking and financial products and services to individuals, small and medium-sized enterprises, and large corporations. These include savings accounts, current accounts, retail products, Indian Overseas Bank cards, term deposits, and third-party insurance. The bank also provides corporate and rural banking services, such as micro, small, and medium enterprise schemes and merchant banking.
IOB has a strong presence in India, with a network of branches across the country, and also operates in other countries, including Singapore, Hong Kong, Sri Lanka, and Thailand. As of March 2022, IOB has 3,269 domestic branches, Digital Banking Units, and foreign branches and representative offices. IOB was one of the 14 major banks nationalized by the Indian government. In February 2024, Indian Overseas Bank reached ₹1 lakh crore in market capitalization, becoming the fifth public sector lender to reach this milestone
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Latest Bank Update: Will Indian Overseas Bank, Central Bank of India, and Bank of India Merge with SBI and Canara Bank?
The Indian government is planning a major overhaul of the country’s banking system by merging smaller public sector banks with larger ones. Finance Minister Nirmala Sitharaman emphasized the need for a world-class banking system, with the goal of expanding Indian banks to become among the top global banks. The proposed mega-merger plan aims to create larger, more reliable public sector banks. Except for the State Bank of India, Canara Bank, Punjab National Bank, and Bank of Baroda, all other banks in the country could be merged.
Sitharaman stated that discussions have begun with banks to determine how they wish to proceed with the merger. The Reserve Bank of India is also being consulted to gather their views on creating larger banks. According to media reports, the second phase of the merger plan may involve merging Indian Overseas Bank, Central Bank of India, Bank of India, and Bank of Maharashtra with larger banks like Punjab National Bank, Bank of Baroda, and State Bank of India.
This is not the first time the government has undertaken bank mergers. In 2017, five associate banks of SBI and Bharatiya Mahila Bank were merged with the State Bank of India. In 2019, Vijaya Bank and Dena Bank were merged with Bank of Baroda, and in 2020, Oriental Bank of Commerce and United Bank of India were merged with Punjab National Bank.
The merger is expected to have significant implications for both employees and account holders. While banking deposits, fixed deposits, interest rates, loans, and other services will remain unaffected, account holders may need to obtain new passbooks, chequebooks, and account numbers. Additionally, branch names and addresses may change, requiring customers to visit their bank branches to update their records. Overall, the government’s goal is to create a more robust and efficient banking system that can compete with global banks.
Government to Accelerate PSBs’ Fundraising Efforts with Roadshows Slated for Next Week, Boosting Economy
The Indian government is gearing up to accelerate its fund-raising plans for public sector banks (PSBs) through a series of investor roadshows, starting next week. The Department of Investment and Public Asset Management (DIPAM) will lead the effort, with its Secretary personally participating in the roadshows for Bank of Maharashtra. The goal is to expedite minority stake sales in select lenders, including Bank of Maharashtra, Indian Overseas Bank, Central Bank of India, UCO Bank, and Punjab & Sind Bank.
The roadshows are part of a broader strategy to raise funds for these five PSBs, which are in need of capital to meet regulatory requirements and support their growth plans. The government aims to sell minority stakes in these banks to private investors, which will not only help raise capital but also bring in fresh management expertise and improve governance.
The DIPAM Secretary’s personal involvement in the roadshows highlights the government’s commitment to this initiative. The Secretary will engage with potential investors, showcasing the strengths and growth potential of these PSBs, and addressing any concerns they may have. The roadshows will provide a platform for investors to interact with the bank management and gain a deeper understanding of their business strategies and prospects.
The government’s fund-raising plans for PSBs are ambitious, with a focus on accelerating the growth of these lenders and improving their financial health. The sale of minority stakes is expected to attract significant investor interest, given the potential for long-term returns and the opportunity to participate in the growth of India’s banking sector.
Overall, the launch of the roadshows next week marks an important milestone in the government’s efforts to revitalize the PSBs and put them on a path of sustainable growth. With the DIPAM Secretary’s personal involvement and the participation of potential investors, the stage is set for a successful fund-raising exercise that will benefit both the banks and the investors. The outcome of these roadshows will be closely watched, as it will have significant implications for the Indian banking sector and the country’s economic growth prospects.
Banks are placing early wagers, indicating a corporate credit resurgence may be imminent.
The Indian banking sector is witnessing a resurgence in corporate credit growth, driven primarily by working capital financing and project-linked funding. According to senior bankers, the uptick is modest, but it marks a turn for lenders such as HDFC Bank and Axis Bank, which had earlier slowed their wholesale book due to competitive loan pricing. HDFC Bank’s corporate and other wholesale loan book grew 6.4% year on year and 4.7% on quarter, while Axis Bank’s corporate loan book expanded 20% on year and 11% on quarter.
The pickup in corporate credit comes as yields on government securities have risen, making bank loans more attractive for corporates, especially low-rated ones. The weighted average lending rate on fresh rupee loans of scheduled commercial banks was at 8.75% in August, down from 8.81% a month earlier, making it cheaper for corporates to borrow. Bankers agree that while capex-led demand remains modest, working capital financing and project-linked funding are driving incremental growth.
Public sector banks, such as Punjab National Bank and Bank of India, have also joined the lending rebound, buoyed by a healthy project pipeline and improved corporate balance sheets. Punjab National Bank has total loan sanctions worth ₹1.78 trillion, which are awaiting phased disbursements, while Bank of India reported double-digit growth of nearly 12% on year in its corporate book in Q2.
However, pricing remains a challenge, with corporates seeking loans at unrealistically low rates. Indian Overseas Bank chief executive Ajay Kumar Srivastava said that the issue is not demand, but pricing, as corporates seek loans at around 6%, which is not viable for the bank given its own funding costs. Despite this, the bank has a ₹15,000 crore sanctioned pipeline and expects 12-13% on year growth in its corporate loan book this year, led by manufacturing and PLI-linked sectors.
Overall, the sector-wide uptick in corporate credit growth is expected to strengthen in the coming quarters as sanctioned loans move to disbursement stage and investment activity gradually picks up. Ratings agency Icra has not revised its credit growth estimates for FY26 yet, but expects the cuts in goods and services tax rates to support credit expansion for banks and NBFCs in the near term.
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DFS Secretary says government is on track to finalize IDBI Bank stake sale by end of fiscal year 2026.
The government of India has announced plans to undertake an Offer for Sale (OFS) in five public sector banks. The banks in question are Bank of Maharashtra, Indian Overseas Bank, UCO Bank, Central Bank of India, and Punjab and Sind Bank. The primary objective of this move is to reduce the government’s stake in these banks to below 75%. This development is in line with the government’s previous disclosures regarding its plans to dilute its ownership in these financial institutions.
The OFS is expected to have a significant impact on the banking sector, as it will lead to increased private participation in these banks. By reducing its stake, the government aims to infuse fresh capital, improve efficiency, and enhance the overall competitiveness of these banks. The move is also seen as a step towards consolidating the banking sector and making it more resilient to external shocks.
Meanwhile, Axis Bank’s managing director and chief executive, Amitabh Chaudhry, expressed his bank’s enthusiasm for lending to entities seeking acquisition finance. He noted that foreign lenders currently dominate this segment, and Axis Bank is keen to capitalize on this opportunity. Chaudhry also highlighted the relatively new field of private credit, which offers immense potential for growth.
The private sector lender’s interest in acquisition finance is a significant development, as it indicates a shift in the bank’s strategy towards catering to the growing needs of corporate clients. With the government’s plans to divest its stake in public sector banks, private lenders like Axis Bank are likely to play a more prominent role in the banking sector. As the Indian economy continues to grow, the demand for acquisition finance is expected to increase, and Axis Bank is well-positioned to tap into this opportunity.
Overall, the government’s plan to undertake an OFS in five public sector banks and Axis Bank’s interest in acquisition finance are positive developments for the Indian banking sector. These moves are expected to lead to increased private participation, improved efficiency, and enhanced competitiveness, ultimately contributing to the growth and stability of the economy.
Indian Overseas Bank and Bank of Baroda have reduced their MCLR rates by as much as 15 basis points, paving the way for more affordable loan options.
Bank of Baroda (BoB) and Indian Overseas Bank (IOB) have made significant adjustments to their Marginal Cost of Fund-based Lending Rate (MCLR), slashing it by up to 15 basis points (0.15%). This revision, which cuts interest rates, will make MCLR-based loans more affordable for borrowers at these banks. The timing of this move is notable, as it comes just before the start of the festive season, which begins next week.
The festive season, marked by the beginning of Navratri, a nine-day festival considered auspicious for new beginnings, is often a time when people make significant purchases or investments. The reduction in MCLR by BoB and IOB is likely to boost consumer sentiment and encourage borrowing, as lower interest rates make loans more attractive to potential borrowers.
Furthermore, the recent Goods and Services Tax (GST) rationalization, set to take effect from September 22, 2025, coincides with the start of Navratri. This rationalization aims to simplify and reduce GST rates, making various goods and services more affordable for consumers. The combination of lower MCLR rates and GST rationalization is expected to create a positive festive sentiment, driving economic growth and consumer spending.
The reduction in MCLR by BoB and IOB will apply to various types of loans, including personal loans, home loans, and car loans, among others. Borrowers with existing MCLR-based loans may also benefit from the reduced rates, depending on the terms of their loan agreements. As the festive season approaches, the move by BoB and IOB is likely to be followed by other banks, leading to a more competitive lending environment and increased access to credit for consumers.
Overall, the revision in MCLR by BoB and IOB, coupled with the GST rationalization, is expected to provide a stimulus to the economy during the festive season. With lower interest rates and reduced GST rates, consumers are likely to feel more confident about making purchases and investments, driving economic growth and development.
Indian Overseas Bank presents a scanner as a donation to Tirumala Tirupati Devasthanams
The Indian Overseas Bank (IOB) in Tirupati has made a significant donation to the Tirumala Tirupati Devasthanams (TTD). The bank has gifted a Smith Detection Hi-Scanner machine, valued at Rs 61.72 lakhs, to the TTD. The machine was handed over by IOB Director Chandra Reddy and Regional Manager Sanjay Kumar Jha to TTD Executive Officer J Syamala Rao at the TTD Administrative Building in Tirupati.
The donation ceremony took place on Tuesday and was attended by other officials from the IOB, including Tirumala IOB Manager Mahesh Babu and Marketing Officer Rajasekhar Reddy. The Smith Detection Hi-Scanner machine is a state-of-the-art device that will be used to check raw materials before they are used in preparing Laddu Prasadams and Annaprasadams, which are sacred offerings made to the deity at the Srivari Temple in Tirumala.
The installation of the scanner near the Srivari Temple Ugranam in Tirumala will help to ensure the quality and purity of the ingredients used in the preparation of these sacred offerings. This donation by the IOB is a significant contribution to the TTD and will help to maintain the high standards of purity and quality that are associated with the temple’s offerings.
The IOB’s donation is a reflection of the bank’s commitment to supporting the community and promoting the well-being of the people. The TTD is a prestigious institution that is responsible for the management of the Tirumala temple, which is one of the most famous and revered temples in India. The donation of the Smith Detection Hi-Scanner machine is a significant gesture of support and will help to ensure that the temple’s offerings continue to meet the highest standards of quality and purity.
Overall, the donation of the Smith Detection Hi-Scanner machine by the IOB is a notable contribution to the TTD and will help to promote the well-being of the community. The machine will play a critical role in ensuring the quality and purity of the ingredients used in the preparation of the sacred offerings at the Srivari Temple in Tirumala.
Indian Overseas Bank expands its presence with the launch of a new branch in Palasa
A new branch of the Indian Overseas Bank (IOB) was inaugurated in Palasa, Srikakulam district, on Monday. The branch was officially opened by Ravi Kumar Gupta, Senior Regional Manager (SRM) of IOB’s Visakhapatnam region. Gupta was accompanied by several notable individuals, including Malla Srinivasa Rao, Malla Rameswara Rao, and Doki Rama Rao, among others.
During the inauguration ceremony, Gupta announced that the Palasa branch is the 74th IOB branch in the Visakhapatnam region. He emphasized the importance of the branch in supporting the local economy, particularly the cashew and rice industries in the Kasibugga and Palasa areas. The branch is expected to provide a range of banking services designed to cater to the diverse needs of customers.
The inauguration was attended by various officials, including D. Srinivasa Rao, Chief Manager of the Regional Office, and Kella Trinadha Rao, Branch Manager of Palasa. Additionally, D. Uma Maheswara Rao, Assistant General Secretary of the All India Overseas Bank Employees Union (AIOBEU), was present at the event. The ceremony was also attended by staff members, customers, and retired IOB employees, who gathered to mark the occasion.
The new branch is expected to play a significant role in supporting the local economy and providing banking services to the community. With its comprehensive range of services, the branch aims to cater to the needs of various customers, including individuals, businesses, and industries. The inauguration of the new branch is a notable development in the region, and it is expected to have a positive impact on the local economy and community.
The presence of senior officials and notable individuals at the inauguration ceremony underscores the importance of the new branch. The event was a significant milestone for IOB, and it marks the bank’s continued expansion and commitment to providing banking services to diverse communities. The new branch is expected to provide a range of benefits to the local community, including increased access to banking services, support for local businesses, and job opportunities. Overall, the inauguration of the new IOB branch in Palasa is a positive development for the region, and it is expected to have a lasting impact on the local economy and community.
Among PSU banks, Bank of Maharashtra, IOB, and Punjab & Sind are currently offering the most attractive fixed deposit rates.
For conservative investors seeking secure and attractive returns on fixed deposits (FDs), several public sector banks in India have recently revised their interest rates, making it an ideal time to invest. The Bank of Maharashtra is currently offering the highest interest rate among public sector banks, with 7.15% on 366-day deposits. Other notable banks with competitive interest rates include the Indian Overseas Bank, Punjab and Sind Bank, Bank of India, and Central Bank of India.
The Indian Overseas Bank offers 7.10% on 444-day FDs, while the Punjab and Sind Bank provides 7.05% interest on 444-day FDs. The Bank of India has introduced a special 999-day Green FD at 7%, and the Central Bank of India offers 7% on deposits ranging from two to three years. These rates are significantly higher than what was previously offered, making them an attractive option for risk-averse investors.
The recent revision in interest rates by public sector banks can be attributed to the Reserve Bank of India’s (RBI) decision to cut the repo rate. This has created a favorable environment for investors to lock in higher interest rates for the medium to long term. Fixed deposits remain a trusted investment tool due to their capital safety and guaranteed returns, making them an excellent option for those seeking a low-risk investment.
With interest rates ranging from 6.25% to 7.15%, investors can choose from a variety of tenure options, including one year, three years, and five years. The Central Bank of India also offers special FDs with tenures of 1111 days, 2222 days, and 3333 days, all of which offer a 7% interest rate. Overall, the revised interest rates offered by public sector banks provide an excellent opportunity for investors to earn attractive returns on their investments while minimizing risk.
Among public sector banks, Bank of Maharashtra, IOB, and Punjab & Sind are currently offering the most competitive fixed deposit rates.
For conservative investors seeking high returns on fixed deposits (FDs) from government banks, now is an excellent time to invest. Several public sector banks have recently revised their interest rates, offering attractive returns. The Bank of Maharashtra currently leads the pack, offering a 7.15% interest rate on 366-day deposits. For other tenures, the bank offers 6.25% for one year, 6.3% for three years, and 6.25% for five years.
Other public sector banks are also offering competitive interest rates. The Indian Overseas Bank offers 7.10% on 444-day FDs, while the Punjab and Sind Bank provides 7.05% interest on 444-day FDs. The Bank of India has introduced a special 999-day Green FD at 7%, with regular FD rates including 6.50% for one year, 6.25% for two years, and 6% for five years.
The Central Bank of India also offers 7% interest on deposits ranging from two to three years, as well as on special FDs of 1111 days, 2222 days, and 3333 days. For other terms, the bank provides 6.7% for one year, 6.75% for three years, and 6.50% for five years. Fixed deposits remain a trusted investment tool due to their capital safety and guaranteed returns.
The recent revision in interest rates by public sector banks is a result of the Reserve Bank of India’s (RBI) repo rate cut. This has created an ideal opportunity for risk-averse investors to lock in higher interest rates for the medium to long term. With the current interest rates, investors can secure attractive returns while minimizing their risk. It is essential for investors to compare the interest rates offered by different banks and choose the one that best suits their investment goals and tenure. By doing so, they can maximize their returns and make the most of their investment.
IOB expands its presence with the inauguration of a new branch in Vizianagaram
The Indian Overseas Bank (IOB) has expanded its presence in Vizianagaram by opening a new branch in the Ring Road area. The branch was inaugurated by Ravi Kumar Gupta, Senior Regional Manager (SRM) of Visakhapatnam Region, on Wednesday. Speaking at the event, Gupta highlighted the competitive interest rates offered by IOB, including 7.35% for housing loans and 7.85% for vehicle loans, without any processing fees.
IOB is also providing various types of loans, such as MSME, education, retail, agriculture, and jewel loans, at attractive interest rates. Additionally, the bank is offering a 7.10% per annum interest rate on retail term deposits for 444 days to individuals below 60 years of age. Gupta emphasized that IOB is committed to providing excellent services to its customers and is continuously expanding its network to reach more people.
The Visakhapatnam Region of IOB currently has 72 branches and one RBI Currency Chest at Visakhapatnam. Gupta announced that new branches will be opening soon in Palasa, ALASA, Narasannapeta in Srikakulam district, and S Kota in Vizianagaram district, all of which are expected to be operational before July 31, 2025. The event was attended by several dignitaries, including Chief Manager D Srinivasa Rao, Ring Road Branch Manager Suresh Kondrothu, Vizianagaram Branch Manager Saurav Vishal, and AIOBEU Assistant General Secretary D Uma Maheswara Rao.
The opening of the new branch in Vizianagaram is a significant development for the region, as it will provide access to IOB’s range of financial services and products to the local community. With its competitive interest rates and wide range of loan options, IOB is well-positioned to meet the financial needs of individuals and businesses in the area. The expansion of IOB’s network in the region is expected to have a positive impact on the local economy, promoting growth and development in the area.
IOB slashes lending rate linked to repo by 50 basis points, bringing it down to 8.35%
The Indian Overseas Bank (IOB) has announced a significant reduction in its Repo Linked Lending Rate (RLLR) following a meeting of its Asset Liability Management Committee (ALCO) on Wednesday. The RLLR has been cut by 50 basis points, from 8.85% to 8.35%. This change is set to take effect on June 12, 2025.
The decision to reduce the RLLR was made in response to the Reserve Bank of India’s (RBI) latest Monetary Policy Committee (MPC) meeting, in which the Repo Rate was also reduced by 50 basis points. The Repo Rate is the rate at which the RBI lends money to commercial banks, and a reduction in this rate typically leads to a decrease in lending rates for banks.
The reduction in RLLR by IOB is expected to have a positive impact on borrowers, as it will result in lower interest rates on loans. This could lead to an increase in borrowing and spending, which could in turn boost economic growth. The move is also likely to make IOB’s loans more competitive in the market, which could help the bank to attract more customers.
The reduction in RLLR is a significant development, as it indicates that IOB is committed to passing on the benefits of the RBI’s monetary policy decisions to its customers. The bank’s decision to reduce its lending rates is also in line with the RBI’s efforts to boost economic growth and increase lending in the country.
Overall, the reduction in RLLR by IOB is a positive development for borrowers and the economy as a whole. It is likely to lead to an increase in borrowing and spending, which could help to boost economic growth. The move is also a testament to IOB’s commitment to providing competitive and affordable loan products to its customers. With the new RLLR taking effect on June 12, 2025, borrowers can look forward to enjoying lower interest rates on their loans.
Refurbished IOB Branch Unveiled in Grand Inauguration Ceremony
The Indian Overseas Bank (IOB) has recently renovated its Padipeta branch, located near Tiruchanoor, and the new premises were inaugurated by the bank’s MD and CEO, Ajay Kumar Srivastava. The event took place on Friday and was attended by several dignitaries, including IOB Director B Chandra Reddy, Chief Regional Manager of the Tirupati Region Sanjay Kumar Jha, and Branch Manager V Rameshnath Reddy. The Padipeta branch has been serving the local community for over 11 years and is one of the 46 branches that make up the Tirupati region of IOB.
During the inauguration ceremony, Srivastava emphasized the bank’s commitment to providing customer-centric banking services and modernization. He encouraged customers to take full advantage of the bank’s wide range of services, which are designed to meet their specific needs. The renovated branch is equipped with state-of-the-art facilities, including an ATM and a cash deposit machine (CDM), which were also inaugurated by Srivastava.
The renovation of the Padipeta branch is part of IOB’s efforts to improve its infrastructure and provide better services to its customers. The bank has been working to modernize its operations and expand its reach in the region. With 46 branches in the Tirupati region, IOB is one of the leading banks in the area, and the renovated Padipeta branch is expected to play a key role in serving the local community.
The inauguration of the renovated branch was attended by customers and staff members, who were excited to see the new facilities and services on offer. The event marked an important milestone for IOB in the Tirupati region, and the bank’s management is hopeful that the renovated branch will help to increase customer satisfaction and loyalty. Overall, the renovation of the Padipeta branch is a positive development for the local community, and it reflects IOB’s commitment to providing high-quality banking services to its customers.
Indian Overseas Bank partners with Indian Institute of Banking and Finance through a Memorandum of Understanding
The Indian Overseas Bank (IOB) has partnered with the Indian Institute of Banking and Finance (IIBF) to launch a customized e-learning and certification program focused on Micro, Small, and Medium Enterprises (MSMEs). The Memorandum of Understanding (MoU) was signed on May 18 in the presence of IOB’s CEO and MD, Ajay Kumar Srivastava, and other senior officials from both organizations. The primary objective of this initiative is to enhance the knowledge and skills of IOB employees in understanding the credit needs of MSMEs and responding to them in a timely and effective manner.
MSMEs play a vital role in the country’s industrial economy, and it is essential to support and nurture this sector. The MoU aims to address this need by providing IOB employees with specialized training and certification. As part of the agreement, IIBF has developed a customized courseware in the form of an e-Book, which will be used to conduct a certification exam through a remote proctored mode. Employees who successfully pass the examination will receive a certificate jointly signed by IOB and IIBF officials.
This collaboration between IOB and IIBF is expected to benefit both the bank and the MSME sector. By enhancing the knowledge and skills of its employees, IOB will be better equipped to meet the credit needs of MSMEs, which will, in turn, contribute to the growth and development of the sector. The certification program will also help IOB employees to stay up-to-date with the latest developments and best practices in MSME lending, enabling them to provide better services to their customers. Overall, this partnership is a positive step towards supporting the MSME sector and promoting economic growth in the country.
Comparison of 444-Day Fixed Deposit Schemes: Find out which bank, BoB, Canara Bank, or IOB, offers the highest returns on a Rs 10,00,000 deposit and maximize your earnings with the best FD option
A fixed deposit (FD) is a popular investment option where a lump sum of money is deposited for a fixed period of time in exchange for a predetermined interest rate from banks and financial institutions. This type of investment provides a low-risk and stable return, making it an attractive option for those looking for a safe and secure way to grow their savings.
In addition to traditional FD schemes, there are also special FD schemes available, which are limited-period schemes that offer a higher rate of interest compared to regular FDs. These special schemes are designed to attract investors who are looking for higher returns on their investment, and they often come with flexible tenure options to suit different investment needs.
One of the key benefits of FDs is that they offer a higher interest rate to senior citizens. Senior citizens can earn a higher rate of interest on both regular and special FDs, making them an attractive option for retirees or those nearing retirement. This is a great way for seniors to generate additional income and make the most of their savings.
FDs are a great option for those who want to save for a specific goal, such as a down payment on a house, a wedding, or a big purchase. They are also a good option for those who want to diversify their investment portfolio and reduce their risk. With FDs, investors can choose from a range of tenure options, from a few months to several years, and earn interest on their deposit.
Overall, FDs are a popular and stable investment option that can provide a low-risk and secure return. With the option to invest in special FD schemes and earn higher interest rates, as well as the benefit of higher interest rates for senior citizens, FDs are an attractive option for a wide range of investors. Whether you’re looking to save for a specific goal or simply want to generate additional income, FDs are definitely worth considering. With their flexibility, stability, and attractive interest rates, FDs can be a great addition to any investment portfolio.
Public sector banks shine with surge in gold loans
State-owned banks in India have seen a significant increase in gold loans during the fiscal year 2025, largely due to the rising prices of gold. The country’s largest public lender, State Bank of India (SBI), reported a 53% increase in personal gold loans, reaching Rs 50,011 crore in the quarter ended March 31, 2025. Other public sector banks, such as Indian Bank and Bank of Baroda, also saw substantial growth in their gold loan portfolios, with increases of 81% and 55.6%, respectively.
The growth in gold loans can be attributed to the soaring prices of gold, which rose by over 30% in 2024-25. As a result, customers were able to get a better value for their gold when pledging it for loans. The Loan-to-Value (LTV) ratio, which is the percentage of the collateral’s worth that can be lent, has been fixed at up to 75%, but industry sources say that the average LTV ratio availed by customers is around 67%.
The increasing demand for gold loans has been driven by the fact that they are considered a safe and low-risk form of lending, with almost no non-performing assets (NPAs). Indian Bank’s MD & CEO, Binod Kumar, stated that gold loans have been one of the strong portfolios in India and that the bank expects to grow in this segment by around 20% in the current fiscal year.
Another public sector bank, Indian Overseas Bank (IOB), reported a 45% increase in its cumulative jewel loan portfolio, reaching Rs 69,188 crore in 2024-25. The bank’s MD & CEO, Ajay Kumar Srivastava, attributed the growth to the escalating prices of gold and stated that this segment is going to be one of the major products for the bank.
Overall, the growth in gold loans is expected to continue in the current fiscal year, driven by the rising prices of gold and the increasing demand for safe and low-risk lending products. The public sector banks are expected to benefit from this trend, with gold loans becoming an increasingly important part of their portfolios.
IOB Cybernova 2025 Hackathon Reaches Thrilling Conclusion, Paving the Way for a More Secure Digital Tomorrow through Groundbreaking Authentication Innovations – APN News
The IOB Cybernova 2025 Hackathon Grand Finale, a premier innovation event focused on cybersecurity and authentication, has concluded with resounding success. The hackathon aimed to foster a safer digital future by encouraging participants to develop innovative solutions for authentication. The event brought together talented individuals, startups, and tech enthusiasts to showcase their skills and creativity in addressing the challenges of digital security.
The IOB Cybernova 2025 Hackathon Grand Finale saw participants from diverse backgrounds and age groups come together to develop cutting-edge solutions for authentication. The event provided a platform for innovators to collaborate, learn from each other, and showcase their ideas to a panel of esteemed judges. The hackathon focused on various themes, including biometric authentication, AI-powered security, and blockchain-based identity verification.
The grand finale featured a series of presentations, where participants demonstrated their innovative solutions to the judges. The solutions ranged from advanced facial recognition systems to secure password management tools. The judges were impressed by the creativity, technical expertise, and passion displayed by the participants. After a rigorous evaluation process, the winners were announced, with the top teams receiving prizes and recognition for their outstanding contributions to the field of authentication.
The IOB Cybernova 2025 Hackathon Grand Finale was more than just a competition; it was a platform for fostering innovation, collaboration, and knowledge sharing. The event provided opportunities for participants to network with industry experts, learn from each other’s experiences, and gain valuable insights into the latest trends and technologies in cybersecurity. The hackathon also highlighted the importance of authentication in ensuring a safer digital future, where individuals and organizations can trust the authenticity of online transactions and interactions.
The success of the IOB Cybernova 2025 Hackathon Grand Finale demonstrates the power of innovation and collaboration in addressing the complex challenges of digital security. The event has set a new benchmark for hackathons in the cybersecurity space, inspiring future generations of innovators to develop cutting-edge solutions for a safer digital world. As technology continues to evolve, events like the IOB Cybernova 2025 Hackathon Grand Finale will play a crucial role in shaping the future of authentication and cybersecurity.
IOB Recruitment 2025: How to Apply Online
The Indian Overseas Bank (IOB) has announced a recruitment drive for the position of Local Bank Officers (LBO) under the Junior Management Grade Scale-I (JMGS-I) for the financial year 2025-26. This recruitment drive aims to fill vacancies in various states across India, including Tamil Nadu, Odisha, Maharashtra, Gujarat, West Bengal, and Punjab.
The IOB is a leading public sector bank in India, with a rich history and a strong presence across the country. As a Local Bank Officer, the selected candidates will be responsible for managing and supervising the day-to-day operations of the bank’s branches, as well as providing excellent customer service to the bank’s clients.
The recruitment process will involve a written examination, followed by an interview. The written examination will test the candidates’ knowledge and skills in areas such as English language, numerical ability, reasoning ability, and general awareness. The interview will assess the candidates’ communication skills, personality, and suitability for the role.
To be eligible for this recruitment, candidates must meet certain criteria, including age, educational qualifications, and experience. The exact eligibility criteria will be specified in the official notification, which will be available on the IOB’s website.
The selection process is expected to be highly competitive, and candidates will need to prepare thoroughly to succeed. The IOB will provide detailed information about the recruitment process, including the exam pattern, syllabus, and eligibility criteria, on its website.
This recruitment drive presents an excellent opportunity for young and ambitious individuals to join the Indian Overseas Bank and build a successful career in the banking sector. The IOB offers a competitive salary package, benefits, and opportunities for career growth and development.
Candidates who are interested in this recruitment can visit the IOB’s website to learn more about the eligibility criteria, selection process, and application procedure. They can also contact the bank’s customer service team for any queries or clarifications. The last date for applying will be announced soon, and candidates are advised to apply online well in advance to avoid any last-minute rush. With this recruitment drive, the IOB aims to strengthen its team and provide better services to its customers across the country.
The Reserve Bank of India (RBI) has imposed penalties on Indian Overseas Bank (IOB) and M&M Financial Services Ltd for failing to comply with regulatory requirements.
The Reserve Bank of India (RBI) has imposed monetary fines on Indian Overseas Bank (IOB) and Mahindra and Mahindra Financial Services Limited for non-compliance with RBI directives. The fines amount to Rs 63.60 lakh for IOB and Rs 71.30 lakh for Mahindra and Mahindra Financial Services Limited. The RBI periodically audits the accounts of banks and Non-Banking Finance Companies (NBFCs) and found that both IOB and Mahindra and Mahindra Financial Services Limited did not comply with certain directions.
IOB was fined for non-compliance with RBI directives on loans to the agricultural sector and Micro, Small, and Medium Enterprises (MSMEs). Specifically, the bank failed to obtain collateral security for agricultural loans up to Rs 1.60 lakh in certain cases and for loans up to Rs 10 lakh provided to certain Micro and Small Enterprise borrowers. In India, agricultural loans up to Rs 2 lakh are collateral-free, and loans up to Rs 10 lakhs are collateral-free in the MSME sector.
Mahindra and Mahindra Financial Services Limited was fined for non-disclosure of processing fees and other charges in certain loan application forms, failure to provide copies of loan agreements and loan details to certain borrowers, failure to provide a final chance to certain borrowers to repay loans before the sale/auction of vehicles, and issuing multiple customer identification codes to certain customers instead of a Unique Customer Identification Code (UCIC).
IOB is a public sector bank founded in 1937 and nationalized in 1969. It has overseas branches and offices in several countries, including Singapore, Hong Kong, Thailand, and Sri Lanka. Mahindra and Mahindra Financial Services Limited, on the other hand, is a non-banking financial company established in 1991 and part of the Mahindra Group. It offers various financial services, including vehicle loans, SME finance, and personal loans.
The fines imposed by the RBI are a reminder of the importance of compliance with regulatory directives. The RBI’s actions aim to protect the interests of borrowers and ensure that financial institutions operate in a fair and transparent manner. The fines also highlight the need for banks and NBFCs to review their internal processes and ensure that they are in compliance with regulatory requirements.
After RBI’s Interim Repo Rate Cut, Banks Begin Reducing Lending Rates
In response to the Reserve Bank of India’s (RBI) 25 basis point reduction in the repo rate on April 9, several banks have begun to cut their lending rates, passing on the benefit to their borrowers. Indian Bank was the first to announce a reduction in its repo-linked benchmark lending rate from 9.05% to 8.70%, effective from April 11. Canara Bank is likely to follow suit, with a source indicating that the bank may reduce its RBLR by 25 basis points in a near future meeting. Indian Overseas Bank has already decided to reduce its RBLR by 25 basis points to 8.85%, effective from April 12. This rate cut is expected to lower borrowing costs for customers with loans linked to RBLR, including home loans and business loans. As a result, customers may see reduced equated monthly installments (EMIs) or shorter loan tenures.
The RBI’s decision to cut the repo rate is expected to lead to surplus liquidity, facilitating faster transmission of policy rate cuts. This is in contrast to the February rate cut, when no bank passed on the benefit to customers. Non-banking financial companies (NBFCs) are also considering reducing their lending rates, with Hinduja Leyland Finance’s MD and CEO, Sachin Pillai, stating that the RBI’s move will create opportunities for NBFCs to reduce borrowing costs and pass on benefits to customers in vehicle financing, affordable housing finance, and small and medium enterprise (SME) financing.
The cumulative reduction in lending rates could be up to 50 basis points, with the RBI hinting at another potential rate cut by the end of the fiscal year. The RBI’s Asset Liability Management Committee (ALCO) is expected to meet soon, and a 50 basis point rate cut is possible. This could further reduce borrowing costs for customers, making it a positive move for the economy. The rate cut is a welcome development, especially for sectors that have high credit sensitivity, such as vehicle financing, affordable housing finance, and SME financing. Overall, the move is expected to benefit customers and stimulate economic growth by making borrowing cheaper and more accessible.
Bank of Maharashtra slashes retail loan rates by 0.25% to boost customer affordability
The Bank of Maharashtra (BoM), a state-owned bank, has announced a reduction in its lending rate linked to the repo rate by 25 basis points. This move is in line with the Reserve Bank of India’s (RBI) recent decision to slash key interest rates by 25 basis points to support economic growth. As a result, BoM’s repo-linked lending rate (RLLR) has been reduced from 9.05% to 8.80%.
This rate reduction will make loans more affordable for BoM’s customers, including those availing of home, car, education, and gold loans. The bank’s home loan rates will start from 7.85% per annum, while car loans will be priced from 8.20% per annum, making them among the lowest in the banking industry.
Indian Overseas Bank (IOB), another public sector lender, has also cut its benchmark lending rate in line with the repo rate reduction. IOB’s RLLR has been reduced from 9.10% to 8.85%. Both banks have decided to pass on the rate cut to their customers, making loans more accessible and affordable.
This move is expected to boost economic growth, as lower interest rates make it easier for individuals and businesses to access credit. The rate cuts are also seen as a response to the US imposing reciprocal tariffs, which could impact India’s economic growth. By reducing interest rates, the RBI is trying to support growth and prevent a slowdown.
IOB Loans now feature an updated interest rate
Indian Overseas Bank (IOB) has announced a reduction of 0.25% in its repo-linked lending rate (RLLR) from 9.10% to 8.85%, providing a significant relief to home buyers. This move comes after the Reserve Bank of India (RBI) recently reduced its policy repo rate to support the economy.
The reduced RLLR is expected to result in a lower effective interest rate on home loans, making it more affordable for individuals to purchase or construct homes. The decrease in interest rate will also lead to lower Equated Monthly Installments (EMIs) for home loan borrowers, making it a welcome news for those looking to purchase a property.
IOB’s decision is a positive development in the Indian banking sector, as it indicates that lenders are willing to pass on the benefits of RBI’s rate cuts to customers. The reduced interest rate is expected to boost demand for housing loans, which has been a major constraint in the Indian economy.
The RBI’s move to reduce the policy repo rate is aimed at stimulating economic growth, and IOB’s decision to reduce its RLLR is a response to this. The reduced interest rate will also help to improve affordability for home buyers, which has been a concern in the Indian real estate sector.
In addition to the reduced RLLR, IOB has also revised its home loan interest rate downward by 0.25%. This means that borrowers will now get a better deal on their home loans, with lower EMIs and a more manageable debt burden.
Overall, IOB’s decision to reduce its RLLR and home loan interest rate is a positive development for home buyers in India. The reduced interest rate will make it more affordable for individuals to purchase or construct homes, and is expected to boost demand for housing loans. The move is also in line with the RBI’s efforts to stimulate economic growth, and is a welcome relief for home buyers in India.
Indian Overseas Bank Cuts Repo-Linked Lending Rate to 8.85% Post RBI Rate Reduction
Indian Overseas Bank (IOB) has announced a 25 basis points reduction in its Repo Linked Lending Rate (RLLR), effective immediately. The new rate stands at 8.85%, down from 9.10%. This move comes after the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) decision to reduce the Policy Repo Rate from 6.25% to 6%. The rate cut is a response to rising global economic uncertainties, particularly the United States’ announcement of 27% tariffs on Indian imports. The bank’s Asset Liability Management Committee (ALCO) convened on April 11 and decided to pass on the benefit of the reduced policy rate to customers. The revised rate structure aims to enhance credit affordability and encourage economic activity during a time of global economic flux.
IOB’s decision aligns with its policy of promptly responding to monetary policy changes and supporting borrowers with reduced interest burdens. The bank’s move is a step towards easing the financial burden on customers and encouraging them to borrow at a lower rate of interest. This development is significant, as it comes amidst global economic uncertainties and a potential slowdown in economic growth.
The reduction in RLLR will have a cascading effect on other lending rates, such as the Marginal Cost of Funds-Based Lending Rate (MCLR), which is used to determine the interest rates on home and other loans. This move is expected to benefit consumers and corporates alike, making borrowing more affordable and sustainable. IOB’s decision to pass on the benefit of the rate cut to customers is a positive step, as it demonstrates the bank’s commitment to supporting economic growth and promoting credit accessibility.
IOB’s announcement is the latest in a series of rate cuts by public sector lenders in India. The bank joins other state-owned banks such as Bank of Baroda (BoB), which recently cut its lending rates by 25 basis points. The move is seen as a response to the RBI’s rate cut and reflects the bank’s focus on supporting economic growth and promoting credit availability. The rate reduction will also help to increase loan disbursements and boost economic activity, thereby supporting India’s growth momentum. Overall, IOB’s decision to reduce its RLLR is a welcome move, which will benefit customers and contribute to the overall economic well-being of the country.
Indian Overseas Bank slashes its repo-linked lending rate by 25 basis points
The Indian Overseas Bank has announced a reduction in its repo-linked lending rate by 25 basis points, effective immediately. The bank made this announcement on Saturday following a decision by the Reserve Bank of India (RBI) to cut the policy repo rate from 6.25% to 6%. The RBI’s rate cut is seen as a response to the uncertain economic environment, particularly the imposition of a 27% tariff on Indian imports to the US by US President Donald Trump.
The disclaimer said the decision to reduce the repo link lending rate was made by the Asset Liability Management Committee (ALCO) on April 11. The ALCO will now set the repo-linked lending rate of the bank at 8.85%, down from 9.10%. This change is meant to align with the RBI’s new repo rate.
The impact of the change will be seen immediately. This move is in line with the RBI’s goal to lower interest rates to boost economic growth and support a slow-down in industrial output. The RBI aims to stimulate growth by adjusting the key interest rate that banks use to borrow and lend money. The outcome of this adjustment is expected to potentially lead to a drop in lending rates for customers, making it easier for people to get loans and credit.
The change in interest rates will also help the real sector of the economy by addressing liquidity shortages in the key segments. It also demonstrates the government’s efforts to sent capital interest flow to support growth. The policy change is expected to chart a beneficial route for the economy.
According to the bank’s previous records, Indian Overseas Bank is poised to tap benefits stemming from fresh cash flows worsened by the downtrend in interest rates.
Indian Overseas Bank slashes lending rates on repo-linked loans, paving the way for borrowers to reap the benefits
Indian Overseas Bank (IOB) has announced a reduction in its External Benchmark Lending Rate (EBLR) by 25 basis points, effective April 12, 2025. This decision comes in response to the Reserve Bank of India’s (RBI) Monetary Policy Committee’s (MPC) announcement of a 25 bps cut in the repo rate, which occurred between April 7 and 9, 2025. The RBI’s repo rate has been adjusted to 6.00% from 6.25%. The reduction will boost borrowers with loans linked to the repo rate, leading to lower Equated Monthly Installments (EMIs) for home loans, auto loans, and other credit facilities.
IOB’s Assets and Liabilities Management Committee (ALCO) reviewed the RBI’s move before approving the rate revision. The Repo Linked Lending Rate (RLLR) will now stand at 8.85% down from the previous 9.10%. This reduction is expected to ease the financial burden on existing and new borrowers, making credit more affordable. This move is an effort by IOB to pass the benefits of RBI’s policy easing on to its customers, potentially contributing to economic growth and stimulating borrowing activities. The 25 basis points cut in the EBLR is likely to prompt other banks to adjust their lending rates accordingly.
India’s central bank is expected to slash the repo rate on April 9, potentially driving home loan rates down to record lows of under 8%.
The Reserve Bank of India (RBI) is set to announce its first monetary policy for the financial year 2025-26 on April 9, with markets and economists expecting a repo rate reduction of at least 25 basis points. This could lead to a decrease in home loan interest rates, making it an opportune time for those considering a new loan or refinance. Currently, public sector lenders such as Central Bank of India, Union Bank of India, and Punjab National Bank offer interest rates ranging from 8.1% to 8.15% per annum.
Private sector banks like HDFC, Axis, and ICICI Bank have already reduced their interest rates on fresh home loans by 5-10 basis points between January and April. According to RBI rules, banks are required to review interest rates at least once every quarter, and new borrowers may see their rates going down in the coming days.
A 25-basis point repo rate cut could mean home loan interest rates dipping below 8% per annum. For instance, a Rs 50-lakh home loan with a 20-year tenure would attract an EMI of Rs 42,106 with an interest rate of 7.9% per annum, compared to the current EMI of Rs 42,290.
The article provides a breakdown of the cheapest home loans offered by Indian banks, with Central Bank of India and Union Bank of India offering the lowest interest rates at 8.1% per annum. Other public sector banks, such as Bank of India, Indian Overseas Bank, and Punjab National Bank, offer interest rates ranging from 8.15% to 8.25% per annum.
Private sector lenders like HDFC Bank, Axis Bank, and ICICI Bank offer interest rates ranging from 8.25% to 8.75% per annum. Housing finance companies like LIC Housing Finance, Bajaj Finserv, and PNB Housing Finance also offer competitive interest rates, with rates starting at 8.2% to 8.6% per annum.
Westerly Alumni of Indian Overseas Bank reunite for an evening of camaraderie
The Association of Retired Indian Overseas Bank Employees (ARISE) held a special meeting at the IOB Balajipeta branch in Rajahmundry on Thursday. The meeting was organized by retired chief manager Ganji Venkateswara Rao, and retired assistant general manager (AGM) Kottu Venkata Ramana presided over the gathering. Key speakers, including All India Bank Pensioners’ and Retirees’ Confederation (AIBPARC) national deputy general secretary KBG Tilak, emphasized the ongoing efforts of the AIBPARC leadership in advocating for pensioners’ rights. These demands included pension updates, recognition of special allowance in pension and gratuity calculations, bank-funded IBA medical insurance, and consultative status for pensioners’ organizations.
The meeting also honored IOB Retired AGM Kottu Venkata Ramana for his contributions as AGM of Treasury (Foreign) at IOB’s Central Office in Chennai. He retired in February 2025 and has since settled in Rajahmundry. IOB Balajipeta branch senior manager K Pavan Kumar assured the gathering of his support. Retired employees from various locations, including Rajahmundry, Amalapuram, Razole, Kothapeta, Rajanagaram, and Pithapuram, attended the event.
The meeting was covered by local media, and the ARISE team honored Kottu Venkata Ramana with a felicitation ceremony. The event marked an important milestone in the pursuit of pensioners’ rights and recognized the contributions of dedicated employees like Kottu Venkata Ramana. The meeting also served as a platform for retired employees to reconnect and strengthen bonds, as well as to address pressing issues and policy concerns. In conclusion, the meeting brought together retirees and supported the cause of pensioners’ rights, demonstrating the commitment of the ARISE team to advocate for the rights of retired employees.
IL&FS Engineering Receives a Show Cause Notice from Indian Overseas Bank, According to TipRanks
IL&FS Engineering and Construction Company Limited (IL&FS Engineering) has received a show cause notice from Indian Overseas Bank, citing alleged discrepancies in the company’s accounts. The notice is reportedly in connection with a loan facility of ₹1,600 crore (approximately $220 million) provided to the company.
According to reports, Indian Overseas Bank has alleged that IL&FS Engineering failed to comply with the loan agreement, leading to a substantial shortfall in the company’s performance. The bank has demanded a detailed explanation from the company on the utilization of the loan proceeds and has asked for a list of completed and ongoing projects funded by the loan.
IL&FS Engineering, on the other tipRanks
IOB secures board approval to raise Rs 10,000 crore through infrastructure bonds
Indian Overseas Bank has received approval from its board to raise Rs 10,000 crores through the issuance of long-term infrastructure bonds. The funds will be used to finance and refinance infrastructure and affordable housing projects. This move is part of the bank’s strategy to cope with the intense competition for deposits in the current financial year. Other public sector banks, such as Bank of Maharashtra and Punjab National Bank, have also raised funds through long-term infrastructure bonds in recent months.
The funds raised through these bonds can be used only for lending to infrastructure and affordable housing projects, as per Reserve Bank of India (RBI) rules. The maturity period of these bonds must be at least seven years. Long-term bonds are a cheaper source of funds for banks, as the funds raised through these bonds are exempt from regulatory reserve requirements such as cash reserve ratio and statutory liquidity ratio.
The approval to raise funds through long-term infrastructure bonds is a significant step forward for Indian Overseas Bank, which will enable it to support the growth of infrastructure and affordable housing in the country. The bank’s strategy to raise funds through long-term infrastructure bonds demonstrates its commitment to supporting the country’s economic growth and development.
Unlock the Key to Affordable Home Ownership: Say goodbye to high interest rates! Compare the best home loan deals of 2025 and start building your dream home now!
Are you dreaming of owning your own home, but high loan rates are giving you sleepless nights? Worry no more! Many banks are currently offering home loans at very affordable interest rates and EMIs (Equated Monthly Installments). In this article, we’ll help you discover which bank is offering the cheapest home loan option.
Rising interest rates and expensive loans can make home ownership a daunting task. However, several government banks, including Bank of Maharashtra, Central Bank of India, and Punjab National Bank, are offering home loans at attractive interest rates, starting from 8.10% to 10.65%. This can significantly reduce your EMI and make owning a home a more achievable goal.
Here’s a breakdown of the best home loan rates offered by various banks, with rates starting from 8.10%:
* Bank of Maharashtra: 8.10% to 10.65%
* Central Bank of India: 8.10% to 9.95%
* Punjab National Bank: 8.15% to 9.85%
* Indian Overseas Bank: 8.15% to 9.85%
* State Bank of India: 8.50% to 9.75%
* UCO Bank: 8.35% to 10.55%
* IDBI Bank: 8.40% to 12.25%
* Nainital Bank: 8.40% to 11.20%
When choosing a loan, consider factors beyond the interest rate, such as processing fees, loan transfer charges, and bank terms. Some banks, like Canara Bank and Punjab & Sind Bank, are waiving processing fees, which can further reduce your loan costs.
Don’t miss out on this opportunity to own your dream home. Review the list above to find the best home loan option for your needs and budget. Remember to also consider the bank’s terms and conditions before finalizing your decision. Happy home buying!