
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
Latest News on Indian Overseas Bank
Here’s a rewritten version of the line without additional responses:Indian Overseas Bank introduces a seamless account opening experience with Aadhaar-enabled OTP-based services, also offering API-based banking solutions as a Public Sector Undertaking.
Here is a 400-word summary of the content:
Indian Overseas Bank (IOB) is celebrating its 89th Foundation Day by introducing new digital solutions to enhance customer experience and financial efficiency. The two key innovations introduced are Aadhaar OTP-Based Account Opening and API Banking for Seamless Transactions.
The Aadhaar OTP-Based Account Opening process is a digital onboarding facility that allows customers to open a savings account effortlessly via the bank’s web portal. This process adheres to RBI guidelines, ensuring a secure and hassle-free experience. With minimal documentation, customers can open an account, subject to transaction limits. Additionally, customers can convert their limited account to a full-fledged savings account by completing full KYC verification through a face-to-face interaction with banking representatives.
The second innovation, API Banking, is designed for corporate customers, enabling seamless transaction processing. This service allows companies to conduct transactions, including RTGS, NEFT, and intra-bank transfers, directly from their ERP or accounting systems in real-time. IOB provides a secure API gateway, enabling corporates to automate, optimize, and enhance financial workflows, eliminating manual intervention and errors.
The benefits of API Banking include faster transaction processing, reduced manual efforts and errors, and enhanced security and efficiency. IOB is also open to innovative use cases by offering bespoke APIs. According to Ajay Kumar Srivastava, MD & CEO, IOB, the focus remains on delivering seamless, secure, and customer-centric banking solutions, aligning with the commitment to digital transformation.
The introduction of these two services marks a significant step towards a more digital, efficient, and inclusive banking ecosystem. IOB’s continued focus on customer-centric digital solutions reinforces its vision of a digitally advanced and customer-friendly banking ecosystem. The innovations commemorate IOB’s Foundation Day milestone, representing a major step towards a more efficient and customer-centric banking system.
Indian Overseas Bank slashes Repo Linked Lending Rate by 25 basis points
India’s Chennai-based Indian Overseas Bank (IOB) has made a decision to reduce its Repo Linked Lending Rate (RLLR) by 25 basis points (bps). The reduction brings the RLLR down from 9.35% to 9.10%. This move is a follow-up to the Reserve Bank of India’s (RBI) recent Monetary Policy Committee (MPC) meeting, where the Repo rate was also reduced by 25 bps from February 5th to 7th, 2025.
The revised RLLR will be effective from February 11th, 2025. This development is likely to have a positive impact on borrowers, particularly in the housing and personal loan segments, as they will benefit from lower interest rates and reduced EMIs. For savers, this may not be as significant, as the yields on fixed deposits and other deposit schemes may not change proportionally.
The RBI’s decision to cut the Repo rate and IOB’s subsequent reduction in RLLR are part of the country’s efforts to stimulate economic growth. The reduction in interest rates is expected to boost consumption and investment, stimulate economic activity, and create jobs.
However, it is essential to note that the reduction in interest rates is not uniform across the board. Borrowers with longer loan tenures or those with lower credit profiles may not benefit from the reduction in RLLR. Additionally, the reduction in interest rates may lead to a decline in the value of savings and fixed deposits. Banking experts believe that borrowers should carefully review their loan options and consider refinancing to take advantage of the lower interest rates.
Canara Bank, PNB, Union Bank, and other lenders have trimmed their repo-linked lending rates, leading to lower EMI outlays for home loan borrowers.
The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points to 6.25%, its first rate cut in almost two years. In response, several major banks, including Canara Bank, PNB, Union Bank of India, and Bank of Baroda, have cut their repo-linked lending rates by 0.25%. This reduction will benefit home loan borrowers, who will have the option to either reduce their EMIs while keeping the tenure unchanged or reduce their remaining tenure while keeping the EMI amount unchanged.
The repo-linked lending rate (RLLR) is the interest rate at which banks lend money to customers, based on the repo rate set by the RBI. The majority of banks have linked their retail loans to the external benchmark lending rate (EBLR), which is now pegged to the repo rate. Home loan borrowers who opt for a floating rate loan will see their interest rates fluctuate with changes in the repo rate.
The reduction in RLLR will have different implications for old and new home loan borrowers. New borrowers will immediately benefit from the reduction, while old borrowers will receive the benefit as per their interest rate reset cycle. Canara Bank, Bank of Baroda, Bank of India, Union Bank of India, and Punjab National Bank have revised their RLLR rates, with the effective dates ranging from February 7 to 12, 2025. Indian Overseas Bank has also reduced its RLLR by 25 basis points to 9.10%.
The table above summarizes the latest RLLR and lending rate changes by major banks following the RBI’s repo rate cut. Home loan borrowers of these banks will have the option to reduce their EMIs or tenure, providing relief from rising interest rates.
Stock Market Updates of Indian Overseas Bank
Recent Updates
Indian Overseas Bank partners with B.S. Abdur Rahman Crescent Institute to host a cybersecurity hackathon, fostering innovation and expertise in the field.
Indian Overseas Bank (IOB) has signed a Memorandum of Understanding (MoU) with B.S. Abdur Rahman Crescent Institute of Science and Technology (Deemed University) to conduct a Cybersecurity Hackathon. The hackathon is aimed at promoting innovation in the banking and financial sectors and aligns with the Ministry of Finance’s vision to encourage technological advancements and entrepreneurship in banking. The event has been partnered with Ernst & Young (E&Y) as the knowledge partner, providing expert guidance and industry insights to participants.
The hackathon will last several months, during which students will develop AI and ML-driven prototype solutions to address real-world cybersecurity challenges, including digital authentication. The competition will be mentored by academic experts and industry leaders, providing participants with the opportunity to refine their ideas.
IOB’s Managing Director and CEO, Shri. Ajay Kumar Srivastava, emphasized the importance of cybersecurity in the digital era and how the hackathon aims to nurture young talent and create secure banking solutions. The event is expected to conclude in May 2025, with the selection of winning prototypes that demonstrate potential for real-world implementation and entrepreneurship.
This collaboration underscores IOB’s commitment to innovation, digital security, and skill development in the fintech space. By partnering with universities and industry experts, IOB aims to promote technological advancements and entrepreneurship in the banking sector, ultimately enhancing the overall security and efficiency of banking services.
Indian Overseas Bank Partners with B.S. Abdur Rahman Crescent Institute to Host a Cybersecurity Hackathon
Indian Overseas Bank (IOB) has partnered with B.S. Abdur Rahman Crescent Institute of Science and Technology (Deemed University) to launch a Cybersecurity Hackathon. The partnership aims to promote innovation in the banking and financial sectors, aligning with the Ministry of Finance’s goal of promoting technological advancements and entrepreneurship in banking. Ernst & Young (E&Y) will act as the knowledge partner, providing expert guidance and industry insights to participants.
The hackathon will focus on addressing critical problem statements in digital authentication, encouraging students to develop AI and ML-driven prototype solutions to real-world challenges. The competition will span several months, with teams receiving mentorship from academic experts and industry leaders to refine their ideas. The event is expected to culminate in May 2025, with the selection of winning prototypes with high potential for real-world implementation and entrepreneurship.
IOB’s MD & CEO, Shri. Ajay Kumar Srivastava, emphasized the importance of cybersecurity in the digital era, stating that the hackathon is a step towards nurturing young talent and leveraging technology to create secure banking solutions for the future. This partnership underscores IOB’s commitment to innovation, digital security, and skill development in the fintech space. The hackathon is a great opportunity for students to develop their skills and innovation in Cybersecurity, and the bank is confident that the selected prototypes will be implemented in the future. The bank is open to innovation and is working to create a secure digital banking experience for its customers.
The IOB assumes the signature role in the Partnership for Carbon Accounting in Finance.
Indian Overseas Bank (IOB) has become a signatory to the Partnership for Carbon Accounting Financials (PCAF), a global initiative to measure and disclose the greenhouse gas emissions associated with its financed activities. This move aligns with IOB’s vision to integrate sustainability into its core operations and support India’s transition to a greener and more resilient economy. By joining PCAF, IOB will use globally harmonized methodologies for greenhouse gas (GHG) accounting, ensuring transparency and consistency in its emissions reporting, in line with international best practices in the financial industry.
As a public sector bank, IOB’s commitment to PCAF is a significant step forward in promoting responsible banking practices and contributing to India’s efforts to combat climate change. By measuring and reporting GHG emissions, IOB will be able to identify areas for improvement and make informed decisions to reduce its own carbon footprint and support its customers in doing the same.
IOB’s joining PCAF also strengthens its commitment to Environmental, Social, and Governance (ESG) principles, which prioritize social responsibility and sustainability in business practices. The bank’s goal is to play a key role in India’s net-zero journey, driving positive change in the financial sector and contributing to a more sustainable future.
IOB’s MD & CEO, Ajay Kumar Srivastava, emphasized the significance of this initiative, stating that it will help the bank support the country’s journey towards a greener and more resilient economy. This move is a testament to IOB’s commitment to responsible banking practices and its contribution to achieving a low-carbon future. By joining PCAF, IOB is setting an example for other Indian banks to follow, underscoring the importance of sustainability in the banking sector.
All leading banks in the country, such as HDFC, SBI, Canara Bank, and others, are playing a vital role in shaping India’s economy.
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The Indian banking industry is a vital part of the country’s economy, with millions of customers receiving a range of financial services. By 2025, Indian banks are expected to continue contributing to economic growth through lending, promoting savings, and supporting businesses. The banking sector has also adopted technology to provide safe and effective digital banking options.
The top 10 Indian banks, led by HDFC Bank and ICICI Bank, have excelled in their financial performance, innovative products, and exceptional customer service. Public sector banks like State Bank of India (SBI) dominate the market, with other notable performances from Axis Bank, Kotak Mahindra Bank, and Punjab National Bank (PNB).
The list of top 10 banks in India by market capitalization includes:
1. HDFC Bank (private, established in 1994, market cap: 13.11 lakh crore, users: 10 crore)
2. ICICI Bank (private, established in 1994, market cap: 9.05 lakh crore, users: 3 crore)
3. SBI (public, established in 1955, market cap: 6.95 lakh crore, users: 50 crore)
4. Kotak Mahindra Bank (private, established in 1985, market cap: 3.55 lakh crore, users: 5.1 crore)
5. Axis Bank (private, established in 1993, market cap: 3.30 lakh crore, users: 2 crore)
6. Bank of Baroda (public, established in 1908, market cap: 1.20 lakh crore, users: 12 crore)
7. Punjab National Bank (public, established in 1895, market cap: 1.19 lakh crore, users: 18 crore)
8. Indian Overseas Bank (public, established in 1937, market cap: 0.97 lakh crore, users: 10 crore)
9. Canara Bank (public, established in 1906, market cap: 0.89 lakh crore, users: 11.65 crore)
10. Union Bank of India (public, established in 1919, market cap: 0.87 lakh crore, users: 15 crore)
These banks have contributed significantly to India’s financial growth, providing digital innovations, personal and business banking products, and shaping the banking industry in India.
Trichy airport to get its 67th IOB branch – Afternoon News
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India Overseas Bank (IOB) has opened its 67th branch in Trichy, located near the Trichy International Airport. This new branch is aimed at catering to the growing banking needs of the city’s residents, particularly travelers, and those with business interests in the region. The bank has invested significant resources to ensure that the new branch is fully equipped with modern banking facilities and technology.
The new branch is strategically located in a prime area, making it easily accessible to customers. It offers a range of services, including account opening, deposit, loan, and other financial services. The bank has also introduced innovative services such as Mobile Banking, ATMs, and Internet Banking to make transactions more convenient for customers.
The opening of the new branch is seen as a significant milestone in the bank’s expansion plans, with a focus on increasing its presence in the southern region. The bank has been actively expanding its portfolio, driven by its mission to provide quality banking services to its customers.
The bank has been in operation for over 112 years and has built a reputation for being customer-centric, efficient, and reliable. Its products and services are designed to meet the diverse needs of its customers, including personal, business, and corporate clients. The bank is committed to providing a hassle-free banking experience, with a focus on technology, innovation, and customer service.
The opening of the new branch is expected to create new employment opportunities and contribute to the local economy. The bank is looking forward to serving the people of Trichy and making a positive impact in the community. In addition, the bank is planning to introduce special offers and schemes to attract new customers and retain existing ones.
Overall, the opening of the IOB branch in Trichy is a significant development in the banking sector, providing customers with more convenient and modern banking facilities. It is expected to benefit the local economy and create new opportunities for the region.
The bank is open to exploring potential partnerships with Auroville.
Indian Overseas Bank (IOB) Director Sanjaya Rastogi visited Auroville, a international township, on Thursday to explore potential areas of collaboration to enhance financial accessibility for Micro, Small and Medium Enterprises (MSME) and sustainable solar energy entities. A team of IOB officials, led by Rastogi, met with G. Seetharaman, Officer on Special Duty, and other representatives to discuss potential partnerships. The meeting aimed to identify opportunities to support the growth of MSME units in Auroville, which are engaged in various industries such as handmade chocolates, leather goods, musical instruments, and scented-candles.
Seetharaman highlighted the potential for Auroville youth to benefit from central government start-up schemes and expressed interest in establishing new collaborations to facilitate development in the township, as envisioned by Auroville Secretary Jayanti Ravi. Rastogi, accompanied by regional manager Santhosh, expressed interest in extending comprehensive MSME schemes to drive growth and support youth-led start-up initiatives. Furthermore, he proposed establishing a bank branch on the campus to better serve the needs of the approximately 700 units operating in Auroville. The IOB director’s visit aims to strengthen relationships and promote financial accessibility for MSMEs and sustainable solar energy entities in Auroville, with the ultimate goal of driving economic growth and development in the region.
IOS & Co. successfully absorbs ₹17,000 crore in new CASA deposits, aiming to recover ₹5,500 crore in NPAs by FY25.
Indian Overseas Bank (IOB), a public sector lender, has successfully mobilized a substantial amount of ₹17,000 crore in fresh CASA (current account and savings account) business over the past 21 months. This achievement is attributed to the bank’s strategic overhaul of its deposit portfolio, focusing on CASA and retail term deposits, which are more sustainable and cost-effective in the long run. IOB has been aggressively onboarding new customers, adding 25 lakh new CASA customers in FY24 and 27 lakh customers in the first nine months of FY25.
The bank’s CASA growth has been driven by a focus on cluster-based strategies and targeting tier-2 and tier-3 cities. IOB’s branches have played a key role in driving this growth, and the bank has maintained a CASA ratio consistently above 42 per cent, reaching 43.37 per cent by the end of December 2024.
In terms of term deposit growth, IOB reported a 9.96 per cent year-on-year increase for the December 2024 quarter, but there was a decline of 3.36 per cent on a quarter-on-quarter basis. The reduction is largely attributed to the bank’s strategic decision to release high-cost bulk deposits and certificates of deposits, a calculated business move aimed at better cost management. Retail term deposits, on the other hand, grew by 8 per cent in Q3FY25, reflecting positive traction.
IOB is also targeting aggressive recoveries from non-performing asset (NPA) accounts. For FY25, the bank has set a recovery target of ₹5,500 crore, and has already recovered ₹3,021 crore. The bank expects to achieve the remaining ₹2,500 crore in the fourth quarter and remains optimistic about exceeding its recovery target.