About
Indian Overseas Bank
Indian Overseas Bank (IOB) was founded on 10th February, 1937 by Shri. M. Ct. M. Chidambaram Chettyar, a pioneer in many fields such as, Banking, Insurance and Industry with the twin objectives of specializing in foreign exchange business and overseas banking. IOB had the unique distinction of commencing business in 10th February 1937 (on the inaugural day itself) in three branches simultaneously - at Karaikudi and Chennai in India and Rangoon in Burma (presently Myanmar) followed by a branch in Penang.
The Bank had 12 establishments abroad, including 8 overseas branches, 1 Representative office, 2 Remittance Centers and 1 Joint Venture Subsidiary as on 31st March 2018. There are two branches each at Hong Kong, Sri Lanka and Bangkok and one each at Singapore and South Korea. Its Representative office is located at Dubai.
The Products & Services of the bank includes NRI Services, Personal Banking, Forex Services, Agri Business Consultancy, Credit Cards, Any Branch Banking and ATM Banking. Saga of the IOB is covered into four categories, such as Pre-nationalisation era (1947- 69), at the time of Nationalisation (1969), Post - nationalisation era (1969-1992) and Post-Reform Period - Unprecedented developments (1992 & after).
In Pre-nationalisation era (1947- 69), IOB expanded its domestic activities and enlarged its international banking operations. As early as in 1957, the Bank established a training centre, which has now grown into a Staff College at Chennai with 9 training centres all over the country. IOB was the first Bank to venture into consumer credit. It introduced the popular Personal Loan scheme during this period. In 1964, the Bank made a beginning in computerisation in the areas of inter-branch reconciliation and provident fund accounts. In 1968, IOB established a full-fledged department to cater exclusively to the needs of the Agriculture sector.
At the time of Nationalisation (1969), IOB was one of the 14 major banks that was nationalised in 1969. On the eve of Nationalisation in 1969, IOB had 195 branches in India with aggregate deposits of Rs. 67.70 Crs. and Advances of Rs. 44.90 Crs.
In Post - nationalisation era (1969-1992), during the year 1973, IOB had to wind up its five Malaysian branches as the Banking Law in Malaysia prohibited operation of foreign government owned banks. This led to creation of United Asian Bank Berhad in which IOB had 16.67% of the paid up capital. In the same year Bharat Overseas Bank Ltd was created in India with 30% equity participation from IOB to take over IOB's branch at Bangkok in Thailand. In 1977, IOB opened its branch in Seoul and the Bank opened a Foreign Currency Banking Unit in the free trade zone in Colombo in 1979. The Bank sponsored 3 Regional Rural Banks viz. Puri Gramya Bank, Pandyan Grama Bank and Dhenkanal Gramya Bank. The Bank had setup a separate Computer Policy and Planning Department (CPPD) to implement the programme of computerisation, to develop software packages on its own and to impart training to staff members in this field. In the year 1988, IOB acquired Bank of Tamil Nadu in a rescue.
In Post-Reform Period - Unprecedented developments (1992 & after), IOB formulated its Web site during the month of February in 1997. The Bank got autonomous status during the year 1997-98. IOB had the distinction of being the first Bank in Banking Industry to obtain ISO 9001 Certification for its Computer Policy and Planning Department from Det Norske Veritas (DNV), Netherlands in September 1999.
IOB started its STAR services in December of the year 1999 for speedy realisation of outstation cheques. Now the Banks has 14 STARS centres and one Controlling Centre for providing this service and in the same year started tapping the potential of Internet by enabling ABB cardholders in Delhi to pay their telephone bills by just logging on to MTNL web site and by authorising the Bank to debit towards the telephone bills. The Bank made a successful debut in raising capital from the public during the financial year 2000-01, despite a subdued capital market. IOB bagged the NABARD's award for credit linking the highest number of Self Help Groups for 2000-2001 among the Banks in Tamil Nadu.
Mobile banking under SMS technology was implemented in Ahmedabad and Baroda. Pilot run of Phase I of the Internet Banking commenced covering 34 branches in 5 Metropolitan centres. IOB was one among the first to join Reserve Bank of India's negotiated dealing system for security dialing online. The Bank has finalised an e-commerce strategy and has developed the necessary Internet banking modules in-house. For the first time a Total Branch Automation package developed in-house has been customised in one of the Overseas Branches of the Bank. Most software developed in-house. During the year 2002-03, a new credit scheme Shubh Yatra' was introduced to provide loans to those who undertake foreign travel for tourism, employment and medical treatment. During the year 2004, the Government OF India selected IOB for channelising government credit to other countries, which runs into billions of dollars. And also in the same year the bank made tie up with Times Online Money to launch an Internet-based remittance product, e-Cash Home, targeted at NRIs in the US wishing to transfer money to India. IOB made pact with Chola for MF products.
During the year 2005, the bank joined hands with Visa to offer debit cards to its esteemed customers. In the year 2006, IOB inked MoU with CRI Pumps. In September 2006, Indian Overseas Bank (IOB) has finally taken control of Bharat Overseas Bank (BhOB), an unlisted private bank. This is the first instance of a public sector bank taking over a strong private sector bank without resorting to the moratorium route. During May of the year 2007, Indian rating agency ICRA assigned an 'A1+' rating to the proposed 20 bln rupee certificates of deposit programme of Indian Overseas Bank, citing the bank's consistent and measured growth, the improvement in its asset quality through effective monitoring and collection systems, and improving core profitability. During June of the year 2008, IOB launched two new products namely IOB Gold' and IOB Silver' in savings account and IOB Classic' and IOB Super' under current account.
In the year 2010-11, the bank has signed a joint venture agreement with Bank of Baroda and Andhra Bank to open a Banking subsidiary in Malaysia. The Joint Venture has been duly incorporated at Malaysia on 13.08.2010 by name 'India International Bank (Malaysia) Ltd.' BHD and the banking joint venture has started functioning from July 2012.
Bank opened 19 Rapid Retail Centres, 9 MSME Processing Centres and 8 City Back Offices during the year 2013-14.
As at the end of March 2014, the Bank had 13 establishments abroad, including 7 overseas branches, 3 Representative offices, 2 Remittance Centres and 1 Joint Venture Subsidiary. There are two branches each at Hong Kong and at Sri Lanka and one each at Singapore, South Korea and Bangkok.
During the year 2014, 16,365 new loan accounts aggregating to Rs. 879 crores were covered under the Credit Guarantee Scheme of CGTMSE.
During FY2014, the Bank introduced IOB SME Debit Cards with unique features for the benefit of SME borrowers. The Bank launched IOB SME Contractor Scheme, exclusively for contractors with credit limits up to Rs. 5 crores. IOB SME ADD ON scheme was introduced to enable the existing MSME borrowers to get their additional term loan requirement up to Rs. 25 lacs at the branch level itself, thereby making the credit available without delay. IOB MICRO ONE scheme launched earlier has been quite successful with nearly 2150 new Micro sector borrowers were financed under the scheme. IOB SME Kanaka Scheme, which was earlier a regional specific scheme, was extended to all regions during the year. The Bank also extended concessional credit terms for purchase of new Ambassador Cars and Swift- Dezire cars under Taxis Replacement Scheme by Government of West Bengal. The Bank entered into an MOU with Bharatiya Yuva Shakthi Trust (BYST), Chamber of Indian Micro Small and Medium Enterprises (CIMSME) and Women Entrepreneurs Welfare Association-Tamil Nadu (WEWA) for credit facilitation. The Bank entered in to MoU with Naturals, for financing the franchisees of their Spa Saloons under the SIDBI Loan Facilitation Service (LFS). Bank expects to utilize these arrangements in the best manner to boost credit to MSME sector.
During FY 2014, the Bank has opened 21,94,854 Basic Savings Bank Deposit Accounts taking the total number of such accounts to 59,21,110. So far, Bank has issued 11,05,215 smart cards and the number of transactions undertaken in the smart card terminal is 1,28,66,639.
During FY 2015-16, the Bank issued 48,56,17,597 equity shares of Rs.10/- each for cash at issue price of Rs.41.37 per equity share (including premium of Rs.31.37 per equity share) aggregating upto Rs.2009 crore to Government of India on Preferential Basis and 8,62,99,771 equity shares of Rs.10/- each for cash at issue price of Rs.23.45 per equity share (including premium of Rs.13.45 per equity share) aggregating upto Rs.202.37 crore to Life Insurance Corporation of India on Preferential Basis.
During FY 2015-16, the Bank opened 34 branches across the country. Out of these, 26 branches (76.47%) are located in Rural and Semi Urban centres, of which 8 branches are located in Unbanked Rural Centres.
As on 31st March 2016, the Bank had 3,397 domestic branches, comprising of 1,036 rural branches (30.50%), 960 Semi Urban branches (28.26%), 748 urban branches (22.02%) and 653 Metropolitan branches (19.22%). Besides, the Bank has 7 Zonal Offices, 49 Regional Offices, 41 Rapid Retail Centres, 4 Extension Counters, 20 Satellite Offices, 14 City Back Offices, 18 MSME Processing Centres and 6 Inspectorates.
During the year 2015, the Bank has closed 10 Regional Offices, 3 specialized financial inclusion branches, 15 specialized mid corporate branches and 26 City Back Offices with a view to rationalize administrative costs.
As at the end of March 2016, the Bank had 14 establishments abroad, including 8 overseas branches, 3 Representative offices, 2 Remittance Centres and 1 Joint Venture Subsidiary. There are two branches each at Hong Kong, Sri Lanka and Bangkok and one each at Singapore and South Korea. Representative offices are located at Guangzhou, China, Ho Chi Minh City, Vietnam and Al Karama, Dubai. Remittance Centres operate at Boonlay and Serangoon, Singapore.
During the year 2016, the Bank signed MoU with Tamil Nadu Small Industries Development Corporation, M/s Ashok Leyland Limited & M/s Auto Print Machinery Pvt Limited with an objective to provide more offerings to MSME customers.
During the FY 2016-17, the Bank issued 9,17,48,448 equity shares of Rs.10/- each for cash at issue price of Rs.28.55 per equity share (including premium of Rs.18.55 per equity share) aggregating upto Rs.261.94 crore on QIP basis and 55,57,14,797 equity shares of Rs.10/- each for cash at issue price of Rs.27.91 per equity share (including premium of Rs.17.91 per equity share) aggregating upto Rs.1,551 crore to Government of India on Preferential Basis.
During the year 2016-17, the Bank opened 9 branches across the country. Out of these, 5 branches (55.55%) are located in Rural and Semi Urban centres, of which 3 branches are located in Unbanked Rural Centers.
As on 31st March 2017, the Bank had 3,373 domestic branches, comprising of 922 rural branches (27.33%), 1001 Semi Urban branches (29.67%), 692 urban branches (20.51%) and 758 Metropolitan branches (22.47%).
During the year 2017-18, the Bank issued 39,78,30,018 equity shares of Rs.10/- each for cash at issue price of Rs.27.65 per equity share (including premium of Rs.17.65 per equity share) aggregating upto Rs.1,100 crores to Government of India on Preferential Basis on 31 August 2017 for the capital infusion received from Government of India on 16 March 2017 and 203,82,11,029 equity shares of Rs.10/- each for cash at issue price of Rs.23.03 per equity share (including premium of Rs.13.03 per equity share) aggregating upto Rs.4,694 crores to Government of India on Preferential Basis on 28 March 2018.
The Bank issued 137,30,10,821 equity shares of Rs 10 each for cash at issue price of Rs 15.71 per equity share (including premium of Rs 5.71 per equity share) aggregating to Rs 2,157 crores to Government of India on Preferential Basis on 12 November 2018 for the capital infusion received from Government of India on 23 July 2018 and 269,54,67,422 equity shares of Rs 10 each for cash at issue price of Rs 14.12 per equity share (including premium of Rs 4.12 per equity share) aggregating to Rs 3,806 crores to Government of India on Preferential Basis on 28 March 2019 for the capital infusion received from Government of India on 21 February 2019.
During the fiscal 2019, Total deposits of the bank stood at Rs 2,22,534 crore as against Rs 2,16,832 crore as on 31 March 2018. The bank's Gross Advances stood at Rs 1,51,996 crore as on 31st March 2019, as against Rs 1,50,999 crore in the previous year.
During the quarter ended December 2018, the Bank had raised Basel III Compliant Tier II bonds aggregating Rs 300 crore on private placement basis at a coupon rate of 11.70% with tenor of 10 years.
The Bank has 3,280 domestic branches and 3450 ATMs as on 31st March 2019, comprising of 914 rural branches (27.87%), 965 Semi Urban branches (29.42%), 669 Urban branches (20.40%) and 732 Metropolitan branches (22.32%). The Bank also has 7 Zonal Offices, 48 Regional Offices, 3 Extension Counters, 2 Satellite Offices, 3 City Back Offices and 6 Zonal Audit Offices. During the year under review, the Bank has closed 53 branches and opened one branch.
The Central Vigilance Commission has awarded the Bank with 'Vigilance Innovation Award 2018' with an Excellent Grade for various initiatives taken in the Bank. The bank has been awarded Winner for 'Reforms Excellence' among all Public Sector Banks at the event organized by IBA at Delhi on 28.02.2019. The bank was ranked 5th position as on March 2019 under EASE 1.0 (FY 2018-19) with 75% score among PSBs.
During the fiscal 2020, Total deposits of the bank stood at Rs 2,22,952 crore as against Rs 2,22,534 crore as on 31 March 2019. The bank's Gross Advances stood at Rs 1,34,771 crore as on 31st March 2020, as against Rs 1,51,996 crore in the previous year.
For the capital infusion by Government of India during 2019-20, the Bank issued a) 344,37,50,000 equity shares of Rs.10/- each for cash at issue price of Rs.11.20 per equity share (including premium of Rs.1.20 per equity share) aggregating to Rs.3,857 Crore to Government of India on Preferential Basis on 28.11.2019 for the capital infusion received from Government of India on 27.09.2019 and b) 385,15,90,106 equity shares of Rs.10/- each for cash at issue price of 11.32 per equity share (including premium of Rs.1.32 per equity share) aggregating to Rs.4,360 crore to Government of India on Preferential Basis on 27.02.2020 for the capital infusion received from Government of India on 03.01.2020.
During the quarter ended 30.09.2019, the Bank had raised Basel III Compliant Tier II bonds aggregating Rs.500 Crore on private placement basis at a coupon rate of 9.08% with tenor of 10 years.
The Bank has 3,270 domestic Branches and 3032 ATMs as on 31st March 2020, comprising of 912 Rural Branches (27.89%), 960 Semi Urban Branches (29.36%), 670 Urban Branches (20.49%) and 728 Metropolitan Branches (22.26%). The Bank also has 7 Zonal Offices, 48 Regional Offices, 2 Extension Counters, 2 Satellite Offices, 3 City Back Offices and 6 Zonal Audit Offices. During the year under review (FY 2019- 20), the Bank has merged 10 Branches with other existing branches.
The Bank has 6 establishments abroad, including 4 Overseas Branches, 1 Remittance Center and 1 Joint Venture Subsidiary as on 31 March 2020. The Bank has one Branch each at Singapore, Hong Kong, Bangkok and Colombo and one Remittance Centre at Serangoon, Singapore. The Joint Venture subsidiary India International Bank (Malaysia) Berhad is functioning at Malaysia.
The Bank has 3,217 domestic Branches and 1927 ATMs as on 31st March, 2021, comprising of 902 rural branches, 961 Semi Urban branches, 654 urban branches and 702 Metropolitan branches. The Bank also has 48 Regional Offices, 3 Extension Counters, 1 Satellite Office, 3 City Back Offices and 6 Nodal Audit Offices. Presently, the Bank has its overseas presence in 4 countries Singapore, Hongkong, Thailand and Sri Lanka.
The Bank has 6 establishments abroad, including 4 Overseas Branches, 1 Remittance Center and 1 Joint Venture Subsidiary as on 31st March 2022. The Bank has one Branch each at Singapore, Hong Kong, Bangkok and Colombo and one Remittance Centre at Serangoon, Singapore.
The Bank has 3,214 domestic Branches and 3,355 ATMS as on 31st March, 2022, comprising of 902 rural branches, 961 Semi Urban branches, 653 urban branches and 698 Metropolitan branches. The Bank also has 48 Regional Offices, 3 Extension Counters, 1 Satellite Office, 3 City Back Offices and 6 Nodal Audit Offices. Presently, the Bank has its overseas presence in 4 countries Singapore, Hongkong, Thailand and Sri Lanka. During the year 2021-22, the Bank has merged 3 Branches with other existing branches.
The Bank has 6 establishments abroad, including 4 Overseas Branches, 1 Remittance Center and 1 Joint Venture Subsidiary as on 31st March 2022. The Bank has one Branch each at Singapore, Hong Kong, Bangkok and Colombo and one Remittance Centre at Serangoon, Singapore.
The Bank has 3,220 domestic Branches and 3,355 ATMS as on 31st March, 2023, comprising of 906 rural branches, 961 Semi Urban branches, 655 urban branches and 698 Metropolitan branches. The Bank also has 49 Regional Offices, 2 Extension Counters, 1 Satellite Office, 3 City Back Offices and 6 Nodal Audit Offices. Presently, the Bank has its overseas presence in 4 countries Singapore, Hong Kong, Thailand and Sri Lanka. During the year 2022-23, the Bank opened 4 Rural Branches, 2 Digital Banking Units & One Regional Office.
The Bank has 5 establishments abroad, including 4 Overseas Branches, and 1 Joint Venture Subsidiary as on 31st March 2023. The Bank has one Branch each at Singapore, Hong Kong, Bangkok and Colombo.
Indian Overseas Bank
Chairman Speech
Dear Shareholders,
I have pleasure in presenting your Bank's Annual Report and financial
statements for the year 2022-23. At the outset, I am grateful to each one of you for your
valuable partnership with Indian Overseas Bank which has helped your esteemed institution
with rich legacy of 87 years to stand strong with healthy
financials and fundamentals. During the year, the Bank showed its
resilience and continued to post profits consistently in all the four quarters which
helped to register all time high net profit of Rs.2099 Crores and crossed the business mix
of Rs.4,49,892 crores. Now, I would like to share with you the performance highlights of
the Bank during the year as well as the outlook for the Bank going forward.
Economic Environment Global Economy
The global economy remained volatile in FY 2022-23. It has been a
challenging year for the global economy in general and the
banking industry in specific. In addition to COVID- 19's lingering
impact, the world witnessed multi-decade high level of inflation rates across countries
due to supply chain disruptions and elevated energy prices following Russia's
invasion of Ukraine.
To combat this situation, Central Banks across the world continued to
withdraw their accommodative stance in a calibrated manner which led to tightening of
liquidity across global markets and an increase in interest rates. This posed a downside
risk to global economic growth prospects due to contraction in consumption and output.
More recently, the turmoil of a few banks in US and Europe has resulted vulnerabilities in
the banking sector and concerns about global financial stability and systemic risk. Taking
into consideration these prevailing global economic conditions, the global outlook is
uncertain amid financial sector turmoil, high inflation, higher interest rates as a result
cooling economic activity and ongoing effects of Russia's invasion of Ukraine. The
International Monetary Fund (IMF) predicts the global economy will grow by 2.8% this year
and 3% in 2024. Emerging and developing economies to grow 3.9% in 2023 from 4% in 2022,
with major contributions from India and China.
Domestic Economy
Indian economy remained resilient amidst these uncertainties on account
of strong economic fundamentals and robust balance sheets of the corporate sector and
banks enabled a rebound in credit demand, which was also facilitated by a large increase
in capex by the Centre. India's GDP growth accelerated to 6.1% in the January to
March 2023 quarter from an upwardly revised 4.5% growth in previous economy growth was
quarter. For the full financial reported at 7.2% higher than the earlier Second Advance
Estimate had seen 9.1% of 7%.Intheprevious financial GDP growth. The surge is primarily
driven by improved performance in agriculture, manufacturing, mining, and construction
sectors. There was a broad-based improvement in growth across sectors. The strength in
domestic demand supported the growth amid the global slowdown.
The agricultural sector grew by 4%, up from 3.5% in the previous year.
The sector performed well despite weather-related disruptions. The industrial sector grew
by 6.3 % in fourth quarter of financial year 2022-23 as against 2.3% in the previous
quarter. The Services sector grew at 9.5% compared with 8.8% growth a year ago driven by
trade, hotel, and transportation. The financial, real estate & professional services
sectors saw their growth at 7.1%, compared to 4.7% in 2021-22. The Reserve Bank of India
is projected real GDP growth of India for 2023-24 at 6.5% with Q1:2023-24 at 7.8%; Q2 at
6.2%; Q3 at 6.1%; and Q4 at 5.9 %, with risks evenly balanced.
The International Monetary Fund (IMF) predicts India's growth
forecast for FY24 to 5.90% is lower than the RBI's projection of 6.4%. But still
India will continue to be the fastest-growing economy in the world despite facing
considerable challenges.
It says India continues to remain a relative "bright spot"
in the world economy and will alone contribute 15% of the global growth in 2023.
Outlook for Banking Sector
The Banking sector in India remained resilient and stable and various
key financial parameters relating to capital adequacy, asset quality, provision coverage
and profitability have seen improvement. The demand for credit seen from almost all the
major sectors of the economy. The Credit offtake of the banking industry (SCBs) rose by
15.0% year on year (y-o-y) for the fortnight ended March 24, 2023. The Deposit growth
witnessed a slower growth at 9.6% y-o-y compared to credit growth. The Public sector banks
have registered credit and deposit growth of 15.8% and 9.3% respectively during financial
year 2022-23 over financial year 2021-22. CD ratio also improved from 69.35 % to 73.53%
for the same period.
Public sector banks' cumulative profit crossed the Rs.1 lakh
crore-mark in the financial year ended March 2023. The 12 PSBs witnessed 57.27% increase
in net profit compared to Rs 66,542 Crore earned in 2021-22 due to higher interest income
and improvement in management of non-performing assets.
Currently no PSB is placed under Prompt Corrective Action (PCA)
framework by RBI.
This performance of the Bank came in an economic environment where the
major economies around the world faced unprecedented inflation & monetary tightening,
which led to global slowdown and the turmoil of a few banks in US and
Europe in the last quarter of the financial year As retail
Inflationrate eases to 4.9% in April 2023 less than expectations, the Reserve Bank of
India's (RBI) monetary policy committee (MPC) is likely to keep the repo rate unchanged at
6.5% in the policy meeting scheduled between 6 and 8 June 2023 which may help bank to see
the demand for credit growth unaffected.
Going forward, banking sector may continue to see double digit credit
growth facilitated by a large increase in capex by the Centre. However, Bank may face
pressure on Net Interest Margin (NIM) because of rise in funding cost faster than lending
cost. Bank to see increase in interest expenses due to higher concentration on Special
fixed deposit new deposit with higher interest rate.
Financial Performance - Highlights of your Bank – 2022-23
The Net profit of the Bank has increased by 22.76% to Rs.2,099
Crores in the financial year ended 2022-23 from Rs.1,710 Crores as on
31.03.2022 on the back of strong growth in Net Interest Income and Improvement in asset
quality.
The Net Interest income of the bank has increased by 30.82% to Rs 8,256
crores as on 31.03.2023 on the back of strong credit growth from Rs.6,311 Crores reported
in the previous financial year. The credit growth of the bank has increased by 21.31%
(YoY) to Rs 1,89,009 Crores as on 31.03.2023.
On the asset quality side, the Bank has seen decrease in both .82%)
31.03.2023 gross NPA & Net NPA. The Gross NPA of the Bank has deceased to Rs.14,072
Crores (7.44%) as on 31.03.2023 from Rs.15,299 Crores (9.82%) reported in the financial
year ended 31.03.2022. Similarly, the Net NPA of the bank has decreased to Rs 3,266
.83%)
Crores (1.83 %) from Rs.3,825 Crores (2.65 %) for the above said
period.
The provision requirement for NPA has decreased by 26.52% to Rs.2,499
Crores as on 31.03.2023 as against Rs.3,401 Crores reported in the previous year due to
improvement in the asset quality. The credit cost of the bank has reduced to 1.70% as on
31.03.2023 as against 2.35% reported in the last year. The PCR of the Bank has improved by
97 bps to 92.63% as on 31.3.2023 from 91.66% as on 31.03.2022.
The Capital Adequacy ratio has improved to 16.10% as on 31.03.2023 as
against 13.83% as on 31.03.2022.
Capital Position
The board in its meeting held on 22.06.2022 had approved to raise Tier
II Capital by issue of Basel III Tier II Bonds of Rs.1000 Crore depending on requirements
for FY 2022-23. Accordingly, the issue size fixed for Rs.200 Crore with a Green Shoe
option up to Rs.800 Crore.
After Careful consideration Bank has raised capital by issue of Basel
III Tier II Bonds to the tune of Rs.1000 crore through private placements, subscribed by
QIBs.
Awards and Accolades
I am pleased to inform you that IOB
• Bankreceivedthe'RajbhashaKirtipuraskar'fromtheMinistry
ofHomeAffairs,GovernmentofIndiaforthefinancialyear 2021-22,asacertificationoftheefforts
made by your Bank towards the implementation of Official Language.
• Bank has been awarded Certificate securing 2nd Position in Group
C and 2nd Position overall in the DSB monsoon Drive Lap 1.0 and also received Certificate
of lakhs campaign (15.02.2023 to 15.03.2023).
• Bank has been awarded Certificate excellent performance in the
DSB Lakshya Reloaded 2.0 campaign (15.09.2022 to 27.09.2022).
Going forward
With the support of huge base of several loyal customers and a large
base of young, strong, and energetic work force, Brand lOB is sure to play an important
role in the Banking Industry.
Acknowledgement
I take this opportunity to thank the Government of India, Reserve Bank
of India, the Monetary Authorities of countries where the
Bankhasoverseasoperations,otherGovernmentandRegulatory Agencies in India and abroad, for
their valuable support and guidance.
I thank our customers in India and abroad and our shareholders for
their faith in Brand IOB as we strive to improve the Bank's position on an ongoing
basis and remain strongly committed to creatingvaluefor our stakeholders.
I thank my colleagues on the board for the benefit
and direction. I also thank all IOBians for their dedication and
commitment.
With warm regards,
Yours sincerely,
-Sd/-
Ajay Kumar Srivastava
Managing Director & Chief Executive
  Â
Indian Overseas Bank
Company History
Indian Overseas Bank (IOB) was founded on 10th February, 1937 by Shri. M. Ct. M. Chidambaram Chettyar, a pioneer in many fields such as, Banking, Insurance and Industry with the twin objectives of specializing in foreign exchange business and overseas banking. IOB had the unique distinction of commencing business in 10th February 1937 (on the inaugural day itself) in three branches simultaneously - at Karaikudi and Chennai in India and Rangoon in Burma (presently Myanmar) followed by a branch in Penang.
The Bank had 12 establishments abroad, including 8 overseas branches, 1 Representative office, 2 Remittance Centers and 1 Joint Venture Subsidiary as on 31st March 2018. There are two branches each at Hong Kong, Sri Lanka and Bangkok and one each at Singapore and South Korea. Its Representative office is located at Dubai.
The Products & Services of the bank includes NRI Services, Personal Banking, Forex Services, Agri Business Consultancy, Credit Cards, Any Branch Banking and ATM Banking. Saga of the IOB is covered into four categories, such as Pre-nationalisation era (1947- 69), at the time of Nationalisation (1969), Post - nationalisation era (1969-1992) and Post-Reform Period - Unprecedented developments (1992 & after).
In Pre-nationalisation era (1947- 69), IOB expanded its domestic activities and enlarged its international banking operations. As early as in 1957, the Bank established a training centre, which has now grown into a Staff College at Chennai with 9 training centres all over the country. IOB was the first Bank to venture into consumer credit. It introduced the popular Personal Loan scheme during this period. In 1964, the Bank made a beginning in computerisation in the areas of inter-branch reconciliation and provident fund accounts. In 1968, IOB established a full-fledged department to cater exclusively to the needs of the Agriculture sector.
At the time of Nationalisation (1969), IOB was one of the 14 major banks that was nationalised in 1969. On the eve of Nationalisation in 1969, IOB had 195 branches in India with aggregate deposits of Rs. 67.70 Crs. and Advances of Rs. 44.90 Crs.
In Post - nationalisation era (1969-1992), during the year 1973, IOB had to wind up its five Malaysian branches as the Banking Law in Malaysia prohibited operation of foreign government owned banks. This led to creation of United Asian Bank Berhad in which IOB had 16.67% of the paid up capital. In the same year Bharat Overseas Bank Ltd was created in India with 30% equity participation from IOB to take over IOB's branch at Bangkok in Thailand. In 1977, IOB opened its branch in Seoul and the Bank opened a Foreign Currency Banking Unit in the free trade zone in Colombo in 1979. The Bank sponsored 3 Regional Rural Banks viz. Puri Gramya Bank, Pandyan Grama Bank and Dhenkanal Gramya Bank. The Bank had setup a separate Computer Policy and Planning Department (CPPD) to implement the programme of computerisation, to develop software packages on its own and to impart training to staff members in this field. In the year 1988, IOB acquired Bank of Tamil Nadu in a rescue.
In Post-Reform Period - Unprecedented developments (1992 & after), IOB formulated its Web site during the month of February in 1997. The Bank got autonomous status during the year 1997-98. IOB had the distinction of being the first Bank in Banking Industry to obtain ISO 9001 Certification for its Computer Policy and Planning Department from Det Norske Veritas (DNV), Netherlands in September 1999.
IOB started its STAR services in December of the year 1999 for speedy realisation of outstation cheques. Now the Banks has 14 STARS centres and one Controlling Centre for providing this service and in the same year started tapping the potential of Internet by enabling ABB cardholders in Delhi to pay their telephone bills by just logging on to MTNL web site and by authorising the Bank to debit towards the telephone bills. The Bank made a successful debut in raising capital from the public during the financial year 2000-01, despite a subdued capital market. IOB bagged the NABARD's award for credit linking the highest number of Self Help Groups for 2000-2001 among the Banks in Tamil Nadu.
Mobile banking under SMS technology was implemented in Ahmedabad and Baroda. Pilot run of Phase I of the Internet Banking commenced covering 34 branches in 5 Metropolitan centres. IOB was one among the first to join Reserve Bank of India's negotiated dealing system for security dialing online. The Bank has finalised an e-commerce strategy and has developed the necessary Internet banking modules in-house. For the first time a Total Branch Automation package developed in-house has been customised in one of the Overseas Branches of the Bank. Most software developed in-house. During the year 2002-03, a new credit scheme Shubh Yatra' was introduced to provide loans to those who undertake foreign travel for tourism, employment and medical treatment. During the year 2004, the Government OF India selected IOB for channelising government credit to other countries, which runs into billions of dollars. And also in the same year the bank made tie up with Times Online Money to launch an Internet-based remittance product, e-Cash Home, targeted at NRIs in the US wishing to transfer money to India. IOB made pact with Chola for MF products.
During the year 2005, the bank joined hands with Visa to offer debit cards to its esteemed customers. In the year 2006, IOB inked MoU with CRI Pumps. In September 2006, Indian Overseas Bank (IOB) has finally taken control of Bharat Overseas Bank (BhOB), an unlisted private bank. This is the first instance of a public sector bank taking over a strong private sector bank without resorting to the moratorium route. During May of the year 2007, Indian rating agency ICRA assigned an 'A1+' rating to the proposed 20 bln rupee certificates of deposit programme of Indian Overseas Bank, citing the bank's consistent and measured growth, the improvement in its asset quality through effective monitoring and collection systems, and improving core profitability. During June of the year 2008, IOB launched two new products namely IOB Gold' and IOB Silver' in savings account and IOB Classic' and IOB Super' under current account.
In the year 2010-11, the bank has signed a joint venture agreement with Bank of Baroda and Andhra Bank to open a Banking subsidiary in Malaysia. The Joint Venture has been duly incorporated at Malaysia on 13.08.2010 by name 'India International Bank (Malaysia) Ltd.' BHD and the banking joint venture has started functioning from July 2012.
Bank opened 19 Rapid Retail Centres, 9 MSME Processing Centres and 8 City Back Offices during the year 2013-14.
As at the end of March 2014, the Bank had 13 establishments abroad, including 7 overseas branches, 3 Representative offices, 2 Remittance Centres and 1 Joint Venture Subsidiary. There are two branches each at Hong Kong and at Sri Lanka and one each at Singapore, South Korea and Bangkok.
During the year 2014, 16,365 new loan accounts aggregating to Rs. 879 crores were covered under the Credit Guarantee Scheme of CGTMSE.
During FY2014, the Bank introduced IOB SME Debit Cards with unique features for the benefit of SME borrowers. The Bank launched IOB SME Contractor Scheme, exclusively for contractors with credit limits up to Rs. 5 crores. IOB SME ADD ON scheme was introduced to enable the existing MSME borrowers to get their additional term loan requirement up to Rs. 25 lacs at the branch level itself, thereby making the credit available without delay. IOB MICRO ONE scheme launched earlier has been quite successful with nearly 2150 new Micro sector borrowers were financed under the scheme. IOB SME Kanaka Scheme, which was earlier a regional specific scheme, was extended to all regions during the year. The Bank also extended concessional credit terms for purchase of new Ambassador Cars and Swift- Dezire cars under Taxis Replacement Scheme by Government of West Bengal. The Bank entered into an MOU with Bharatiya Yuva Shakthi Trust (BYST), Chamber of Indian Micro Small and Medium Enterprises (CIMSME) and Women Entrepreneurs Welfare Association-Tamil Nadu (WEWA) for credit facilitation. The Bank entered in to MoU with Naturals, for financing the franchisees of their Spa Saloons under the SIDBI Loan Facilitation Service (LFS). Bank expects to utilize these arrangements in the best manner to boost credit to MSME sector.
During FY 2014, the Bank has opened 21,94,854 Basic Savings Bank Deposit Accounts taking the total number of such accounts to 59,21,110. So far, Bank has issued 11,05,215 smart cards and the number of transactions undertaken in the smart card terminal is 1,28,66,639.
During FY 2015-16, the Bank issued 48,56,17,597 equity shares of Rs.10/- each for cash at issue price of Rs.41.37 per equity share (including premium of Rs.31.37 per equity share) aggregating upto Rs.2009 crore to Government of India on Preferential Basis and 8,62,99,771 equity shares of Rs.10/- each for cash at issue price of Rs.23.45 per equity share (including premium of Rs.13.45 per equity share) aggregating upto Rs.202.37 crore to Life Insurance Corporation of India on Preferential Basis.
During FY 2015-16, the Bank opened 34 branches across the country. Out of these, 26 branches (76.47%) are located in Rural and Semi Urban centres, of which 8 branches are located in Unbanked Rural Centres.
As on 31st March 2016, the Bank had 3,397 domestic branches, comprising of 1,036 rural branches (30.50%), 960 Semi Urban branches (28.26%), 748 urban branches (22.02%) and 653 Metropolitan branches (19.22%). Besides, the Bank has 7 Zonal Offices, 49 Regional Offices, 41 Rapid Retail Centres, 4 Extension Counters, 20 Satellite Offices, 14 City Back Offices, 18 MSME Processing Centres and 6 Inspectorates.
During the year 2015, the Bank has closed 10 Regional Offices, 3 specialized financial inclusion branches, 15 specialized mid corporate branches and 26 City Back Offices with a view to rationalize administrative costs.
As at the end of March 2016, the Bank had 14 establishments abroad, including 8 overseas branches, 3 Representative offices, 2 Remittance Centres and 1 Joint Venture Subsidiary. There are two branches each at Hong Kong, Sri Lanka and Bangkok and one each at Singapore and South Korea. Representative offices are located at Guangzhou, China, Ho Chi Minh City, Vietnam and Al Karama, Dubai. Remittance Centres operate at Boonlay and Serangoon, Singapore.
During the year 2016, the Bank signed MoU with Tamil Nadu Small Industries Development Corporation, M/s Ashok Leyland Limited & M/s Auto Print Machinery Pvt Limited with an objective to provide more offerings to MSME customers.
During the FY 2016-17, the Bank issued 9,17,48,448 equity shares of Rs.10/- each for cash at issue price of Rs.28.55 per equity share (including premium of Rs.18.55 per equity share) aggregating upto Rs.261.94 crore on QIP basis and 55,57,14,797 equity shares of Rs.10/- each for cash at issue price of Rs.27.91 per equity share (including premium of Rs.17.91 per equity share) aggregating upto Rs.1,551 crore to Government of India on Preferential Basis.
During the year 2016-17, the Bank opened 9 branches across the country. Out of these, 5 branches (55.55%) are located in Rural and Semi Urban centres, of which 3 branches are located in Unbanked Rural Centers.
As on 31st March 2017, the Bank had 3,373 domestic branches, comprising of 922 rural branches (27.33%), 1001 Semi Urban branches (29.67%), 692 urban branches (20.51%) and 758 Metropolitan branches (22.47%).
During the year 2017-18, the Bank issued 39,78,30,018 equity shares of Rs.10/- each for cash at issue price of Rs.27.65 per equity share (including premium of Rs.17.65 per equity share) aggregating upto Rs.1,100 crores to Government of India on Preferential Basis on 31 August 2017 for the capital infusion received from Government of India on 16 March 2017 and 203,82,11,029 equity shares of Rs.10/- each for cash at issue price of Rs.23.03 per equity share (including premium of Rs.13.03 per equity share) aggregating upto Rs.4,694 crores to Government of India on Preferential Basis on 28 March 2018.
The Bank issued 137,30,10,821 equity shares of Rs 10 each for cash at issue price of Rs 15.71 per equity share (including premium of Rs 5.71 per equity share) aggregating to Rs 2,157 crores to Government of India on Preferential Basis on 12 November 2018 for the capital infusion received from Government of India on 23 July 2018 and 269,54,67,422 equity shares of Rs 10 each for cash at issue price of Rs 14.12 per equity share (including premium of Rs 4.12 per equity share) aggregating to Rs 3,806 crores to Government of India on Preferential Basis on 28 March 2019 for the capital infusion received from Government of India on 21 February 2019.
During the fiscal 2019, Total deposits of the bank stood at Rs 2,22,534 crore as against Rs 2,16,832 crore as on 31 March 2018. The bank's Gross Advances stood at Rs 1,51,996 crore as on 31st March 2019, as against Rs 1,50,999 crore in the previous year.
During the quarter ended December 2018, the Bank had raised Basel III Compliant Tier II bonds aggregating Rs 300 crore on private placement basis at a coupon rate of 11.70% with tenor of 10 years.
The Bank has 3,280 domestic branches and 3450 ATMs as on 31st March 2019, comprising of 914 rural branches (27.87%), 965 Semi Urban branches (29.42%), 669 Urban branches (20.40%) and 732 Metropolitan branches (22.32%). The Bank also has 7 Zonal Offices, 48 Regional Offices, 3 Extension Counters, 2 Satellite Offices, 3 City Back Offices and 6 Zonal Audit Offices. During the year under review, the Bank has closed 53 branches and opened one branch.
The Central Vigilance Commission has awarded the Bank with 'Vigilance Innovation Award 2018' with an Excellent Grade for various initiatives taken in the Bank. The bank has been awarded Winner for 'Reforms Excellence' among all Public Sector Banks at the event organized by IBA at Delhi on 28.02.2019. The bank was ranked 5th position as on March 2019 under EASE 1.0 (FY 2018-19) with 75% score among PSBs.
During the fiscal 2020, Total deposits of the bank stood at Rs 2,22,952 crore as against Rs 2,22,534 crore as on 31 March 2019. The bank's Gross Advances stood at Rs 1,34,771 crore as on 31st March 2020, as against Rs 1,51,996 crore in the previous year.
For the capital infusion by Government of India during 2019-20, the Bank issued a) 344,37,50,000 equity shares of Rs.10/- each for cash at issue price of Rs.11.20 per equity share (including premium of Rs.1.20 per equity share) aggregating to Rs.3,857 Crore to Government of India on Preferential Basis on 28.11.2019 for the capital infusion received from Government of India on 27.09.2019 and b) 385,15,90,106 equity shares of Rs.10/- each for cash at issue price of 11.32 per equity share (including premium of Rs.1.32 per equity share) aggregating to Rs.4,360 crore to Government of India on Preferential Basis on 27.02.2020 for the capital infusion received from Government of India on 03.01.2020.
During the quarter ended 30.09.2019, the Bank had raised Basel III Compliant Tier II bonds aggregating Rs.500 Crore on private placement basis at a coupon rate of 9.08% with tenor of 10 years.
The Bank has 3,270 domestic Branches and 3032 ATMs as on 31st March 2020, comprising of 912 Rural Branches (27.89%), 960 Semi Urban Branches (29.36%), 670 Urban Branches (20.49%) and 728 Metropolitan Branches (22.26%). The Bank also has 7 Zonal Offices, 48 Regional Offices, 2 Extension Counters, 2 Satellite Offices, 3 City Back Offices and 6 Zonal Audit Offices. During the year under review (FY 2019- 20), the Bank has merged 10 Branches with other existing branches.
The Bank has 6 establishments abroad, including 4 Overseas Branches, 1 Remittance Center and 1 Joint Venture Subsidiary as on 31 March 2020. The Bank has one Branch each at Singapore, Hong Kong, Bangkok and Colombo and one Remittance Centre at Serangoon, Singapore. The Joint Venture subsidiary India International Bank (Malaysia) Berhad is functioning at Malaysia.
The Bank has 3,217 domestic Branches and 1927 ATMs as on 31st March, 2021, comprising of 902 rural branches, 961 Semi Urban branches, 654 urban branches and 702 Metropolitan branches. The Bank also has 48 Regional Offices, 3 Extension Counters, 1 Satellite Office, 3 City Back Offices and 6 Nodal Audit Offices. Presently, the Bank has its overseas presence in 4 countries Singapore, Hongkong, Thailand and Sri Lanka.
The Bank has 6 establishments abroad, including 4 Overseas Branches, 1 Remittance Center and 1 Joint Venture Subsidiary as on 31st March 2022. The Bank has one Branch each at Singapore, Hong Kong, Bangkok and Colombo and one Remittance Centre at Serangoon, Singapore.
The Bank has 3,214 domestic Branches and 3,355 ATMS as on 31st March, 2022, comprising of 902 rural branches, 961 Semi Urban branches, 653 urban branches and 698 Metropolitan branches. The Bank also has 48 Regional Offices, 3 Extension Counters, 1 Satellite Office, 3 City Back Offices and 6 Nodal Audit Offices. Presently, the Bank has its overseas presence in 4 countries Singapore, Hongkong, Thailand and Sri Lanka. During the year 2021-22, the Bank has merged 3 Branches with other existing branches.
The Bank has 6 establishments abroad, including 4 Overseas Branches, 1 Remittance Center and 1 Joint Venture Subsidiary as on 31st March 2022. The Bank has one Branch each at Singapore, Hong Kong, Bangkok and Colombo and one Remittance Centre at Serangoon, Singapore.
The Bank has 3,220 domestic Branches and 3,355 ATMS as on 31st March, 2023, comprising of 906 rural branches, 961 Semi Urban branches, 655 urban branches and 698 Metropolitan branches. The Bank also has 49 Regional Offices, 2 Extension Counters, 1 Satellite Office, 3 City Back Offices and 6 Nodal Audit Offices. Presently, the Bank has its overseas presence in 4 countries Singapore, Hong Kong, Thailand and Sri Lanka. During the year 2022-23, the Bank opened 4 Rural Branches, 2 Digital Banking Units & One Regional Office.
The Bank has 5 establishments abroad, including 4 Overseas Branches, and 1 Joint Venture Subsidiary as on 31st March 2023. The Bank has one Branch each at Singapore, Hong Kong, Bangkok and Colombo.
Indian Overseas Bank
Directors Reports
2022-23
The Board of Directors have pleasure in presenting the Annual
Report together with Audited Balance Sheet and Profit & Loss
Account of the Bank for the year ended 31st March, 2023.
Global Business Performance
The global economy remained volatile in FY 2022-23. It has been a
challenging year for the global economy in general and the banking industry in specific.
In addition to COVID-
19's lingering impact, the world witnessed multi-decade high level
of inflation rates across countries due to supply chain disruptions and elevated energy
prices following Russia's invasion of Ukraine.
To combat this situation, Central Banks across the world continued to
withdraw their accommodative stance in a calibrated manner which led to tightening of
liquidity across global markets and an increase in interest rates. This posed a downside
risk to global economic growth prospects due to contraction in consumption and output.
More recently, the turmoil of a few banks in US and Europe has resulted vulnerabilities in
the banking sector and concerns about global financial stability and systemic risk.
The International Monetary Fund (IMF) predicts the global economy will
grow by 2.8% this year and 3% in 2024. Emerging and developing economies to grow 3.9% in
2023 from 4% in 2022, with major contributions from India and
China.
Indian economy remained resilient amidst these uncertainties on account
of strong economic fundamentals and robust balance sheets of the corporate sector and
banks enabled a rebound in credit demand, which was also facilitated by a large increase
in capex by the centre. India's GDP growth accelerated to 6.1% in the January to
March 2023 quarter from an upwardly revised 4.5% growth in previous quarter. For the full
financial year, the economy growth was reported at 7.2% higher than the earlier Second
Advance Estimate of 7%. In the previous financial year, India had seen
9.1% GDP growth. The surge is primarily driven by improved performance in agriculture,
manufacturing, mining, and construction sectors. There was a broad-based improvement in
growth across sectors. The strength in domestic demand supported the growth amid the
global slowdown The Reserve Bank of India has projected real GDP growth of India for
2023-24 at 6.5 % with Q1:2023-24 at 7.8%; Q2 at 6.2 %; Q3 at 6.1 %; and Q4 at 5.9
%; with risks evenly balanced.
Financial Performance
Banks global Business stood at Rs.4,49,892 Crores as of 31st
March 2023 as compared to Rs.4,17,960 Crores as of 31st March 2022.
Deposits and Advances stood at Rs.2,60,883
Crores and Rs.1,89,009 Crores as of 31st March 2023 as
compared to Rs.2,62,159 Crores and Rs.1,55,801 Crores as of
31st March 2022 respectively.
CASA deposits stood at Rs.1,14,113 Crores as on 31st March
2023 as compared to Rs.1,13,877 Crores as on 31st March 2022 a landmark
achievement in the history of the Bank. CASA ratio improved from 43.44% to 43.74% during
the financial year 2022-2023.
The credit growth of the bank has increased by 21.31% (Y-o-Y) to Rs
1,89,009 Crores as on March 31st 2023. The efforts during the current year were
aimed at sustaining the higher operational efficiency levels as the operating environment
remained firm. Bank advances and accelerated the growth under Capital light advances such
as Housing and Jewel loan. As a result, operating profit for the Bank has increased to
Rs.5942 Crores as on 31st March 2023 as compared to Rs. 5763 Crores as on
31st March 2022.
On the asset quality side, the Bank has seen decrease in both gross NPA
& Net NPA. The Gross NPA of the Bank has deceased to Rs 14,072 Crores (7.44%) as on
31.03.2023 from Rs 15,299 Crores (9.82%) reported in the financial year ended
31.03.2022. Similarly, the Net NPA of the bank has decreased to Rs
3,266 Crores (1.83 %) from Rs 3,825 Crores (2.65 %) for the above said period.
As a result of this approach, The Net profit of the Bank has increased
by 22.76 % to Rs 2,099 Crores in the financial year ended 2022-23 from Rs 1,710 Crores as
on 31.03.2022 on the back of strong growth in Net Interest Income and Improvement in asset
quality.
Income and Expenditure Analysis
The Interest received on advances increased by 23.31 % (YoY) to
Rs.13151 Crores as on 31st March 2023 on compared to Rs.10665 Crores received
over previous year . Interest on investments has increased to Rs. 5899 Crores in FY
2022-23 as against Rs. 5675 Crores in FY 2021-22. Overall interest income has improved
substantially to Rs. 19401 Crores in FY 2022-23 as against 16730 Crores in FY 2021-22.
The Interest on Deposits stood at to Rs.10536 Crores in FY 2022-23 as
compared to Rs.10220 Crores paid in previous year. Interest on Borrowings has increased to
Rs.609 Crores in FY 2022-23 as against Rs.199 Crores in FY 2021-22. Overall Interest
Expenses has increased to Rs. 11145 Crores in FY 2022-23 as against Rs.10419 Crores in FY
2021-22. CASA has improved from Rs.113877 Crores as of 31st March-2022
to Rs.114113 Crores as of 31st March-2023 with a growth of 0.21%. CASA% has
moved up from 43.44% as of 31st March-2022 to 43.74% as of 31st
March-2023.
Net interest income has improved from Rs. 6311 Crores in FY 2021-22 to
Rs. 8255 Crores in FY 2022-23. Operating expenses has increased to Rs. 6422 Crores in FY
2022-23 as against Rs.5451 Crores in FY 2021-22.
Yield on Advances has improved from the level of 7.24 % in FY
2021-22 to 8.52 % in FY 2022-23. Cost of deposits has been increased
from 4.12 % in FY 2021-22 to 4.27 % in FY 2022-23. As a result, Net Interest Margin (NIM)
stood higher by 79 bps at 3.20 percent in FY 2022-23 as against 2.41 percent in FY
2021-22.
Capital Raised during 2022-23 Raising of Tier II Bonds
Bank has raised Basel III compliant Tier II Bonds (Series V)
aggregating to Rs.1000 crore on private placement basis at a coupon rate of 9.00% with a
tenor of 10 years from the date of allotment with a call option at the end of 5th year
& on subsequent coupon payment date. The instrument was rated by M/s ICRA Ratings and
M/s CARE Ratings, and they had assigned ratings of AA-/Stable.
Corporate Governance
Corporate Governance reflects the built in value system of the
Bank in conducting its day to day affairs. The Bank recognizes the
critical importance of effective Corporate Governance for the safe and sound functioning
of the Bank and lays emphasis on ensuring that structures, processes and systems are put
in place to establish strategic objectives to serve the interest of the Bank and its
stakeholders which also facilitate effective monitoring.
SEBI (Listing Obligations and Disclosure Requirements Regulations),
2015 (LODR)
As per SEBI (LODR),
• The Bank is providing remote e-voting facility to its
shareholders, in Annual General Meetings/ Extraordinary General Meetings.
The Code of Conduct is applicable to all members of the Board and the
Senior Management (i.e., General Managers of the Bank).
• The Bank is submitting a quarterly compliance report on
Corporate Governance to the Audit Committee of the Board and to BSE & NSE, where the
shares of the Bank are listed.
The Bank is also submitting Quarterly Investor Grievance
Report to BSE & NSE.
Investor Education & Protection Fund (IEPF)
As per the guidelines of Ministry of Corporate Affairs (MCA),
Government of India, the Bank has transferred Unpaid Dividend amount up
to the year 2013-14 to IEPF. Bank is complying with all guidelines/regulations laid down
by the Regulatory Authorities and Government of India from time to time. The Bank
redresses the shareholders grievances without any delay.
Capital Adequacy Ratio
The Bank's capital adequacy ratio as on 31st March 2023
stood at 16.10 % as per Basel III norms.
Branch Network
The Bank has 3,220 domestic Branches as on 31st March 2023
as against 3,214 Branches as on 31st March 2022, comprising of 906 Rural
Branches (28.13%), 961 Semi Urban Branches (29.84%), 655 Urban Branches (20.34%) and 698
Metropolitan
Branches (21.68%). The Bank also has 49 Regional Offices, 2 Extension
Counters, 1 Satellite Office, 3 City Back Offices and 6 Nodal Audit Offices. During the
year under review (FY
2022-23), the Bank has opened 4 Rural Branches, 2 Digital
Banking Units & One Regional Office.
Board of Directors
The business of the Bank is vested with the Board of Directors.
The MD & CEO and EDs function under the superintendence, direction
and control of the Board. The strength as on date is nine directors comprising three whole
time Directors, one
GOI Nominee Director, one RBI nominee director, one director elected
from amongst the shareholders to duly represent their interest and three part time
non-official directors. The MD & CEO presides over the meetings of the Board as
Chairman.
The position of the terms of directors during the FY 2022-23 is as
under:
| Name |
Date of Joining |
Term to end on |
Designation |
| Shri Ajay Kumar Srivastava |
01.01.2023 |
31.12.2025 |
Managing Director & Chief
Ex- ecutive Officer |
| Smt S Srimathy |
10.03.2021 |
09.03.2024 |
Executive Director |
| Shri Sanjay Vinayak Mudaliar |
01.01.2023 |
31.12.2025 |
Executive Director |
| Smt Annie George Mathew |
22.07.2016 |
*** |
Govt. Nominee Director |
| Shri Vivek Aggarwal |
25.02.2022 |
*** |
RBI Nominee Director |
| Shri Sanjaya Rastogi |
03.12.2022 |
02.12.2025 |
Share Holder Director |
| Shri Suresh Kumar Rungta |
21.12.2021 |
20.12.2024 |
Part Time Non-Official Director |
| Shri B Chandra Reddy |
21.12.2021 |
20.12.2024 |
Part Time Non-Official Director |
| Shri Deepak Sharma |
21.12.2021 |
20.12.2024 |
Part Time Non-Official Director |
During the FY 2022-23, the following director's tenure ended as
below:
| Name |
Date of Joining |
Term Ended on |
Designation |
| Shri Partha Pratim Sengupta |
24.07.2020 |
31.12.2022 |
Managing Director & Chief
Ex- ecutive Officer |
| Shri Ajay Kumar Srivastava |
09.10.2017 |
31.12.2022 |
Executive Director |
|
08.12.2017 |
07.12.2020 |
|
| Shri Navin Prakash Sinha |
29.01.2021 # |
07.10.2022 |
Share Holder Director |
# Shri Navin Prakash Sinha has been re-elected as Share Holder Director
for the second term from 29.01.2021 till 28.01.2024. However, Shri Navin Prakash Sinha has
resigned on 07.10.2022.
Acknowledgement
The Board of Directors are grateful for the valuable guidance and
support received from the Government of India, Reserve Bank of
India, Securities and Exchange Board of India (SEBI), Stock Exchanges,
State Governments, Financial Institutions and all Overseas Regulators. The Board of
Directors acknowledge with thanks the valued Customers, Employees Union, Officers
Association, Domestic and International Banking group, the shareholders & other stake
holders for their valued support and continued patronage with the
Bank.
The Board also wishes to place on record its profound appreciation for
the valuable contribution of the Bank's Staff at all levels and looks forward to
their continued involvement with commitment towards achieving the future goals
|
For and on behalf of the Board of Directors |
| Place : Chennai |
Ajay Kumar Srivastava |
| Date : 13th.June 2023 |
Managing Director & Chief Executive
Officer |
  Â
Indian Overseas Bank
Company Background
| Incorporation Year | 1937 |
| Registered Office | 763 Anna Salai,
Chennai,Tamil Nadu-600002 |
| Telephone | 91-44-28519491/28415702/28889392,Managing Director |
| Fax | 91-44-28585675 |
Ajay Kumar Srivastava| Company Secretary | Nandakumaran S |
| Auditor | S N Nanda & Co/Yoganandh & Ram LLP/Tej Raj & Pal |
| Face Value | 10 |
| Market Lot | 1 |
| Listing | BSE,MSEI ,NSE, |
| Registrar | Cameo Corporate Services Ltd
Subramanian Building,1ST Floor No 1,Club House Road,Chennai - 600002 |
Indian Overseas Bank
Company Management
| Director Name | Director Designation | Year |
|---|
| Ajay Kumar Srivastava | Managing Director & CEO | 2023 |
| Nandakumaran S | Company Sec. & Compli. Officer | 2023 |
| S Srimathy | Executive Director | 2023 |
| DEEPAK SHARMA | Non Official Director | 2023 |
| Suresh Kumar Rungta | Non Official Director | 2023 |
| VIVEK AGGARWAL | Nominee (RBI) | 2023 |
| B Chandra Reddy | Non-official Director | 2023 |
| Sanjay Vinayak Mudaliyar | Executive Director | 2023 |
| Sanjaya Rastogi | Director (Shareholder) | 2023 |
Indian Overseas Bank
Listing Information
| Listing Information |
|---|
| BSE_500 |
| BSE_200 |
| BSEDOLLEX |
| BSE_PSU |
| CNX500 |
| BSEMID |
| PSUBANK |
| CNXSMALLCA |
| BSEALLCAP |
| BSEFINANCE |
| MID150 |
| LMI250 |
| MSL400 |
| NFTYMSC400 |
| NFTYSC250 |
| NF500M5025 |
| NFTYTOTMKT |
Indian Overseas Bank
Finished Product
| Product Name | Unit | Installed
Capacity | Production
Quantity | Sales
Quantity | Sales
Value |
|---|
| Interest/Discount on Adv | Rs. | 0 | 0 | 0 | 13150.6873 |
| Income on Investments | Rs. | 0 | 0 | 0 | 5848.6293 |
| Interest on bal with RBI | Rs. | 0 | 0 | 0 | 401.0096 |
| Others | NA | 0 | 0 | 0 | 0 |