ECONOMIC AND BANKING ENVIRONMENT
The Indian economy remained resilient on account of strong economic fundamentals, buoyant domestic demand, robust balance sheets of the corporate sector and strong Bank credit demand which was also facilitated by a large increase in capex by the centre.
Indias real Gross Domestic Product (GDP) increased by 8.4% in the third quarter (Q3) of 2023-24, with strong investment activity and a lower drag from net external demand. This is higher than the 8.2% and 8.1% growth in the first and second quarters of 2023-24 respectively.
On the supply side, gross value added recorded a growth of 6.9% in 2023-24, driven by manufacturing and construction activity.
As the domestic economy is experiencing a strong momentum, the second advance estimates (SAE) placed real GDP growth of India at 7.6% for 2023-24, the third successive year of 7% or higher growth on the back of buoyant domestic demand. The real GDP expanded by 9.7% and 7.0% in 2021-22 and 2022-23, respectively.
The Reserve Bank of India has projected real GDP growth of India for 2024-25 at 7.0% with Q1:2024-25 at 7.1%; Q2 at 6.9%; Q3 at 7.0%; and Q4 at 7.0%, with Risks evenly balanced.
The International Monetary Fund (IMF) has revised its forecast for Indias economy, by 30 basis points to 6.8% growth in FY25 citing buoyant domestic demand compared with 6.5% estimated in January 2024.
CPI Inflation of India for 2024-25 is projected at 4.5%. The food price uncertainties continue to weigh on the inflation trajectory going forward. Food inflation after moderating to 7.6% in January 2024 from 8.7% in December 2023, edged up to 7.8% in February 2024.
The Banking sector in India remained resilient and stable and various key financial parameters relating to capital adequacy, asset quality, provision coverage and profitability have seen improvement. The demand for credit is seen from almost all the major sectors of the economy. The Credit offtake of the Banking industry (Scheduled Commercial Banks) rose by 16.3% year on year (excluding HDFC merger) for the fortnight ended March 22, 2024. The Deposit too grew by 12.87% (excluding HDFC merger) for the same period.
The Public sector Banks have registered credit and deposit growth of 13.5% and 10.1% respectively during financial year 2023-24 over financial year 2022-23. CD ratio also improved from 73.53% to 75.78% for the same period.
Public Sector Banks cumulative profit has crossed 2nd time the Rs.1 lakh crore-mark in the financial year ended March 2024. All the 12 Public Sector Banks have crossed the first time cumulative profit of Rs.1 lakh crore in the previous financial year ended March 2023. The 12 PSBs witnessed 34.93% increase in net profit to Rs.1,41,203 Crore compared to Rs.1,04,649 Crore earned in 2022-23 due to higher interest income and improvement in management of non-performing assets.
Going forward, the Banking sector may continue to see double digit credit growth facilitated by a large increase in capex by the centre, increase in MSME loan supported by PLI scheme and increase in retail credit demand due to partnership with fintech for quick loan sanction and disbursement. However, Banks may face pressure on Net Interest Margin (NIM) because of rise in funding cost faster than lending cost and it is expected that the repo rate cut cycle may start from the 2nd half year of the financial year 2024-25. Banks also see challenges from the deposit mobilisation front especially from low-cost CASA deposits. The strong competition among Banks for deposit mobilisation will keep the interest expenses for the Bank at higher side.
BACKGROUND AND DOMESTIC OPERATIONS BACKGROUND OF THE BANK
Indian Overseas Bank (IOB) was founded on 10th February 1937 by Shri M. Ct. M. Chidambaram Chettyar, a pioneer in many fields. IOB was one of the 14 major Banks that were nationalized in 1969. On the eve of Nationalisation in 1969, IOB had 195 Branches in India with aggregate deposits of Rs.67.70 Crore and advances of Rs.44.90 Crore. Presently, the Bank has its overseas presence in 4 countries: Singapore, Hongkong, Thailand and Sri Lanka.
The Bank has also sponsored Odisha Gramya Bank in Odisha.
Key Highlights
> The Bank has 87 years of service excellence in Banking.
> Strong Domestic presence of 3236 Branches & 3506 ATMs and 6379 Business Correspondents provides extended reach to customers.
> 58% of Branches catering to the needs of Rural and Semi Urban centers enhancing deeper Financial Inclusion.
> A strong Brand name in South India especially in the State of Tamil Nadu.
> Trust of 41 million active customers.
> Overseas Presence with 4 Branches.
> Sustained Growth in Low-cost CASA deposits, performance in Retail, Agri and MSME Segments contributing to 72.59% of Domestic Advances.
Banks Operations
Domestic Deposits
The Banks total domestic deposits stood at Rs.278968 Crores as on 31st March 2024 as against Rs.254324 Crores as on 31st March 2023. The domestic CASA has increased from Rs.112093 Crores as on 31st March 2023 to Rs.123435 Crores as on 31st March 2024. It is also to mention that the domestic savings Bank deposits have grown from Rs.97211 Crores as on 31st March 2023 to Rs.102328 Crores as on 31st March 2024. The domestic CASA% stands at 44.25% as of March 2024.
Domestic Advances
With a view to diversify the Risk and to improve the margins, the Bank focused more on Retail, Agri and MSME sectors during the fiscal year. The Domestic Gross Advances stood at Rs.200697 Crores as on 31st March 2024 as against Rs.173668 Crores as on 31st March 2023. It is noteworthy to mention that the Domestic Gross Advances have grown by 15.56%.
Treasury Operations
The profit on sale of investments was at Rs.272.44 crores during 2023-24 (Rs.249.86 Crores during 2022-23) before accounting category transfer loss at Rs.256.38 crores as against Rs.137.57 crores in the previous year. The profit on exchange from Forex business stood at Rs. 161.57 crores as against Rs.536.65 crores in the previous year.
Investments
Net investments of the Bank were at Rs.95,476.65* crores as of 31st March 2024 as against Rs.94,170.41 crores as on 31st March 2023. Total Profit including sale of securities & profit on exchange amounted to Rs.434.01 crores during the year 2023-24 as against Rs.786.51 crores during the year 2022-23. 10-year Benchmark yield has moved down from 7.31% to 7.05% during the year.
* Investments relate only to Treasury (Domestic) as per Schedule 8 certified by the Statutory Auditors.
OVERSEAS OPERATIONS
The Bank has 5 establishments abroad, including 4 Overseas Branches, and 1 Joint Venture Subsidiary as on 31st March 2024. The Bank has one Branch each at Singapore, Hong Kong, Bangkok and Colombo. India International Bank (Malaysia) Berhad - a Joint Venture of Bank of Baroda, Indian Overseas Bank and Union Bank of India, is functioning in Malaysia.
The Overseas Business (except JV-IIBMB) stood at Rs.25,259 Crore as of 31st March 2024 as compared to Rs.21,899 Crore as of 31st March 2023. Business of JV-IIBMB stood at Rs.414.65 crores as of 31st March 2024.
Treasury Operations
The profit on sale of investments (Overseas Centres) was at Rs.0.80 crores during 2023-24. The profit on exchange from Forex business stood at Rs.27.64 crores as on 31.03.2024 as against Rs.27.20 crores in the previous year.
Investments
Net investments of the Bank (Overseas Centres) were at Rs.4155.42 crores as of 31st March 2024. Total Profit including sale of securities & profit on exchange amounted to Rs.29.51 crores during the year 2023-24.
MSME PERFORMANCE
In order to facilitate the promotion and development of Micro, Small and Medium Enterprises, the Government of India enacted THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT 2006 (MSMED ACT 2006). The Act became operational from 02.10.2006 and further notified the new criteria vide Gazette Notification No CG-DL-E-26062020-220191 dated June 26, 2020.
RBI vide their communication letter no RBI/2020-21/10 FIDD. MSME&NFS.BC.No 3/06.02.31/2020-21, dated 02.07.2020 advised the revised guidelines for classification of an Enterprises as MSME which have come into force w.e.f. July 01, 2020.
RBI vide Circular No. RBI/2021-2022/67FIDD.MSME&NFS.BC.No.13/06.02.31 /2021-22 dated 07.07.2021, with respect to Definition of Micro, Small and Medium Enterprises - Addition of Retail and Wholesale Trade.
Various categories of Micro, Small and Medium Enterprises are defined as under:
| Category | Investment in Plant and Machinery/ Equipment Cost (WDV) | Turn Over |
| Micro | Up to Rs.1.00 Crore | Up to Rs.5.00 Crore |
| Small | Above Rs.1.00 Crore & Up to Rs.10.00 Crore | Above Rs.5.00 Crore & Up to Rs.50.00 Crore |
| Medium | Above Rs.10.00 Crore & Up to Rs.50.00 Crore | Above Rs.50.00 Crore & Up to Rs.250.00 Crore |
| The Investment & Turnover criteria made uniform for both Manufacturing and Service Enterprises |
RBI vide Circular No. RBI/2021-2022/100 FIDD.MSME&NFS.BC.No.13 /06.02.31 /2023-24 dated 28.12.2023, has clarified that Udyam Registration Certificate is mandatory for Priority Sector Lending classification. More than 75% of MSME portfolio qualified for classification under PSL category and we are in the process of obtaining Udyam Assist Number (UAN) for all the informal micro enterprises.
The share of credit to Micro, Small and Medium Enterprises stood at Rs.41552 Crores as on 31st March 2024 registering y-o-y growth of 19%.
Bank has sanctioned 508883 number of fresh Pradhan Mantri Mudra Yojana (PMMY) loans amounting to Rs.5079.45 crores and disbursed Rs.5041.26 crores as on 31st March 2024 vis-a-vis target of Rs.4500 crores. MUDRA facilitation desk is created, and Mudra Nodal Officer is designated at all Branches.
Bank has sanctioned 240 loans amounting to Rs.31.86 crore under Stand-Up India Scheme during the FY 2023-24.
Bank has sanctioned 182031 PM SVANidhi applications amounting to Rs.243.06 crores and disbursed Rs.194.40 crores from the scheme launched date i.e. 02.07.2020 till 31.03.2024.
Bank has enrolled as Member Lending Institution with NCGTC to secure all Retail Trade advances sanctioned under MUDRA Scheme (Loan amount upto Rs.10.00 lakh) under the guarantee cover from CGFMU Scheme. As on March 31st, 2024, we have covered 71108 accounts with an exposure of Rs.1707.76 crore under CGFMU Scheme.
The Bank has also implemented the "Policy on Revival and Rehabilitation of MSMEs" under the New Framework of RBI and ensured formation of committees at all Regional Offices to consider extending Relief to MSME units under Stress.
Specialized MSME and Focused Branches
As per the Regulatory guidelines, the Bank has opened 22 Specialized SME branches across PAN India. In addition to that, we have identified 144 MSME Branches with MSME growth potential and designated them as MSME Focused Branches.
1) These branches are equipped with necessary infrastructure and proper manning of staff.
2) We have imparted training to the Branch Heads / Credit Officers on MSME lending.
3) We have designated one MSME Relationship Officer in all the Branches.
4) Assigned special targets and monitoring the progress regularly.
Lead Generation
Branches have been provided with login access to view and capture the leads i.e., applications marked to the Bank in Standupmitra / Udyamimitra portal. Processing and marking of GST leads has been provided to branches in IOB online and thereby ensuring quick processing and disposal of the applications. We are soliciting business through the existing client base by approaching their suppliers/relatives/friends etc. and offering our services.
Designated MSME Officers at Field Level
Bank has taken various steps and reduced the turnaround time (TAT) for processing the MSME credit proposals at all layers. Bank has designated MSME Nodal Officers at all Regional Offices to facilitate quick sanction of MSME loans and follow up of NPA accounts.
MSME Marketing Officers have been identified / designated in all the branches (excluding single man branches). Marketing Officers / MSME Nodal Officers at Regional Offices have been coordinating with all the branches / customers.
Training and Development
Bank has been organizing Special Training Camps at 12 RSETIs spread across Tamil Nadu and Kerala states, provides necessary training / hand holding support to SC, ST, Women beneficiaries and supporting them for their financial needs through credit linkage under Mudra / Stand-up India Schemes and facilitating them to take up gainful employment.
Bank has entered Tie-Up arrangement with reputed organizations viz., NIBM / B Q Global and providing training to the staff members regularly. Bank is also conducting workshops in Staff Training Centres across PAN Indiaand creating awareness among the staff on MSME regulatory guidelines, schemes and Govt. sponsored schemes viz., Mudra, Stand-up India, PMEGP etc., and nominating staff to the NAMCABS workshops organized by RBI on a regular basis.
Psbloansin59minutes.com
Bank has boarded in the www.psbloansin59minutes .com portal as financier. The platform handles MSME loan proposals up to Rs.500.00 lakh. Further the platform handles Mudra Loan up to Rs.10 lakhs. We are encouraging all our existing as well as new customers for registration under GST and for on boarding the platform to support their credit needs.
Jan Samarth Portal
Bank has on-boarded Jan Samarth Portal - National Portal for all Credit Linked Government Schemes (AatmaNir- bhar Project). The platform facilitates 13 Central Government Schemes.
Bill Discounting through TReDS Platform
Bank has entered a Tie up arrangement with RXIL, A Trade and M1Xchange and also enrolled as a member, participating in the TReDS platform for financing against receivables of MSMEs in the online platform.
In the FY 2023-24, the number of designated branches for dealing the TReDS transactions also increased from five to nine branches. The outstanding under all the TReDS platform stood at Rs.6377.00 crores as on 31.03.2024.
Co-Lending
> Bank has formulated the policy on Co-lending and on boarded Knight Fintech as digital partner for extending technical support and hassle-free disbursement for co-lending arrangement.
Bank has entered a Co-lending arrangement with the following NBFCs for MSME loans.
• M/s Vedika Credit Capital Limited
• M/s Ugro Capital Limited
• Electronica Finance Limited
• InCred Financial Ltd.
• IndiaBulls Commercial Credits Ltd., MSME
• IIFL Samasta Finance Limited
• CSL Finance Ltd.
• SK Finance Ltd.
> Bank has sanctioned and disbursed loans in partnership with Capri Gold & IIFL through digital platforms.
Cluster Finance
Bank has identified twelve potential Clusters PAN India, formulated special schemes to promote MSME credit and is in the process of identifying more such Clusters.
| Ceramic Industry | Morvi, Gujarat |
| Textiles Industry | Coimbatore, Tamil Nadu |
| Engineering goods | Coimbatore, Tamil Nadu |
| Auto components | Chennai / Kancheepuram, Tamil Nadu |
| Auto components | NCR Delhi |
| Engineering & Packaging | NCR Delhi |
| Plywood Industry | Perumbavoor, Kerala |
| Hosiery / Textiles | Ludhiana, Punjab |
| Auto / Bicycle components | Ludhiana, Punjab |
| Textile Cluster | Surat, Gujarat |
| Textile Cluster | Tiruchengode, Tamil Nadu |
| Auto Component | Hosur & Krishnagiri, Tamil Nadu |
MSME Portal in IOB ONLINE
Exclusive MSME portal has been created in IOB ONLINE (an Intranet site) with all the latest updates on Bank/ Regulatory guidelines related to MSME, to facilitate Branches / Regions with the latest information.
Digital and Technology Initiatives
The Department undertakes the following Digital and Technology Initiatives:
> Loan Application Register with e-Tracking
Bank has introduced online registration of loan applications with e-tracking facility. It is mandatory to enter all loan applications through the system. The system generates a Unique ID number, which is to be incorporated in all proposals to track the status of the proposals. The system generates SMS alerts, e-mails reminders to all layers of authority for close follow up /monitoring and facilitates to improve the Turnaround Time (TAT) besides containing the rejections.
> Automation of Loan up to Rs. 10.00 lakhs
Bank has automated the MSME loan processing for loan amounts up to Rs.10.00 lakh and integrated it with the CBS system (Finacle) with an end-to-end solution. The platform supports the user for generating Rating, Inspection Reports, Process Note, Sanction, Documentation, Loan Master creation etc., simply by keying in the required basic information in the data sheet. This facilitates structured way of lending and ensures compliance of the policy guidelines, quick disposal of proposals with reduced Turnaround Time (TAT). All the loans up to Rs 10.00 lakhs are fully automated.
> Online Processing of Loans under the Scheme IOB SME Easy and IOB ETF Schemes
During the Current FY, Bank has introduced online processing of proposals from Rs.10.00 lakhs to Rs. 5.00 crores under IOB SME Easy scheme and IOB ETF Scheme. The platform is designed with Automated Assessment, Rating, Office Note generation and Sanction.
> Launch of Digital Channel for Loan Application Registration
Internet Banking, Mobile Banking, SMS, Missed Calls, IVRS and Bank websites are enabling registration of applications for MSME Loans. These channels are making up close to 1100 leads per month.
> Dedicated Call Centre for MSME Loan Leads
We have appointed a call center executive and their services are utilized to handle the leads based on TAT assigned. On an average, 50 leads are being handled on a daily basis with on-the-spot eligibility checks and applications are escalated to the branches based on customers choice.
> New Channels for Loan Applications
Bank is in the process of launching WhatsApp Banking and Chat Bot assistance for loan applications. These channels will be utilizing analytics-based systems for smooth transitioning of loan requests.
> LOS and LMS
Bank is in the process of bringing sophisticated LOS and LMS and in the first phase few MSME loans will be covered. This initiative will boost our MSME segment with real time acquisition of customers.
RETAIL BANKING
The total outstanding under Retail Credit Portfolio increased from Rs.42400 crores as of March 2023 to Rs.48514 Crores as of March 2024. The Bank registered Y-o-Y growth of 14.42% during FY 2023-24. The overall Retail share to domestic advances is 24.17%.
Housing Loan Portfolio Registered Y-o-Y growth of 14.53% during FY 2023-24. Fresh Housing Loans sanctioned during the period under review are 25288 accounts, amounting to Rs.7216.17 crores as against the previous FY 2022-23 figure of 24872 accounts amounting to Rs.6398.80 Crores. The Total Disbursement as on 31.03.2023 was Rs.6236.32 crores which has increased and stood at Rs.6998 Crores in the FY 2023-24.
Vehicle Loan Portfolio has registered Y-o-Y growth of 19.73% during the FY 2023-24 as compared to 7.42% growth achieved during FY 2022-23.
Mortgage Loan Portfolio has shown a growth of 42.24%.
Personal Loan Portfolio has shown a growth of 35.50% and Jewel Loan Portfolio has shown a growth of 40.15% during FY 2023-24.
Modification in Existing Scheme
Keeping in view the demand and requirements of branches and in line with the offerings of other Banks in the market and to make our products more competitive, we have gathered inputs and made suitable modifications in the below mentioned schemes to make them move in the market as a competitive product.
1. Personal Loan
Bank has revamped our personal loan product by increasing the quantum of Finance to Rs.30 Lakhs for employees under Category A and B and increasing the Loan quantum on Personal Loan CC for salaried employees to Rs.15 Lakhs.
2. Loan Against Property
After conducting market study and exploring the possibilities of growth in this segment, the Bank has introduced lending to Non individuals and increased the quantum of lending to Rs.20 Crores for individual borrowers and Rs.40 Crores to non-individual borrowers.
3. Housing Loan
Housing Loan is one of the most important and fast-growing segments of the Bank. To cope up with the market requirements and to be very aggressive in the market, revamping of the schemes including Home Advantage Scheme along with offering best rate of interest by introducing differential Rate of interest for Salaried and Self-employed borrowers has been done.
4. Vidya Jyothi Scheme
The scheme has been modified as per IBA model and the quantum of loan amount has been increased to Rs.150 Lakhs for Inland Studies and Rs 300 Lakh for Foreign studies.
5. Liquirent Scheme
To make the scheme more attractive in the market and considering the demand and potential, the rate of interest has been rationalized.
6. Vehicle Loan
Rating-based pricing for all fresh Vehicle loans, irrespective of loan amount for individual and non-individual borrowers has been introduced.
Electric Two-wheelers manufactured by reputed manufacturers of electric vehicles have also been permitted for financing under the scheme.
Introduction of New Products/ Initiatives under Retail Credit Portfolio
Considering the inputs received from branches and demand in the market, we have introduced the following new Retail Products/Initiatives during the FY 2023-24.
1. To tap the vast potential available in the Personal Loan category and in line with market expectations, we have launched Personal Loan Top Up scheme for our A category Personal Loan borrowers with maximum loan amount of Rs.7.50 Lakh.
2. Introduction of Capital Light Asset Product "Loan Against Sovereign Gold Bond" for individuals and nonindividuals with maximum lending at Rs.25 Lakhs and Rs. 500 Lakhs respectively.
3. To widen the clientele base and to explore the possibility of getting good Housing loans by taking over from HFC/ NBFC, an additional number of reputed NBFC and HFCs have been on-boarded.
4. Bank has introduced Odisha State Specific Housing Loan scheme - MO GHARA.
5. Bank has introduced Tamil Nadu State Specific Housing Loan scheme AHP and BLC under PMAY for EWS.
6. Bank has signed an MOU with Maruti Suzuki Limited to finance their various vehicles in the month of September 2023.
7. Bank has introduced Karnataka State Specific Housing Loan scheme AHP under PMAY for EWS.
8. To improve the quality of credit and to ensure quick TAT, the first Retail Loan processing Centre has been set up at Hyderabad. Retail Loan Processing centres in other major centres at Mumbai, Coimbatore, Lucknow, Chennai, Delhi, Bangalore and Kolkata-I will be opened shortly.
Digital Initiatives
1. To transform lending process to improved system-based assessment and for greater customer satisfaction, Bank has launched digitized Vehicle Loan under Branch Journey in Loan Originating System (LOS).
2. Digitization of Loan Against Deposit in Branch Journey under Loan Origination System.
3. Digitization of Loan Against Insurance Policy in branch journey in Loan Origination System.
4. Digitization of Pension Loan under branch journey in Loan Origination System.
CORPORATE CREDIT
Corporate credit Banking refers to the provision of financial services by Banks to corporate clients [other than MSME/Agri segment]. These services typically include lending, underwriting, advisory, and other financial products tailored to the needs of corporations and large businesses. Corporate credit Banking plays a vital role in supporting the growth and development of corporate businesses by providing them with timely access to funds, financial expertise, and Risk management solutions to navigate the complexities of the modern business environment. With the present market scenario and Banks internal Risk appetite, we continue to provide thrust in expanding our exposure in capital light assets, wherein the Bank focuses mainly on AAA/AA rated accounts and PSU/ Government guaranteed exposure spread over various core industries and other segments. Further, to capitalize the ongoing demand on the financial service segment, the Bank is also expanding its structural exposure in the onward lending segment of Housing/MSME/Consumer finance/Vehicle finance. As part of "Azadi Ka Amrit Mahotsav" initiative in nation building, the Bank continues to focus on infrastructure lending & related parties [EPC clients] of repute. Under this vertical, the Bank has Standard Fund based exposure of Rs.55398 crores as on 31.03.2024. We have already floated customized loan products where ROI is linked to market rates. This helps the better rated Corporates to access credit at market determined rates.
PRIORITY SECTOR CREDIT
The average growth of four quarters for the FY 2023-24 was Rs.2528.25 Crs and the average Outstanding stood at Rs.97232.88 Crs against the target of Rs.58139.97 Crs and the Bank has surpassed the mandatory norms of 40% of ANBC by achieving 66.90% under Total Priority Sector Advances during FY 2023-24.
Agriculture
The average growth of four quarters for the FY 2023-24 was Rs.2099.19 Crs and the average outstanding stood at Rs. 48297.00 Crs against the target of Rs.26162.99 Crs and the Bank has surpassed the mandatory norms of 18% of ANBC by achieving 33.23% under Agriculture advances during FY 2023-24.
Loans to Small and Marginal farmers
The average growth of four quarters for the FY 2023-24 was Rs.1886.78 Crs and the average outstanding stood at Rs.34552.33 Crs against the target of Rs.14534.99 Crs and the Bank has surpassed the mandatory norms of 10% of ANBC by achieving 23.77% under loans to Small/ Marginal farmers during FY 2023-24.
Loans to Non-Corporate farmers
The average growth of four quarters for FY 2023-24 was Rs.1819.50 Crs and the average outstanding stood at Rs.47237.17 Crs against the target of Rs.20029.22 Crs and the Bank has surpassed the mandatory norms of 13.78% of ANBC by achieving 32.50% under loans to Small/ Marginal farmers during FY 2023-24.
Loans to Micro Enterprises
The average growth of four quarters for FY 2023-24 was Rs.166.01 Crs and the average outstanding stood at Rs.22880.69 Crs against the target of Rs. 10901.24 Crs and the Bank has surpassed the mandatory norms of 7.5% of ANBC by achieving 15.74% under loans to Micro Enterprises during FY 2023-24.
Loans to Weaker Section
The average growth of four quarters for the FY 2023-24 was Rs.1658.65 Crs and the average outstanding of four quarters for the FY 2023-24 stood at Rs.39727.01 Crs against the target of Rs.17441.99 Crs and the Bank has surpassed the mandatory norms of 12.00% of ANBC by achieving 27.33% under loans to Weaker Section.
Microfinance
During the year, the Bank credit-linked 69618 Self Help Groups (SHGs) with a credit outlay of Rs. 2946.84 Crs. The cumulative number of SHGs credit linked by the Bank is 1011294 and with aggregate disbursement of Rs.100076.21 Crs as of March 2024.
Specialized SHG Credit Centre
30 Branches with 5 branches in a Cluster in 19 Regions of our Bank have been formed as Special SHG Credit Centre for processing of SHG loans from nearby branches. During the FY 2023-24, Rs.740.58 Crs have been disbursed to 13378 SHG groups by the Specialized SHG Credit Centre.
Credit flow to women borrowers
Banks credit to women borrowers stood at Rs.40591.59 crores as on 31st March 2024 which constitutes 23.28% of the Banks Adjusted Net Bank Credit.
Lead Bank Initiatives
The Bank has Lead Bank responsibilities in 15 districts of Tamil Nadu and 1 district in Kerala. The Bank is also the Convenor of State Level Bankers Committee of Tamil Nadu (SLBC). During the year, as Convenor of SLBC, Tamil Nadu, the Bank has conducted three main meetings and 4 Special SLBC meetings.
In addition, the Bank as convenor of SLBC, Tamil Nadu has also convened 3 Subcommittee and 3 Steering committee meetings during the year.
SLBC Initiatives for Financial Inclusion
> In the state of Tamil Nadu, 146.54 lakhs PMJDY accounts are opened upto 31st March 2024. The number of female accounts is 86.89 lakhs and the number of male accounts is 59.57 lakhs.
> In the state of Tamil Nadu, the enrolments under Jan Suraksha Schemes have reached 292.35 lakhs as of March 2024, which includes 79.54 lakhs enrolments under PMJJBY and 212.81 lakhs enrolments under PMSBY.
> The Aadhaar saturation for the State of Tamil Nadu is 102%.
SLBC initiatives on Credit Flow in Tamil Nadu
Banks in Tamil Nadu have achieved the following as of March 2024:
> CD ratio of Banks in the State continues to be above 100% and as of March 2024, the CD ratio stands at 120.62%.
> 47.65% under Priority Sector against the national norms of 40%.
> 25.15% of Agricultural Advances against the national norms of 18%.
> 20.80% of advances to weaker sections against the national norm of 10%.
FINANCIAL INCLUSION
Our Bank has engaged M/s. Integra Micro Systems Pvt. Ltd., as our Technology Service Provider (TSP) and Six CBCs namely Integra Microsystems Pvt. Ltd., M/s. Atyati Technologies Pvt. Ltd., M/s. FIA Technology Pvt. Ltd., M/s. Starfin India Pvt. Ltd., M/s. Zero Mass Pvt. Ltd., and M/s. RNFI Services Ltd., for the management of Business Correspondent Agents across Pan-India. BCAs are engaged for opening of accounts, collection of small value deposits, enrolment of customers under JanSuraksha Schemes like APY, PMJJBY and PMSBY, recovery in loan accounts including NPA accounts, mobilizing deposits and collecting RD instalments.
Pradhan Mantri Jan Dhan Yojana (PMJDY)
The Bank has implemented PMJDY as per the directives of the Ministry of Finance, Govt. of India. The Scheme was launched by the Prime Minister of India on 15th August 2014. Our Bank has opened 78,93,343 PMJDY Accounts as on 31.03.2024, out of which 72,68,513 (92%) are operative accounts. We have issued 52,63,189 RuPay Debit Cards till 31st March 2024 and activated 44,54,421 cards (84.63%) in the operative PMJDY accounts under this scheme.
Aadhaar enrolment and update centres as per Aadhaar Regulations, 2016
Our Bank has established Aadhaar Enrolment Centres (AECs) in 379 Branches all over India in line with UIDAI guidelines and engaged M/s. Vee Technologies Pvt. Ltd. as a vendor for outsourcing of manpower in all the Aadhaar Enrolment Centres of our Bank since 9th July 2021.
Jansuraksha Schemes
The Jan Suraksha Schemes were launched by the Prime Minister of India on 1st June 2015. The Bank is enrolling customers under Jan Suraksha schemes viz PMJJBY and PMSBY. As on 31st March 2024, the enrolment count under Jan Suraksha schemes is as below:
| Schemes | Status of Enrolment as on 31st March 2024 (Cumulative) | Status of Enrolment during the FY 2023-24 |
| PMJJBY | 3035811 | 802117 |
| PMSBY | 7057101 | 2249741 |
| Total | 10092912 | 3051858 |
As "Enhanced Access & Service Excellence" (EASE) framework - mandates massive expansion in micro insurance coverage. Our Bank has automated enrolments in the above schemes while sanctioning loans under MSME /Agri/Retail. Bank has also enabled provision for enrolling PMJJBY/PMSBY through Net Banking and SMS/ missed calls.
Atal Pension Yojana
Atal Pension Yojana (APY) is an old age income security scheme for a savings account holder in the age group of 18-40 years who is not an income tax-payee. The scheme helps in addressing the longevity Risks among the workers in the unorganized sector and encourages the workers to voluntarily save for their retirement.
Performance under APY over the years is as follows:
| Financial Year | Enrolments |
| 2015-16 | 18,540 |
| 2016-17 | 60,084 |
| 2017-18 | 1,11,959 |
| Financial Year | Enrolments |
| 2018-19 | 1,03,711 |
| 2019-20 | 1,50,010 |
| 2020-21 | 1,79,081 |
| 2021-22 | 2,32,860 |
| 2022-23 | 2,77,710 |
| 2023-24 | 2,61,318 |
| Total APY Enrolments (Cumulative) | 13,95,273 |
Rural Self Employment Training Institutes (RSETIs)
In line with the guidelines issued by Ministry of Rural Development, Govt of India, the Bank had set up total 14 RSETIs in all Lead Districts in the State of Tamil Nadu, to provide training to farmers, members of SHGs, educated unemployed youths, artisans and beneficiaries belonging to weaker sections. The RSETIs are managed by SNEHA Trust established by the Bank. During the year under review, the RSETIs have conducted 4212 training programs benefiting 112059 participants which include 79780 women, 32071 men and 208 Transgenders. Bank has achieved cumulative settlement of 73.46% and cumulative credit settlement of 55.75% which are well above the national average of 70% and 50% respectively. All the RSETI are rated AA by MoRD.
Financial Literacy
Financial Literacy is imparted through Financial Literacy Centres (SNEHA) established at 24 locations under Corporate Social Responsibility. The counsellors of these centres educate the people in rural and urban areas with regard to various financial products and services available from formal financial institutions, provide face- to-face financial counselling services and offer debt counselling to indebted individuals. They are also conducting periodical camps at various places. As on 31st March 2024, 80,724 credit counselling have been conducted by the FLCs since inception. 13,812 Financial Literacy camps were conducted on various aspects of Banking and 1,46,359 SB accounts have been sourced and opened since inception. 4,641 Special camps for newly included people in the financial system were conducted covering 3,78,461 beneficiaries. FLCs conducted FL sessions at 115 ITIs, 7 Vocational Training partners (VTPs) and 3 Operational Centres (OCs) and imparted Financial Literacy to 20,839 Students.
Centre for Financial Literacy (CFL):
One of the milestones of the National Strategy for Financial Inclusion (NSFI: 2019-2024) is to expand the reach of CFLs to every block of the Country. RBI has allotted a total of 74 centres for CFLs to our Bank with 65 in the State of Tamil Nadu and 9 in Kerala for financial literacy through M/s Dhan Foundation (NGO). The CFLs have been designed to raise financial awareness, promote good financial practices, and drive sustainable change in behaviour, ultimately resulting in informed financial choices and greater sense of control over ones finances. These centres use a combination of educational videos, experiential learning, and financial planning tools to drive home key messages and benefits of using formal financial services. Our Banks CFLs have been committed to strengthening the financial capabilities of socially and economically disadvantaged communities and minimising every households financial vulnerability. Our Banks CFL ensures promoting better financial practices in the community, creating an enabling environment, and developing a network of trained financial inclusion experts which are crucial to driving financial inclusion to the last mile.
PERFORMANCE ON PARA-BANKING PRODUCTS
Under Para Banking business, the Bank has earned an income of Rs.29.94 Crores during FY 2023-24 through Bancassurance & Distribution of Mutual funds. Various campaigns to promote and increase para Banking business were conducted during the year including activities with Corporate Social Responsibility.
Product Launched during the FY 2023-24
We have introduced the following new products during the FY 2023-24.
1. Niva Bupa Health Insurance
NTB_1999 - NTB_1999 is a group product offered as a value-added feature to New to Bank (NTB) customers. The features are as follows:
• Base sum Insured - 2.00 Lakhs
• Premium amount - Rs.1999/-
• Hospitalization Coverage of Rs.2.00 Lakhs (Base Sum Insured).
• Personal Accidental Insurance Coverage of Rs.20.00 Lakhs.
• Hospital Daily Cash Coverage of maximum Rs.40000/-
ReAssure 2.0 - ReAssure 2.0 is a retail insurance product which has been reintroduced with the following features.
• Base sum insured 5 Lacs to 1 Crore.
• The main feature of the Re-Assure 2.0 Product is "unlimited reinstatement of sum insured applicable for any illness, or anyone insured" (single claim under this benefit will be payable up to base sum insured).
• Carry forward any unused base sum insured to the next policy year.
• After the first claim is paid ReAssure gets ON And Stays ON, FOREVER!!
• Lock the Clock Facility - Part of ReAssure + Benefit. The premium of the age of the policyholder entered at, will apply until a claim is paid.
2. Universal Sompo General Insurance
Group Credit Protection Policy - Group Credit Protection Policy is a group insurance product introduced by our Bank exclusively for our loan borrowers in tie up with USGIC. The policy provides Group critical coverage for 41 critical illnesses.
• Base Sum Insured Maximum 5 Crores.
• The Plan covers 41 Critical illnesses.
• Initial Waiting Period: 60 Days.
• Survival Period: Waived.
• Involuntary Loss of Jobs: 6 EMIs.
• Reimbursement of cost of Performance of Funeral Ceremony: Rs.5000.
• Repatriation of mortal remains: Maximum Rs.10,000.
• Education Benefit: Rs. 3 Lakhs
Campaign conducted for Social Cause
Our Bank has launched a Health Insurance campaign named as PRATISHTHA Campaign 3.0 in tie up with Niva Bupa Health Insurance Co. Ltd during the period 13.11.2023 to 15.01.2024. The objective of the campaign is to donate 50000 Meals to needy Indians in Old Age Homes and Orphanages.
The criteria of the campaign was, for every Rs.2000/- premium mobilized by branches - one feed point will be awarded and for every FEED point Niva Bupa Health Insurance will donate ONE MEAL expense to NGO on behalf of Indian Overseas Bank under the campaign.
Our Branches took up the challenge and sourced 11254 Policies with a net premium of Rs.6.62 Crores which has contributed 33114 Pledge Points and thereby donating 33114 meals for needy people against the target of 50,000 meals under campaign.
ASBA (BANKER TO ISSUE ACTIVITY)
All our general Banking branches in India have been made ASBA enabled branches to accept ASBA applications for IPO, FPO and Rights Issues. e-ASBA continued to be in usage effectively by our customers. ASBA through the UPI process has also been enabled.
Depository Operations: The Bank continues to act as Depository Participant (DP) of NSDL and CDSL and is extending depository related services through service centre branches.
e-Trading facility in tie up with SMC Global Securities Ltd. E-trading facility has been implemented to provide trading facility to our demat account holders.
CUSTOMER SERVICE
Bank is constantly striving to provide logical and acceptable solutions to customers grievances to retain our Good and valuable customers apart from helping them to decide on the right products, services and counselling them to take financial decisions. We are also committed to resolve the complaints within TAT (Turn Around Time) and for a speedy resolution.
To support the customer service system, Our Bank has its own Contact centre along with IVRS facility which provides 24*7*365 days services handling Queries/ Complaints of the customers and providing solutions.
Grievance Redressal Mechanism:
Our Banks complaint grievance redressal portal is called Standardized Public Grievances Redressal Mechanism (SPGRS) with the status tracking facility which is available on our website, so that customers can lodge their complaint online.
The SPGRS Portal facilitates the customer to easily lodge the Query/Complaint as per the categories provided therein. It also has an MIS, escalation Matrix and provision to capture granular details of the complaints, enabling the Bank to take corrective action. Future courses of actions and policies on Grievances Redressal are made based on the analysis from the MIS. Complaint details are available on a real time basis and access by various layers of offices enable effective redressal mechanism. Provision to capture customer feedback is also inbuilt in the portal.
Apart from SPGRS and Contact Centre, we handle complaints received from Banking Ombudsman (RBI), CPGRAMS (Centralized Public Grievances Redress and Monitoring System) maintained by Department of Administrative Reforms and Public Grievance, INGRAMS (Integrated Grievance Redressal Mechanism) maintained by Department of Consumer Affairs.
Bank has introduced various customer friendly initiatives, to provide ease to customers. Some of them are listed below:
1. (a) We have modified our Banks Internal Grievance Portal i.e., SPGRS into Bilingual format i.e., Hindi
and English, which will give ease to customers to lodge the complaint.
(b) Facility of Tracking Complaints: Once a Complaint is lodged in SPGRS portal, an auto acknowledgement is generated along with complaint ID and it is sent to the complainants registered Mobile and e-mail ID. Subsequently, the complaint status can be tracked through the link provided in SMS and e-mail till the redressal of the complaint.
(c) There is an option to re-open the complaint by the complainant, if the complaint redressed by the Bank is not resolved. Also, if the complainant is not satisfied with the Banks resolution, he/she can escalate to the Banking Ombudsman through the link provided after the resolution of complaint by the Bank.
(d) SPGRS Portal has the option for the customer to register the feedback of the customer if he/ She is not satisfied with the redressal by the Bank.
2. Bank has given other various options to customers to lodge the complaints:
• Through Online mode by visiting the website
• Through Toll Free call Centre
• Through Banks Internet Banking Page
• Through Letter/Email.
3. Grievance Redressal Day: Grievance Redressal Meeting is held at branch level in PAN India on 15th of every month. Department is placing feedback and suggestions received from customers before the Customer Service Committee of the Board.
4. Grievance Disposal Day: Grievance Disposal Day was introduced and it is being conducted on the last Friday of every month for speedy processing of complaints.
5. Customer Relationship Management (CRM): Bank has launched CRM on 14.03.2024 as a part of Digital Initiative and an Integrated complaint mechanism is being introduced to assist Customers for speedy resolution of complaints.
Customer Contact Centre and Lead Management Process:
• We are having dedicated 24x7, 360-degree Omni channel Contact cum Call Centre to receive the complaints and redress them along with IVRS facility. Service provider also records and pushes the data related to service requests to the Bank, facilitating efficient redressal of the same.
• Contact cum Call Center receives - Queries, Requests and Complaints (QRC) from the customers. These are lodged under the CRM (Customer Relationship Management) Programme of the Contact Center and are forwarded to respective departments for further actions, and for resolution of complaints, etc.
• Contact Centre Information has been ported to our IOB website.
• Regular Call Audit is being done and audit observations are shared with Contact Center for their compliance.
PSB Alliance Doorstep Banking:
As per the instruction of IBA and RBI, our Bank has implemented PSB alliance Doorstep Banking successfully.
• Bank stood 6th Position among PSU Banks in DSB (Doorstep Banking) Dastak Campaign conducted from 01.02.2024 - 15.03.2024.
• PSB Alliance Pvt. Ltd. has identified 1100 centers with 1469 active Branches for Doorstep Banking Services.
Achievement of the Department:
• For FY 2023-24, the grievance disposal by the Bank was all time high. We could contain the CPGRAMS and INGRAMS complaints to NIL.
• All Complaints were resolved within TAT and No complaints are pending for more than 30 days.
• Bank has not received AWARD for FY 2023-24 from RBI- Ombudsman Office.
• 16 Nodal Office of our Bank out of 22 Nodal Office handling Banking Ombudsman Complaint has brought down NIL Pendency in CMS Portal as on 31.03.2024.
• Quarterly Educative Series is being issued by the department, which has yielded good results. Department has already issued 16 Educative series circulars based on complaints received and Root Cause Analysis.
Details of Customer Complaints received and redressed during the year 2023-2024 is given below:
| Particulars | FY 2023-24 | FY 2022-23 |
| Number of complaints at the beginning of the year | 1950 | 2850 |
| Number of complaints received during the year | 257420 | 198307 |
| Number of complaints resolved during the year | 257353 | 199207 |
| Number of complaints pending at the end of the year | 2017 | 1950 |
| Effective Resolution Rate | 99.22% | 99.03% |
Categories of Complaints for the year ended 31.03.2024 is as follows:
| Nature of Complaints | Total Number of complaints in all Channels | % of Total Complaints |
| NON-DIGITAL | ||
| Advances | 2412 | 0.94 |
| Customer Service | 1118 | 0.43 |
| Demat | 89 | 0.03 |
| Deposits | 1693 | 0.66 |
| General Banking | 7054 | 2.74 |
| Government Business | 197 | 0.08 |
| Insurance | 861 | 0.33 |
| NRI Services | 130 | 0.05 |
| Pension | 896 | 0.35 |
| Others | 290 | 0.11 |
| Sub Total | 14740 | 5.73 |
| DIGITAL | ||
| Non-ATM | 169972 | 66.03 |
| ATM | 72708 | 28.24 |
| Sub Total | 242680 | 94.27 |
| Grand Total | 257420 | 100 |
CUSTOMER SERVICE COMMITTEE
The MD &CEO presides over the meetings of the committee. The committee met 4 times during the period 01.04.2023 to 31.03.2024. Number of meetings attended by each member of the committee during the year is as below:
| Sl. No. Name of Director | Tenure of membership | Number of Meetings Attended/held in FY 2023-24 | |
| From | To | ||
| 1 Shri Ajay Kumar Srivastava## | 01.01.2023 | Till Date | 4/4 |
| 2 Shri Joydeep Dutta Roy | 31.01.2024 | Till Date | 1/1 |
| 3 Smt. S Srimathy | 10.03.2021 | 09.03.2024 | 3/4 |
| 4 Shri Sanjay Vinayak Mudaliar | 01.01.2023 | 30.01.2024 | 3/3 |
| 5 Shri Suresh Kumar Rungta | 05.01.2022 | Till Date | 4/4 |
| 6 Shri Deepak Sharma | 05.01.2022 | Till Date | 4/4 |
## Membership since 09.10.2017 as Executive Director up to 31.12.2022, MD & CEO w.e.f. 01.01.2023
STRESSED ASSETS MANAGEMENT DEPARTMENT
1. Bank is continuously adopting various methods and recovery tools for reducing the Banks NPA portfolio and improving the profit level. Though the core objective in NPA recovery is recovery of the entire contractual dues without any hit on the profit front, in practice, due to various factors, the Bank had to shift the strategy for NPA recovery by other means including compromise settlements apart from taking other legal measures as may be warranted. Bank undertook various initiatives during the year for strengthening the recovery function and for improving the overall performance in the Recovery area.
2. Bank implemented and popularized a digital platform for One Time Settlements (OTS), online mechanism under the check box system wherein NPA borrowers can submit their OTS application in IOB online for accounts up to a cut off limit which will enable proper tracking system for the borrower to know the status of their proposals till it is resolved.
3. Bank also implemented digitalization in SARFAESI on 16.08.2023. Under this, Demand notices can be generated online by the branch and can be sent to the Borrowers/Guarantors through an Authorised Officer which saves the Banks resources as well as time and accelerates the recovery actions in NPA accounts. Since then, all the Demand notices are being issued through digital mode only. Digitalisation process of Possession Notice & Sale Notice has also been developed and implemented on 08.02.2024.
4. During the period under review, one of the recovery tools that has worked very well is the Special OTS Schemes. The special OTS Schemes were modified in such a way that for Non NCLT accounts, powers have been given to various layers of Authorities so that the outstanding NPA A/cs could be settled in a hassle- free manner without taking any long process for sanctioning of the OTS and conveying the same to the borrowers/guarantors. This scheme of Special OTS was made non-discretionary and non-discriminatory in nature. Total number of OTS sanctioned during the FY 2023-24 was 40584 accounts for an amount of Rs. 929.52 Crs and out of this, the Bank has so far recovered an amount of Rs 566.19 Crs.
5. Bank conducted E-Auctions for the properties possessed under SARFAESI Act every month till March 2024 through E-Bikray platform. Bank was able to put an E auction of 3918 properties and out of this, 310 Properties were sold fetching Rs.446.33 Crores under E-auction in FY 2023-24. Initiation of the E-auction procedure under SARFAESI had also paved the way for OTS, upgradation, and full closure in many NPA accounts. To bring more buyers, the Bank also engaged Debt Recovery Agents to mobilise bidders. Bank has made available all the eligible properties details in IOB Online where prospective buyers can search the property details and participate in the Auction. Bank has developed a trigger tool to generate leads from the prospective buyers who visit our website.
6. The total NPA recovery done by the Bank during the FY 2023-24 was around Rs. 4549.15 Crs which was higher than the total recovery done in the previous FY 2022-23 (Rs. 4502.31Crs) and thereby the Banks focus on Recovery remains unchanged and unwavering. The Bank will continue to keep the Recovery momentum going strong in the current financial year also.
DISPOSAL OF PETITIONS RECEIVED UNDER RTI ACT
RTI applications and appeals are handled by a separate and specialized cell called RTI Cell in the Bank. The RTI Cell is working under the control and supervision of Assistant General Manager, Law Department, who is designated as Central Public Information Officer (CPIO). The Bank has also designated Regional Managers as Central Assistant Public Information Officer (CAPIO) to assist CPIO in disposing RTI applications within the prescribed time frame (i.e., 30 days from the receipt of RTI application). There are 49 CAPIOs in our Bank.
Bank has designated General Manager, Law Department as First Appellate Authority (FAA) for disposing appeals filed by the appellants who were aggrieved with the reply of CPIO and CAPIOs.
Bank has received 1660 applications filed under RTI Act, 2005 for seeking information in the year 2023-24. 1670 RTI applications are duly disposed of as per the provisions of RTI Act, 2005 by CPIO and CAPIOs.
Bank has received 331 first appeals seeking further information against the reply of CPIO and CAPIO and 343 have been duly disposed of by FAA by passing appropriate order on merits and as per the provisions of RTI Act, 2005.
The appellants who were aggrieved with the reply of CPIO/CAPIO and FAA preferred second appeal before Honourable Central Information Commission (CIC), New Delhi. Bank received 54 notices in Second Appeals filed before CIC. All the second appeals were represented by CPIO/CAPIO and were duly disposed of by the Information Commissioner by passing appropriate order on merits without any adverse remarks against the Bank.
RISK MANAGEMENT
Risk taking is an integral part of the Banking business. Banks assume various types of Risks in their activities while providing different kinds of services based on its Risk appetite. Each transaction that the Bank undertakes changes the Risk profile of the Bank. In the normal course of business, a Bank is exposed to various Risks including Credit Risk, Market Risk and Operational Risk. The objective of Risk management is not to prohibit or prevent Risk taking activity, but to ensure that the Risks are consciously taken with full knowledge, clear purpose and understanding so that it can be measured and mitigated. With a view of managing such Risks efficiently and strengthening its Risk management systems, the Bank has put in place various Risk management measures and practices which include policies, tools, techniques, monitoring mechanism and management information systems (MIS).
The Bank, on a continuous basis, aims at enhancing and maximizing the shareholder values through achieving appropriate tradeoff between Risks and returns. The Banks Risk management objectives broadly cover proper identification, measurement, monitoring, control and mitigation of the Risks with a view to enunciate the Banks overall Risk philosophy. The Risk management strategy adopted by the Bank is based on understanding of Risks and the level of Risk appetite of the Bank. Banks Risk appetite is demonstrated broadly through prescription of Risk limits in various policies relating to Risk management.
The Bank has set up an appropriate Risk management organization structure in the Bank. The Risk Management Committee of the Board (RMCB), a sub-committee of the Board, is constituted which is responsible for management of Credit Risk, Market Risk, Operational Risk and Other Risks in the Bank. The Bank has also constituted internal Risk management committees namely Credit Risk Management Committee (CRMC) for managing credit Risk, Asset Liability Management Committee (ALCO), Funds Committee for managing Market Risk, Operational Risk Management Committee (ORMC) and Product/Process Risk Mitigation Committee (PRMC) for managing Operational Risk, and Information Security Committee for managing Information security.
A full-fledged Risk Management Department is functioning at the Banks Central Office, independent of the business departments for implementing best Risk management systems and practices in the Bank. Chief Risk Officer in the rank of General Manager of the Bank is in charge of the department who is responsible for overall supervision on Risk management in the Bank and is the convener for all the internal Risk management committees. The Mid-Office in Risk Management in particular, and other functional departments/ branches in general also carry out the Risk management functions and monitor the adherence/compliance to policies, Risk limit framework and internal approvals. Risk Managers have been nominated at Regional Offices to oversee the Credit Risk of the respective regional offices. Apart from coordinating with the Risk Management Department, Central Office for submission of various MIS, they participate in Regional Level Credit Approval Committees.
The basic approach to manage Risk more effectively lies with controlling the Risk at the point of its origination. Basel III guidelines have been introduced from 01.04.2013, and the Bank is maintaining capital as per the guidelines. Minimum Capital of 9% and Capital Conservation Buffer of 2.5% with overall CRAR of 11.50% have been prescribed by RBI in their BASEL III. The Basel-III Framework is based on three mutually reinforcing pillars. While the first pillar of the revised framework addresses the minimum capital requirement for credit, Market and Operational Risks, the second pillar of supervisory review process ensures that the Bank has adequate capital to address all the Risks in their business commensurate with Banks Risk profile and control environment. As per RBI Circular, the Bank has put in place a Board approved Policy on Internal Capital Adequacy Assessment Process (ICAAP) to address second pillar requirements. This policy aims at assessing all material Risks to which the Bank is exposed over and above the regulatory prescriptions under the first pillar Risks and ensuring adequate capital structure to meet the requirements on an ongoing basis.
The Bank has formulated a "Stress Testing framework" to assess the potential vulnerability of the organization to exceptional but plausible events in line with the guidelines issued by RBI on 2nd December 2013. Stress testing and scenario analysis, particularly in respect of the Banks material Risk exposure, enable identification of potential Risks inherent in a portfolio at times of economic recession and accordingly take suitable proactive steps to address the same. In accordance with the policy prescriptions, the Bank carries out various stress tests periodically on the Banks balance sheet and specific portfolios and places the reports to ALCO/ RMCB / Board.
Board approved Business Continuity Plan and Disaster Recovery plan is in place. The 3-way data centres have been implemented to facilitate Zero data loss, Multiple MPLS-VPN high bandwidth connections at all 3 data Centres and Central, Dual connectivity from different alternate service/alternate providers and alternate media for branches have been established. Firewall and Intrusion detection systems have been implemented. A Security Operating Centre (SOC) has been established by the Information System Security Department to monitor and analyse the information security incidents to take corrective steps while the IS Audit section takes care of the periodical Information Systems Audit of the Banks departments and branches. The Bank has fine-tuned the information security systems in accordance with RBI guidelines. Regular DR drills are being conducted every quarter. To ensure Network security, periodical Vulnerability assessment and Penetration testing exercises are conducted by external experts.
The Bank is also in the process of upgrading its Risk management systems and migrating to the advanced approaches envisaged under Basel III framework.
Reserve Bank of India has issued final guidelines on Liquidity Risk Management effective from March 2013. The guideline covers preparation and submission of consolidated Bank operations including domestic operations and overseas operations separately at various frequencies. The Bank has put in place a system and procedure in this regard in compliance with the RBI guidelines.
RBI had introduced the Liquidity Coverage Ratio (LCR) to ensure short term resilience of Banks to potential liquidity disruptions by ensuring that the Banks have sufficient high quality liquid assets (HQLA) to survive an acute stress scenario lasting for 30 days. The minimum LCR requirement set out in the RBI guidelines for the Bank effective from January 1, 2019 is 100%. The Bank is maintaining LCR well above the minimum prescribed levels. Bank has enough liquidity to meet sudden cash outflows.
RBI introduced the Net Stable Funding Ratio (NSFR) to promote resilience of Banks over a longer-term time horizon by requiring Banks to fund their activities with more stable sources of funding on an ongoing basis. The minimum NSFR requirement set out in the RBI guidelines effective from October 1,2021 is 100%.
The Bank is maintaining NSFR well above the minimum prescribed levels. Banks majority funding is from Retail and Small Business customers, which provide high stability with regard to stability of Funding. Banks have enough stable sources of funding to fund their activities on an ongoing basis over a longer-term time horizon.
As per the final guidelines on IRRBB issued by RBI vide Circular issued on 17.02.2023 on Governance, Measurement and Management of Interest Rate Risk in Banking Book (IRRBB), the Banks should develop their own methodologies for capital allocation, based on their Risk appetite. In determining the appropriate level of capital, Banks should consider both the amount and the quality of capital needed.
The Bank has started computing the Interest Rate Risk in Banking Book and the potential change in Economic Value of Equity and Change in the Net Interest Income is being measured and reported to RBI also. The Banks interest rate Risk in the Banking book is well within the tolerance limit and is being monitored and managed on a periodic basis.
Basel III has introduced a simple, transparent and non-Risk based leverage ratio, which is calibrated to act as a credible supplementary measure to the Risk based capital requirement. Bank has been in compliance with the regulatory requirements on Leverage ratio and reporting to RBI on a quarterly basis from the quarter ending June, 2015.
Reserve Bank of India has issued guidelines on implementation of Basel III capital regulations in India to be implemented in phased manner effective from April 1,2013 with Banks disclosing Basel III capital ratios from the quarter ending June 30, 2013. The Bank is complying with the same.
The third pillar of Basel-III framework refers to market discipline. The purpose of market discipline is to complement the minimum capital requirements detailed under Pillar 1 and the supervisory review process detailed under Pillar 2. In this context and as guided by RBI a set of disclosure (both qualitative and quantitative) are published in DF 1 to 11 (annexed) with regard to Risk management in the Bank, which will enable market participants to assess key pieces of information on the (a) scope of application (DF-1), (b) Capital Adequacy (DF-2), (c) Credit Risk: General Disclosures for all Banks (DF-3), (d) Credit Risk: Disclosures for Portfolios subject to the Standardized Approach (DF-4), (e) Credit Risk Mitigation: Disclosures for Standardized Approaches (DF-5), (f) Securitization Exposures: Disclosure for Standardized Approach (DF-6), (g) Market Risk in Trading Book (DF-7), (h) Operational Risk (DF-8), (i) Interest Rate Risk in the Banking Book (IRRBB) (DF-9), (j) General Disclosure for Exposures Related to Counter Party Credit Risk (DF-10),(k) Composition of Capital (DF (11), Summary Comparison of accounting assets vs Leverage Ratio exposure measure (DF 17) and Leverage ratio common disclosure template (DF-18). This would also provide necessary information to the market participants to evaluate the performance of the Bank in various parameters.
CREDIT MONITORING
Bank has implemented various strategies for follow-up and recovery of SMA accounts and for closer monitoring of credit to ensure that slippages are kept at the minimum possible levels.
Measures implemented during FY 2023-24 for effective monitoring of accounts:
Bank has taken the following measures to address the potential Risk of increased slippages,
> SMA and Probable Slippages Reports for the month are provided online well ahead every month and
updated reports are made available for follow-up by the Branches/ROs/CO Departments daily.
> SMS Alerts are sent to SMA borrowers at regular frequencies reminding them on the repayment of overdue.
> SMA Borrowers not responding to telephonic follow-up within 15 days are followed up through personal visits.
> SMA accounts with the outstanding of Rs.50 lakhs and above are being reviewed monthly by the GMs committee at C.O.
> SMA accounts of overseas Branches are also reviewed by the GMs Committee monthly.
> System generated Letters to SMA borrowers (mentioning overdue and requesting early regularization) has been enabled for ROs and Branches.
> Services of an Outbound Call Centre is also engaged for follow up and recovery in SMA/Probable Slippage accounts of Retail credit and MSME. Apart from the calls, Voice Blast facility is also used to send pre-recorded messages to the overdue borrowers reminding them to pay their dues at the earliest.
> Early Warning Signals (EWS): Bank has a robust EWS solution in place. The solution covers non-Retail accounts with exposure of Rs. 3.00 Crores or more (both fund and non-fund based) and Retail accounts with exposure of Rs 50.00 Lakhs and above irrespective of the lending arrangement.
Bank was able to control slippages during the FY 2023-24 by adopting the above measures and has maximized recovery and regularization of Special Mention Accounts.
LOAN REVIEW MECHANISM
> Stock Audit procedures have been strengthened for all accounts with working capital outstanding (both fund based and non-fund based) Rs.5 crores and above. Stock Audit review notes are being placed to the GMs Committee at Central Office and observations of the Committee are being advised to RO/Branches.
> Agency for Specialized Monitoring (ASM) is allocated by the Bank for accounts wherever CCD/MSME has stipulated ASM appointment in the sanction. ASM reports are being placed to the GMs Committee at Central Office and observations of the Committee are being advised to RO/Branches for due compliance.
> Credit Compliance Audit is conducted for accounts with an exposure of Rs.50.00 lakhs and above for domestic accounts and for accounts with exposure Rs.1.00 Crore and above for overseas accounts. Audit is carried out annually. The account is categorized as Low/Moderate/High according to the level of compliance. Corrective measures are taken account wise to strengthen compliance and to address gaps.
COMPLIANCE
Compliance Management is considered as one of the key elements of Corporate Governance Structure and Sound Risk Management Practice of any corporate entity.
The Bank has well defined compliance policy as per Reserve Bank of India Guidelines and has in place systems and procedures for managing Compliance functions. Necessary Circulars / Instructions on the regulatory guidelines are being issued periodically.
Chief Compliance Officer reports to MD & CEO / Board / ACB of the Bank, and effectively participates in various policies clearance and governance meetings. During the financial year, the compliance department has made significant improvement in level of compliance at various field levels. The Compliance Department has also taken new initiatives and development of the existing compliance tools.
The overall compliance level is submitted to the Board / Audit committee of the Board. Annual review of compliance functions and further steps initiated for improving compliance level of branches are also submitted to the Audit Committee of the Board.
The Bank has provided the web Portal viz Knowledge Management Tool in Banks Intranet wherein all the Regulations, Guidelines of the various regulators like RBI, SEBI Etc. can be accessed at a single point.
Compliance culture is being inculcated among the staff members through various forms of communication and interactions.
New Products launched by the Bank are subject to intensive monitoring for a period of first six months of introduction to ensure that the indicative parameters of compliance Risk are adequately monitored.
INSPECTION & AUDIT
As part of its continuous improvement process, the Banks Inspection and Audit Department plays a crucial role in ensuring the Banks compliance with regulatory requirements, Risk management, and internal control systems.
The primary objectives of the Inspection and Audit Department for the FY 2023-24 were:
1. To ensure compliance with regulatory requirements and guidelines issued by the Reserve Bank of India (RBI) and other regulatory bodies.
2. To assess the effectiveness of the Banks Risk management framework and internal control systems.
3. To identify areas of improvement and recommend corrective actions to enhance the Banks overall performance.
Highlights of Major activities during FY 2023-24:
| Sr. No. Audit | Highlights |
| 1 RBIA | As per the meticulously crafted audit plan for Risk-Based Internal Audit for the fiscal year 2023-24, the comprehensive audit of all planned and approved branches was successfully completed by the stipulated deadline of March 31, 2024. |
| 2 Offsite Monitoring Unit (OMU) | The Offsite Monitoring Unit (OMU) underwent significant enhancements to optimize its functionality. These enhancements focused on improving the effectiveness of the unit in identifying and addressing potential Risks and issues within the organization. One key improvement was the implementation of control-oriented exception reports. |
| 3 OMU-PROBE | Bank has revamped the Internal Audit System as per Risk Mitigation Plan mandated by RBI and introduced OMU-PROBE and Dynamic Risk Assessment module for forward looking Risk rating. |
| 4 Offsite Control and Surveillance (OCAS) | To improve the compliance level on audit observations, the audit package was further modified to improve control areas. |
| 5 Management Audit | Management Audit of 49 Regional Offices, 43 departments in the central office, 7 Nodal Audit Offices, and 01 Regional Rural Bank (Odisha Gramya Bank) was completed successfully. |
| 6 Concurrent Audit | 676 branches are covered under concurrent audit with coverage of 50% in deposits and 60% on total advances. |
| >7 IS Audit | Various audits as per Audit plan for FY 2023-24 were completed successfully. |
| IT Examination 2022-23 observations on IS Audit Complied | |
| Implemented the Framework for Monitoring Outsourcing Arrangements and Role of Internal Audit. | |
| 8 IFCoFR | Internal IFCoFR Control Testing at Branches, RO, CO and systems to enable Annual Certification by SCA. Sustained for 2023-24 |
VIGILANCE
With the theme of "Business First, Preventive vigilance always" continued during the Year 2023-24, the Bank continued to take various effective steps for Preventive Vigilance and speedy disposal of Vigilance Disciplinary cases within the time schedule prescribed by Central Vigilance Commission.
1. Preventive vigilance Activities:
The following Preventive Vigilance initiatives were conducted during the year 2023-24:
a) During FY 2023-24, 182 complaints were received from various sources including DFS, CVC, RBI, CBI & Others. Wherever vigilance overtone observed such complaints were handled until the logical end as per the timeframe fixed by CVC and only one complaint was pending more than 3 months which is closed now.
b) The Department has scrutinized 25 CTE type inspections and examined various procurement orders / service orders placed by the Information Technology Department, General Administration Department and Subsidiary RRB-OGB.
c) A series of thematic inspections on various matters; verification of Housing loans sanctioned during the campaign period, high advance growth branches, surprise visits by vigilance department to check the compliance level etc., were conducted during the year.
d) CVO/Officials of Vigilance Department have visited 9 Regions of the Bank during the financial year to ensure compliance to the vigilance mechanism at the ground level. During the visit, CVO has sensitized the RO staff, selective Branch heads and few branches over Webex about the importance of preventive vigilance.
e) During the Financial year 2023-24, as part of VAW 2023 training programme for officials across the branches/ROs was conducted PAN-India highlighting the systems/procedures and the importance of timely completion of disciplinary proceedings. Also, nominations of officials of the Bank were made to different vigilance training programmes conducted by CVC/Various institutes along with few RVOs who have taken charge during the year as Regional Vigilance Officers at various Regional Offices.
2. Predictive Vigilance: CO Inspection Reports, Audit reports of all the high and medium Risk branches for the year 2023-24 were scrutinized on a real time basis and cognizance of incidents of Vigilance angle were brought on record for appropriate action by Bank. The details of reports scrutinized are as follows:
> Scrutinized 3652 Concurrent Audit Reports during the year 2023-24.
> Scrutinized 1967 Central Office Inspection Reports during the year 2023-24.
> Scrutinized 1367 Statutory Audit Reports during the year 2023-24.
> During the year 2023-24, total of 26,071 clearances /status given to employees for availing loans, passport, foreign visits, first line posting etc.
> 94 No. of SAC files scrutinized
> 48 No. of Fraud files scrutinized
3. Punitive Vigilance: Due to effective steps taken for disposal of disciplinary cases by the Bank, pendency in disposal of vigilance cases and non-vigilance cases reduced for the FY 2023-24. As on 31.03.2024 only 163 vigilance cases are under process at various levels and out of those, charge sheet was issued in 138 cases and for the remaining 25 cases, issuance of charge sheet is under process by CDAC. Further, for more than 36 months only 1 case is pending due to a court case. Total Suspension cases as on 31.03.2024 is 34. Also, during the FY 2023-24 total 10 cases were referred to ABBFF out of which 5 cases were taken up for deliberation and concluded.
4. Participative Vigilance: Commissions message on Vigilance Awareness Week %t %; tie %
nfa "Say no to corruption; commit to the Nation" has been well taken by all Branches, Regional
Offices PAN India and Central Office. The Vigilance Department has organized various internal and outreach activities to create awareness among our employees, customers, stakeholders and general public about being honest and transparent. A special focus and wide publicity given on PIDPI (Public Interest Disclosure and Protection of Informers) during Campaign period. We inspired all the public in general in the process of eradicating corruption and embracing Integrity.
Also, CVO along with Vigilance Department officials participated in Seminar/Training Programme on (i) Vigilance Administration & Procurement for Vigilance Officers of PSBs & PSUs organized by CPCL on 15.09.2023 and on (ii) Capacity Building - Disciplinary Proceedings & Vigilance Administration by Indian Bank on 17.11.2023.
Gist of Activities / Events conducted within the organization:
In-house Vigilance Awareness Activates:
Mass Pledge: On 30th October 2023, Mass Pledge was taken at 11:00 AM in Central Office, Chennai, wherein Managing Director & Chief Executive Officer Shri Ajay Kumar Srivastava administered the pledge in English in presence of Executive Directors, Chief Vigilance Officer, General Managers and other executives. Pledge in Hindi was administered by Executive Director Shri Sanjay Vinayak Mudaliar. Similarly, all the employees of branches and administrative offices took pledge at the same time across India.
E-Integrity Pledge: More than 4,05,000 customers have taken Integrity Pledge at the time of opening Account with us from 16th August, 2023 to 15th November, 2023 through our Branches across India.
Online Quiz Contest:
An all-India On-line quiz competition was held on 17th October, 2023 for all the staff members of the Bank in the following categories:
Executives Cadre Quiz category: All the executives of the Bank of the cadre of AGM and above attached with Branches, Regional offices and Central office were encouraged to participate in the competition.
Supervisory Cadre Quiz Category: All the supervisory staff including probationary staff were encouraged to participate in the competition.
Award Staff Quiz category: All the award staff of the Bank were encouraged to participate in the competition
Best Short film/reel/videos: Staff of the Bank were encouraged to prepare a short video/reel/film on the PIDPI and the VAW theme "^Kldl< %t %; Rste % nfa -H^ftfd "Say no to corruption; commit to the Nation". It was informed that the content of the audio visual should not be created with copyright content and to be created in either Hindi/English language. The best five teams were awarded, and their content was used by the Bank for promotion of the theme wherever it seems suitable/fit.
Online Essay Contest for Employees: From 9th October, 2023 to 19th October, 2023 an essay competition was conducted for All employees of the Bank through Online Essay Contest portal on the theme %T %!; RsTH % nfa "Say no to corruption; commit to the Nation". A committee evaluated the essays submitted and participation certificates for all participants were issued.
In the same manner, Odisha Gramya Bank too conducted an Essay Competition for all the staff attached to the administrative office and all the branches of the Bank. A committee headed by the Chairman evaluated the participants effort and distributed the prizes to the winners.
Displaying Banners & Posters: From 30th October 2023 to 5th November 2023, all branches, Regional Offices and Central office displayed VAW Banners at the prominent places across India. In the Central Office, VAW banners were displayed at three places, i.e., Main Gate, Entrance gate of Main building, Annexe Building. One standee for each building was also displayed during VAW.
Seminar on prevention of frauds: On 4th November, PAN India a webinar was organized by inviting Shri Abhay Kumar Singh, IPS, Director General of Police, Director, Directorate of Vigilance and Anti-Corruption, Tamil Nadu as Chief Guest. Regional Heads, Regional Vigilance Officers and other staffs at Regional Offices & Branches, Pan India participated through Video Conference.
Seminars and workshops were also organized during the VAW 2023 at all Regional Offices. Eminent personalities from CBI, Police etc., were invited as Chief Guests in the meeting.
Seminars and workshops were also organized at OGB with eminent persons as Chief Guest.
Rangoli Contest on Vigilance Awareness Activities: On 31st October, 2023, 64 employees of our Bank participated in Rangoli competition on the theme "^KMl< %T %!; RsTH % nfa "Say no to corruption; commit to the Nation" held at Central Office, Chennai.
Launching of Vigilance Manual (1st Edition): On 30th October, 2023 the First Edition of Vigilance Manual of the Bank was released by Shri Ajay Kumar Srivastava, Managing Director & Chief Executive Officer in presence of Executive Director, Chief Vigilance Officer, General Managers and other Executives at Central office, Chennai.
Relaunching of IOB Vigil (Quarterly Magazine): In June, 2023, Vigilance Department has relaunched the quarterly magazine IOB Vigil to create awareness regarding the preventive vigilance activities which will be helpful for all the staff members across the work profile.
Outreach Activities:
SKY Advertisement: On 30th October, 2023 a SKY advertisement Balloon on the theme of Vigilance Awareness week 2023 was released by MD, ED & CVO on the top of Central Office building carrying VAW theme and logo of IOB in Tamil & English.
Air Advertisement: Awareness amongst public on VAW 2023 Theme and Jingles was aired from 30th October 2023 to 5th November 2023 - in Fever FM, Radio City and Radio Mirchi in English and Tamil.
RADIO Interview of CVO: On 4th November, 2023, an interview of the CVO was broadcasted on FM Radios on ways to protect the public from Cyber Crime, PIDPI, etc.
Events in Schools and Colleges: Various VAW activities across the country in 315 Schools involving 31643 Students and 83 colleges involving 8882 students participated in the Vigilance Awareness Week and took mass pledge in total. Elocution, Debate, Drawing, etc. competitions and workshops were held in these schools. Prizes were distributed for the winners.
Awareness Gram-Sabhas: Across the country 486 Gramsabhas involving 12,449 Public was conducted during Vigilance Awareness Week and took mass pledge in total.
Seminars/workshops: Across the country total 73 Seminars/workshops were conducted on VAW activities wherein around 2602 Public participated and took mass pledge.
Walkathon: Metro and Non-Metro Regional Offices of Chennai in collaboration with Central office have organized a Mega Walkathon on 05.11.2023 at Besant Nagar Beach - Chennai. The event has been flagged off by MD &
CEO in the presence of Chief Vigilance Officer, General Managers, Deputy General Managers, Assistant General Managers, Vigilance Department Officials and other staff of Central office and Metro and Non-Metro Regional Offices of Chennai have participated in the event enthusiastically.
Other visible activities through DIGITAL Platform:
During VAW 2023, mass SMS was sent to 68,84,370 IOB Customers containing Message "IOB is observing Vigilance Awareness Week from 30.10.2023 to 05.11.2023. Join us to Say no to Corruption; Commit to the Nation by taking the Integrity Pledge at your nearest IOB Branch or visit www.iob.in or https://pledge.cvc.nic.in.
From 30th October 2023 to 5th November 2023 - Emails to 11,07,825 IOB Customers were sent carrying CVO Message and with a hyperlink to take an e-pledge.
During the VAW week, 3518 ATM & CDM machines of IOB, PAN India were enabled to display and printing of VAW Message %t %!; % nfd -H^ftfd Rs^""Say no to corruption; commit to the Nation". Join and take pledge @ www.iob.in."
During the VAW week, FINACLE CBS was enabled to display VAW Message "^KNK %I %!; RsIH % nfd -H^ftfd
" "Say no to corruption; commit to the Nation". Join and take pledge @ www.iob.in."
For the month of October 2023 and November 2023 salary slips of the employees were printed with the VAW Message "^KldK %t %!; RsIH % nfd -H^ftfd " "Say no to corruption; commit to the Nation". Join and take pledge @ www.iob.in."
VAW message was prominently displayed in the Bank official page of X(Twitter), YouTube, Instagram and Facebook.
Display of celebration of VAW in our webpage (Internet site and Intranet Site) wherein a hyperlink was provided for taking an integrity pledge for the public.
Activities conducted in Odisha Gramya Bank (OGB) Sponsored by IOB:
> Mass pledge taken by 1847 employees
> E-pledge taken by 18915 customers
> Essay competition conducted and 34 employees participated.
> Activities conducted in 136 schools & 21 colleges and a total 10910 students participated and took mass pledge.
> Awareness Gramsabhas conducted in 218 villages and more than 8236 public participated and took mass pledge.
MANAGEMENT INFORMATION SYSTEM
The Bank has implemented a robust Management Information System (MIS) and Decision Support System to handle Reporting and analytical requirements of the Bank apart from ensuring flow of data to User Departments for submission of various statutory and ad-hoc reports.
Oracle Analytic Server (OAS), an analytical tool deployed by the Bank provides around 300 reports, Data Mining and analytics accessed by Top Management, Controlling Offices and Branches through our intranet IOBONLINE.
The tool has been utilized by the In-house team of MIS for development and deployment of Reports, Graphs, What-if analysis, Data Mining, Ad-hoc Reports based on user requirements. The tool is effectively used for various purposes such as Performance Monitoring, Regulatory Reporting, Analysis of historical data, Follow up of campaigns.
Some of the major activities of MIS are furnished below:
Program Development and Modifications
> CRILC Return Upgradation
> MISD - SOP/Framework
> SLBC Reports Automation - Modification
> NESL - Upgradation
> IOB Data Design Portal - Modification
> EWS New Workflow Design
> AML Reports - Migration of FINNET1 to FINNET2
> EASE - Upgradation
> RBI CIMS - Automation
> Data submission for analytics
> Tranche Reports
> LAKSHYA Portal Data submission
Business Intelligence Reports
> Daily vertical wise advances report
> ATM Cash out report
> CKYC, Re-KYC reports
> Funds Committee reports
> Daily Variance reports
> Campaign Management Reports
> Digital Performance Monitoring Reports
> GBM Reports
> SHG Reports
> CIMS Implementation
DIGITAL BANKING
Digital Payments and seamless, efficient Dynamic Online solutions are the norms for customer experience and customer satisfaction in the present-day Banking services. The Bank is committed to its customers to provide the best experience through its Digital Banking Services. The Bank has a strong network of Alternate Delivery Channels to substitute the brick-and-mortar branches. A long chain of ATMs & Cash Recyclers at branches and
offsites sufficiently supplemented by e-Passbook Kiosks form the core of the digital platform of the Bank. Other important and most sought Alternate Delivery channels include Internet Banking, Mobile Banking, NEFT, RTGS and IMPS services, Banks own BHIM IOB UPI App, PoS machines, Pre-printed QR Codes, Voice Based QR code handsets, IOB Pay and Fastag.
Summary of the various Digital Banking Products and Services offered by the Bank are as follows:
ATM, Cash Recycler and Passbook Kiosk Services of the Bank:
> 3506 Cash Management machines as on 31.03.2024, comprising 1147 ATMs and 2359 Cash Recyclers.
> Deployment of 2777 of these 3506 ATMs/CRs Onsite and remaining 729 Offsite
> Out of total 3506 machines, 2697 are Branch Managed (CAPEX model) and 812 are vendor managed (OPEX model).
> The Bank ensures continuous availability of ATM services to customers 24*7 and sufficient cash in its ATMs and Cash Recyclers.
> Banks ATM & CR portfolio average uptime for 2023-24 was 96.31% with uptime for March peaking at 97.23% as on 31.03.2024.
> Bank has provided continuous availability of sufficient cash in all its ATMs 24*7; and ensured to keep the cash-out ATMs at the lowest numbers in the industry.
> Bank has deployed 2280 self-service e-Passbook Kiosks at branches. During the ensuing FY (2024-25) Bank plans to rollout e-Passbook Kiosks in 700 more branches.
Bank on Wheels
> As part of Banks Commitment under EASE (Enhanced Access and Service Excellence), Our Bank has deployed "Bank on Wheels" (Mobile ATMs) in 13 districts of Tamil Nadu and one district of Kerala where IOB is the Lead Bank besides one district in Andhra Pradesh (Vijayawada).
> Each Bank on Wheel is equipped with one Cash Dispenser, one Passbook Kiosk and 55" LED Screen for marketing of various products of the Bank. These Screens are also utilized for delivering Financial Inclusion messages or any educational series to the public.
> A Business Correspondent will also be available in the vehicle for providing on-the-spot support and information to the needy customers.
> During ensuing FY (2024-25) the Bank plans to introduce 50 new Bank on Wheel model ATMs across major centres of the Nation.
Debit Cards:
> Debit Card is a major tool for conducting financial transactions in ATMs, PoS machines and online medium.
> To meet the vagaries of customers, the Bank offers more than ten different variants under RuPay, VISA and Mastercard brands.
> Each flavour of the card is designed to meet specific customer segments. The card variants include Classic, Gold, Platinum, Signature, Select etc. All the variants are NCMC enabled NFC cards.
> Government scheme specific cards viz., PMJDY Cards, Kisan Credit Cards etc., are also offered to the public.
> Both Insta Cards (without customer name) and Personalised cards (with customer name) are offered as per preference of the customers.
> Self-activation of the debit card by the customers, change PIN through Green PIN generation (for all types of cards including PMJDY, KCC, NRO) through different channels are enabled for ease of use.
> Various self-service facilities like enable/disable e-com, enable/disable international transactions, setting separate card limits for different types of transactions, block debit cards, are enabled for card holders through Internet Banking, Mobile Banking, IOB Website, Contact centre and Banks Branches.
> Card on File (Tokenization) is enabled.
> Cards are issued with the National Common Mobility Card (NCMC) feature of RuPay for contactless transactions.
> Facility has been provided to card holders to activate the Card through Net Banking and IOB ATM.
> Green PIN is enabled for all types of A/cs including PMJDY/KCC/NRO/NRE and INSTA card customers.
MOBILE BANKING
> IOB Mobile Banking App is one of the best user friendly and comprehensive MB Apps.
> Available in both Android and iOS devices
> Product has all the advanced features such as:
• Self-registration without visiting the branch.
• Login using Biometric authentication/ Face recognition (IOS) for enhanced security and access.
• Payee sync between Net Banking and Mobile Banking
• Debit card Apply, Replacement and Upgrade
• Debit card New PIN Set/ Reset PIN and change Old PIN
• ASBA - IPO application - View and withdraw applied IPO
• Loan repayment.
• Cooling period for payee addition introduced.
• Form 15G/H submission.
• PMJJBY/PMSBY insurance enrolment
• mPassbook facility available to view & download account statements
• Voice assistance facility
• Deposit opening including 444 days, renewal, pre-closure and closure
• Bharat Bill Payment System (BBPS) integration.
• Pay Later/Standing Instructions facility
• Mobile Banking application in 10 regional languages
• Scan & Pay Integrated with Mobile Banking
• Complaints/Fraud Reporting
• Shop at your favourite store & buy Clothing, Accessories, Furniture, Electronics & much more with added reward points.
INTERNET BANKING
> Currently the Bank provides Internet Banking through its in-house platform.
> Major features are Balance Enquiry, Transaction details, Funds Transfer using NEFT/RTGS/IMPS etc, Online Tax and Utility Payments, Bill Payments, Top Up of Prepaid Cards, and Credit Card Payments.
> Internet Banking application is available in 10 regional languages.
> Facility to avail Demand Loan against Deposit.
> Foreign Outward Remittance to Singapore enabled in Internet Banking.
> Open PPF account without stepping into Branch.
> Online registration and self-activation through Debit Card (Retail).
> Opening/Closure/Renewal of Deposits.
> Block/Unblock/Upgrade/ Set Green PIN/Change Limits of your Debit Card
> Apply/View for Govt Schemes viz NPS, SGB, PPF etc.
> Apply for IPO (Initial Public Offering) both for retail and corporate.
> Download e-Statement, Deposit/Loan Interest Certificates etc.
> Enable / Disable AEPS
> Funds Transfer to VAN ID (My Account My Name ID) through Net Banking
> During the ensuing FY 2024-25 the Bank will be migrating to a new Internet Banking platform enabled by M/s Edgeverve through Digital Engagement Hub which will enhance the Online Banking experience of customers.
BHIM IOB UPI
> The Bank Introduced its BHIM IOB UPI App in the year 2016.
> The Bank launched BHIM IOB UPI (with UPI 1.0 in 2017 and UPI 2.0 in 2021).
> In the FY 2023-24 the Bank introduced UPI LITE App as integral part of BHIM IOB UPI App; using the UPI Lite App, customers can make faster payment up to Rs.500 without UPI PIN.
> Revamped BHIM IOB UPI application was launched in April 2024 with Simplified User Interface and enhanced digital experience.
> Make payment using UPI ID, Account number and IFSC and by scanning any QR code.
> Pay to any mobile Number with UPI Number functionality.
> Use Request Money feature for collecting payments.
> Create UPI mandate for recurring payments.
> Set/Reset UPI PIN using Debit Card or Aadhaar card.
> Self-Transfer facility in case of multiple accounts.
> Add Payee for faster payment.
> Launched multi-lingual Soundbox facility and IOB UPI Vyapar application in 2023 for simplifying merchants day-to-day activity.
> We have introduced UPI Lite for low value transactions & central mapper.
RTGS/NEFT
> Available for Customer and Inter Bank transactions.
> Customers can avail NEFT facility through Mobile Banking and NEFT/RTGS through Internet Banking.
> NEFT & RTGS channels are functioning 24 X 7.
> NEFT Charges are waived for NEFT transactions initiated through online mode (via internet Banking and mobile Banking) for savings account customers.
IOB PAY
> It is an integrated online payment system which offers fee payments, merchant payments, donations for charitable institutions etc. It is an easy and effective way of collecting payments for the merchant customers of our Bank.
> Services are provided through in house developed products with integrated Aggregators/Directly through PG Aggregators.
> Bank has recently empaneled 10 (ten) number of PG Aggregators through EOI process for providing payment gateway to merchant customers of our Bank. This will help the Bank to provide industry standard payment gateway solutions to corporate merchants with website/without website and by providing customized mobile applications/ERPs etc.
> 935+ merchants have been registered in IOB Pay.
> The Bank also provides various other Digital Banking Payment Solutions viz., Point of Sales Machines (PoS), QR Code enabled Payments through Ready to use QR codes to new customers, Voice Message Based QR Code handsets etc., IOB Fastag for prepaid stickers for highway Toll charges payment etc.
TECHNOLOGY & DIGITAL INITIATIVES DURING FY 2023-24
In its endeavor to serve customers across diverse generations and achieve customer delight by delivering innovative solutions, the Bank has been investing remarkably on digital initiatives as part of its digital transformation journey coined as "e-Sankalp", aligning with the technology trends across the industry.
Towards ensuring a robust and resilient technology infrastructure, the Bank has set up a state of the art onpremises container platform and is leveraging it with on-premises private cloud setup, which facilitates hybrid cloud foundation for building and scaling containerized applications. The Bank has established an Integrated Payment Hub to handle diverse payment solutions, modes of payment and scaling up to the growing transaction volume and equally supporting the business growth of the Bank.
The Bank has been amongst the pioneering Public Sector Banks to be authorized by UIDAI to leverage "Aadhaar Face authentication" for customer onboarding which will facilitate our Bank customers to authenticate in a contact-less way in the initiatives like account opening, Re-KYC, registering for Govt. schemes etc. The Bank continues to roll-out various unique customer-centric solutions like "My Account My Name", "Online Safe Deposit Locker", "Online Account Number Portability" which transforms the experience of customers.
For instance, the initiative "My Account My Name" empowers the customers to give a customized 7 charactered name of their own choice to their IOB Account and integrate it with all payment systems and digital financial solutions; without the need to remember the long account number given by the Bank. Similarly, another unique initiative of the Bank, "Online Safe Deposit Locker Allotment", helps customers to find the availability of safe
deposit lockers at the place and branch of their choice; and to apply for automated locker allotment. Further, the "Online Account Number Portability" facility allows the customers to transfer their Savings Bank accounts to their nearest branch of proximity & convenience without the need to visit any branch physically at either end, when they relocate from one place to another.
As part of enhancing the service delivery channels, the Bank has introduced Aadhaar centric "Tab Banking" tool to provide any-time any-where service for account opening and many related services. Through leveraging the tab Banking channel, the staff members are able to deliver the Banking services at doorsteps of all types of individual customers and ensure that the Bank remains a market leader in service delivery under Financial Inclusion.
The Bank has rolled out a "Customer Relationship Management" tool which enhances the operational efficiency through data driven insights. It helps employees to get a comprehensive view of customers & valuable relationships enabling them to recommend the best product, cross sell it and offer best services. While many new digitalized Loan products are introduced through our Loan Origination System for branch journey, customer self-service journeys, the Bank has provided Mobile Apps to all the field staff members to ensure prompt follow up and recovery of loan dues, which enhances the collection and recovery of loans. Bank has also rolled out Office note automation for internal committee & management approvals to minimize / eliminate paperwork.
To enable the timely delivery of all these products and features, and ensure seamless customer experience, the Bank has also upscaled its technology infrastructure with state-of-the-art systems & networks along with secure software and solutions. The Bank commits itself towards continuing these technological cum digital initiatives in the ensuing financial year as well, with more intensity, by partnering with Fintech companies leveraging the benefits of Data Analytics, AI/ML and other upcoming technological trends and innovations.
INFORMATION SECURITY
> Board approved Information Security Policy, Cyber Security Policy, Digital Payment Security Control Policy, Technology Risk Management Policy, Cyber Crisis Management Plan, Business Continuity Plan and Disaster Recovery plan are in place.
> Banks Information Security Department is certified with ISO 27001:2022 which is a recognition for following the information security best practices.
> Bank has achieved PCI-DSS certification. PCI DSS stands for Payment Card Industry Data Security Standard. It is a set of security standards designed to protect the payment card data of cardholders and ensure the secure handling of cardholder information by organizations that process, store, or transmit payment card data.
> Data Centers are in place which facilitates Zero data loss, Multiple MPLS-VPN high bandwidth connections and Dual connectivity from different alternate service providers/ media for branches have been established.
> Firewall and Intrusion prevention systems are in place.
> Bank has implemented a Data Classification tool to classify the sensitive information and ensure the security of confidentiality and privacy of sensitive information.
> Deception tools have been implemented which detect threats early with low rates of false positives.
> Bank has a Static Application Security Testing (SAST) and Dynamic Application Security Testing (DAST) tool to identify potential weaknesses and vulnerabilities in the applications.
> A Security Operating Centre (SOC) operates 24*7*365 days to monitor and analyze the information security incidents to take preventive and corrective steps.
> Regular DR drills are being conducted every quarter to ensure availability.
> Bank has disseminated security awareness through educational series in Banks website, Internal circulars, posters, SMSs, messages through ATM Kiosk, Internet Banking, Mobile Banking and Social Media Handles (Facebook, twitter etc.).
> Bank has also uploaded cyber security awareness videos on the Banks website, social media accounts such as Facebook, twitter, YouTube etc. to create awareness.
> Bank has conducted Cyber Security awareness training for all the staff members and third-party service providers.
GOVERNMENT ACCOUNTS Direct Tax Collections:
The Bank is authorized to collect Income Tax and other Direct taxes. Direct tax collection has been enabled in internet Banking and over the counter (OTC) in all branches. During the year, the Bank has handled transactions amounting to Rs.12774.81 crores and earned a commission of Rs.1.22 crores.
Indirect Tax Collections:
The Bank is authorized to receive e-payment of Excise and Service Tax, E-payment of Customs Duty and e-refunds of Duty Drawback. After the introduction of GST, all our branches have been enabled for collection of GST. During the year, the Bank handled transactions amounting to Rs.18150.56 crores and earned a commission of Rs.1.63 crores.
Payment of Pension:
Bank is serving pensioners of Central Civil, Defence, Railways, Telecom, State Civil, TNEB, Chennai Port Trust, Chennai Dock Labour Board, Local Fund Audit of Tamil Nadu, and Malaysian Government Pension.
Our Centralised Pension Processing Centre (CPPC) disburses the pension for various departments of Central Govt., such as Civil, Defence, Railway, Telecom and Postal wherein the total number of pension accounts is 33026 as on 31.03.2024. Bank has disbursed about Rs.1465.46 crores of such pensions during the year and received reimbursement within 3 days from the date of disbursement. In this regard, the Bank has earned a commission of Rs.4.16 crores during the year.
Other treasuries / Services handled:
Bank also handles Treasury Business of the Government of Tamil Nadu and collection of various State Revenues. Bank has collected a state revenue of Rs.8716.35 Cr during the year 2023-24. Bank handles the Receipts and payments of Planning Commission and Department of Telecommunications totalling to Rs.1024.70 Crore. Post Office Collection (Drawing and Deposit) Account is maintained at 63 branches in Tamil Nadu handling receipts and payments of Rs.601.61 crore.
Small Savings Schemes:
Bank has been actively participating in the Government of Indias Savings Schemes like Senior Citizens Savings Scheme 2004, Public Provident Fund, Sukanya Samriddhi Yojana and Mahila Samman Savings Certificate 2023 and have contributed subscriptions of about Rs.2842.17 crores during the year.
New Govt Savings Scheme - Mahila Samman Savings Certificate, 2023:
The Ministry of Finance has advised the Banks to launch the new savings scheme - Mahila Samman Savings Certificate, 2023. The scheme has been implemented in our Bank and all branches are authorized to handle the scheme. Our branches have opened 10073 accounts during the year.
Sovereign Gold Bond Scheme (SGB):
During the year, the Bank has collected Rs.255.14 crores of subscription amount under SGB and earned an income of Rs.2.56 crore.
National Pension System:
All our Bank Branches have been enabled for accepting subscriptions of NPS. During the year, our branches have opened 1859 NPS accounts.
HUMAN RESOURCES DEVELOPMENT
1. Recruitment & Staff strength
The Banks staff strength stood at 21475 Comprising 12353 Officers, 7423 Clerks and 1699 Sub-staff as of 31st March 2024.
• During the year 2023 - 2024, 48 Probationary Officers in JMG Scale I and 173 Clerks have joined the services of our Bank through IBPS Common Recruitment Process (CRP). Also, 15 Specialist officers (IT) in MMG Scale II, 1 Specialist Officer (Fire) in JMG Scale I have joined the services of our Bank who are recruited by our Bank.
Of the total staff strength, 4229 members belong to SC category, 1580 to ST Category, and 7099 to OBC Category. Staff Strength includes 7786 Women employees, 848 Ex-servicemen and 490 physically challenged members.
2. Motivation Employee Day:
Employees are the first and foremost assets of our Bank and Bank always believes in continuous motivation to gain confidence of employees.
Our employees have always displayed impeccable commitment and dedication to our esteemed organization, at all times, and conducting "EMPLOYEE DAY" is one way of actively involving all our employees, knowing and resolving their issues and grievances, making them feel appreciated for their professional as well as personal achievements, and thereby, re-instilling a sense of belongingness and ensuring that they propel towards higher levels of performance. Every 3rd Saturday of the month is celebrated as Employee Day across the country.
ASK US:
Our Bank has always been proactive in providing its employees with ample learning opportunities and the "ASK US - Online Help Desk" is one such initiative introduced by our Bank.
It is a Real Time Online Platform provided for our staff members for clarifying their Banking related doubts, become more confident in discharging their day to day duties and thereby, render efficient customer service.
Our Banks endeavour and approach towards training and developing our employees has always been to improve on the current processes, build capacity in the Bank to offer better Banking service by addressing the knowledge gap, by providing staff members with ample learning opportunities.
All Regional Offices and CO Departments will identify Resource Persons from their respective workplace. These Resource persons will in turn help the staff members in clarifying their doubts on a real time basis.
All Ideas Matter (AIM):
Employees form the most important component for the progress of our Bank. Hence suggestions from them help the Bank in framing better policies and procedures. Keeping this in mind our Bank has introduced a Staff Suggestion Scheme named "ALL IDEAS MATTER" - Unleash your ideas wherein all staff members irrespective of the cadre are encouraged to offer their valuable suggestions and ideas.
On a quarterly basis the suggestions received from the staff members are placed before a select Committee of GMs for scrutinization and the best suggestions are selected on consensus. Those staff members whose suggestions are awarded as best suggestions will be provided with an appreciation letter and the suggestion is shared with the concerned Department for feasibility study.
Reward and Recognition Policy:
The major aim of reward and recognition policy is to attract and retain the best talent. To attract and retain the best talent, it becomes important to recognize the efforts put in by the employees in terms of performance, attitude, and achievements.
The objective of reward and recognition policy is to promote motivation in the workplace and to build up a culture that is conducive for achieving organizational objectives and to make employees feel valued and appreciated for their good work done, either individually or through teams.
In this connection our staff members with exemplary performance are being rewarded with appreciation letters under various categories.
3. Capacity Building
In order to plan the succession and equip the identified officers for identified critical positions, the Bank has drawn a Policy on "Capacity Building" in tune with RBI guidelines to enhance the knowledge of the staff members.
Staff members have been advised to obtain the certifications in those areas in order to enhance their capability. The members who are currently working under any of the identified areas have to obtain the requisite certification within two years.
As a part of motivational measure, the Bank is reimbursing the course fees for all the identified certifications under capacity building and also giving due weightage for the same in the Promotion process.
4. Ethics Policy
Ethics policy is in place covering all the employees of the Bank, to create a culture of cooperation among the employees in respect of public conduct, communications with the Bank, interactions with external entities including the media and dealing with colleagues. The policy defines the standards of the conduct that is expected of all employees in order that the right decisions are taken in performing roles and responsibilities across various functions in the Bank.
For implementation of the said policy, a Standard Operating Procedure (SOP) has been adopted wherein online affirmation from all the employees confirming adherence to the code of conduct as detailed in the Ethics policy is obtained on an annual basis.
5. Lakshya - HR Transformation project
Our Bank is embarking towards Human Resources Transformation by engaging an external consultant. The Project name is "Lakshya" - Moving forward towards Excellence. The main objective of this project is to have a comprehensive IT / Digital Performance Management System solution which shall bring in major HR transformation, by enabling and optimizing the Bank for the future in terms of achieving business goals, talent management and complying with benchmark needs of EASE and other regulatory requirements. Most importantly, it will bring in requisite performance culture in the Bank, thereby allowing sustainable growth through collective performance of all employees.
The major upgradations will be on Performance Management System (PMS), where more than 80% of the roles will be having Measurable KRAs and 70% of the marks will be system driven. Also, it will help to allocate realistic targets in line with the market growth. This shall lead to more transparency, better efficiency, optimization of resources and enhanced productivity.
The above project commenced in the month of January 2024 and the complete transformation will be completed before the end of this calendar year.
6. Job Family
A Job Family framework for Officers is in place which comprises 10 families. Under HR transformation Bank has proposed to increase the Job families from 10 to 14.
The same was arrived at after grouping similar nature of tasks/ business vertical and related depts./ cells/ areas etc. under one family.
All Officers having exposure/ working in the related depts./ business verticals and having requisite qualifications in the areas falling under the above Job Families have been grouped/ classified under the given Job Family.
7. Training
Keeping in view of the corporate goal and making the Bank a customer centric one, training has been imparted on contemporary issues of Banking apart from basic areas of Banking through the internal and external mode.
Apart from the above, regular training on Banking topics have been imparted to officers and clerks in the field of Credit Appraisal/ Credit Monitoring, Small & Medium Enterprises Financing, Vigilance. Also Programmes for First Line and Second Line Managers were conducted for all staff members through various modes (Online and Offline)
Pre-Promotion Training for SC/ST/OBC/PH members who are eligible for promotion from Sub Staff to Clerical cadre, Clerk to JMGS I, JMGS I to MMGS II and MMGS II to MMGS III was conducted through online mode.
The Pre-Retirement counseling programme was conducted for Officers and Clerks who retired during the year.
Internal Training
Our Banks internal training system comprises One Staff College and Twelve Staff Training Centres (STCs). The statistics of Internal Trainings imparted for the FY 2023 - 24 is furnished hereunder:
| Particulars | Officers | Clerical | Sub staff | Total | SC (Out of Total) | ST (Out of Total) |
| Training imparted to Individual Staff members (irrespective of no. of trainings attended) | 6871 | 4429 | 1010 | 12310 | 2630 | 957 |
| Training imparted during FY 2023 - 24 (based on total no. of trainings attended by members) | 8854 | 5188 | 1083 | 15125 | 3286 | 1257 |
External Training
We had also deputed 1321 Executives/Officers/Clerical for training programmes conducted by reputed external institutes like IDRBT - Hyderabad, NIBM - Pune, ASCI-Hyderabad, Oracle University, CAB - Pune, RBI, Wrights Training and Consulting LLP, State Bank Institute of Leadership (SBIL), NAMCABS, IIBM-Guwahati, Industrial Management Academy, CAFRAL - Mumbai, FEDAI - Mumbai, IBA, IIBF, NIBSCOM, Bird-Lucknow, VMware, Madras Chamber of Commerce and Industry.
Apart from the general and subject concerned training programmes, Bank has also conducted special training programs to the top performers of the CASA campaign to encourage the top performers.
Also, 94 Executives have been imparted special training on Communication skills by Centre for Organization Development (COD), 177 Executives/Officers have been trained on various Leadership Development Training Programs by reputed training institutes like ASCI, NIBM etc.,
E-Paatashala - Online e-Learning portal
E-Paatashala was made available for all the staff members in our Banks online module consisting of 71 modules on various areas like Credit, NPA, Treasury, Foreign Exchange etc., during the FY 2023 - 24. These modules were targeted at enhancing and updating the knowledge of the staff members thereby scaling up our online learning initiative (E-Paatashala). The said portal was updated and maintained by our Staff College Faculty on a regular basis. A total of 7425 Officers completed all 06 Mandatory modules (out of 71 available modules) under E-Paatashala.
Standard Employee Grievance Redressal System (SEGRS)
To have a formalized grievance redressal mechanism for our staff members, a Standard Employee Grievance Redressal System (SEGRS) online portal is made available to lodge the grievances of our staff members. The Grievances/Complaint Main areas are grouped in various categories related to Facilities, Behaviour, Allowances etc.,
These grievances will be redressed at two levels - Regional Office and Central Office. The complaints will be escalated to the next level on a time bound basis and redressed accordingly.
INDUSTRIAL RELATIONS
The Industrial relations environment in the Bank remained cordial and conducive throughout the year for achieving organizations objectives.
To monitor and maintain a good Industrial Relations climate in all offices/Branches of the Bank, circulars/ guidelines are issued from time to time regarding enforcement of discipline, policies to be followed, etc.
Action is taken against staff members against whom complaints/matters of IR nature are reported to enforce discipline and harmonious industrial relations in the Bank. Disciplinary action is initiated against staff members who remain on unauthorized absence
Further, all the guidelines issued by the Ministry of Finance and Indian Banks Association with regard to staff matters are implemented expeditiously by issuing circulars for the benefit of our employees.
HRMD-IR Section, Central Office holds discussions with the Officer Association / Workmen Union for redressal of grievances of staff members regarding staff benefits / IR issues etc.
During the financial year, upon signing of the 12th Bipartite Settlement and 9th Joint Note, payment of arrears / revision in salary were made to Award Staff and to Officers.
The quantum of Staff Vehicle Loan for purchase of two wheelers / four wheelers by staff members was increased and interest rates on Staff Vehicle Loan was also reduced.
Similarly, the quantum of Staff Housing Loan was increased considerably during the financial year and interest rate was reduced.
Relief Loan was sanctioned to staff members who were affected by the Cyclonic Storm "MICHAUNG" and the floods caused by it in the State of Tamil Nadu.
The reimbursement of expenses incurred by officers towards transport of personal goods on transfer from one place to another and the reimbursement of Travelling Expenses to Officers who use their own vehicle for office duty was increased as per the guidelines prescribed by IBA.
We obtain statements from all staff members regarding their Movable, Immovable and valuable properties as at the end of March every year. For the year ended 31.03.2023, most of the staff members have submitted their returns which were also scrutinized.
To prevent Sexual Harassment of Women at Workplace, Internal complaints committees were constituted at all administrative offices (Central / Regional offices) as per the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013.
The details of the Sexual Harassment Complaints received and disposed during the year 2023 - 2024 is as follows:
| Complaints pending as at the beginning of the year (01.04.2023) | Complaints received during the year 2023-24 | Complaints disposed off during the year | Complaints pending as at the end of the year (31.03.2024) |
| 0 | 6 | 1 | 5 |
Industrial Disputes / Court Cases filed by staff members before various Courts including those before Assistant Labour Commissioner are reviewed by the Bank at Apex level as per Ministry of Finance guidelines and efforts are taken to settle/get the Court cases disposed of expeditiously.
CONDUCT AND DISCIPLINARY ACTION CELL
Disciplinary Proceedings
During the Financial Year 2023-24, due to effective steps taken for disposal of disciplinary cases, we have disposed of 357 cases. During the year under review, the Bank issued 353 new charge sheets.
The disciplinary proceedings are in various stages of progress in respect of 270 cases as on 31.03.2024, out of which 163 are Vigilance cases and 107 are non-Vigilance cases. Efforts are made to complete the disciplinary proceedings within the stipulated time frame. The number of Disciplinary cases has been brought down to 270 cases amidst an inflow of 417 new cases during the financial year 2023-24. Utmost priority is being given to complete the disciplinary proceedings where the members are under suspension.
Enquiry proceedings are being conducted through Digital modes like Webex, video conference etc. to speed up the Disciplinary proceedings.
Disciplinary authorities, IA& PO have been sensitized to complete the disciplinary proceedings within the stipulated time.
REPRESENTATION OF SC/ST/OBC EMPLOYEES IN INDIAN OVERSEAS BANK:
| Category of posts | Total No. of employees As on 31.03.2024 | No of SCs | % Of SCs | No of STs | % OF STs | No of OBCs | % Of OBCs | No of Gen | % Of Gen |
| Officers | 12353 | 2114 | 17.11 | 1155 | 9.35 | 3936 | 31.86 | 5148 | 41.67 |
| Clerk | 7423 | 1459 | 19.66 | 369 | 4.97 | 2612 | 35.19 | 2983 | 40.19 |
| Sub-Staff | 1318 | 486 | 36.87 | 46 | 3.49 | 419 | 31.79 | 367 | 27.85 |
| Sweeper | 381 | 170 | 44.62 | 10 | 2.62 | 132 | 34.65 | 69 | 18.11 |
| Total | 21475 | 4229 | 19.69 | 1580 | 7.36 | 7099 | 33.06 | 8567 | 39.89 |
Rosters:
As per Ministry guidelines, promotions and recruitment rosters are maintained at Head Office to ensure adequate representation of SC/ST/OBC employees. Inspection of Rosters is carried out on a regular basis. Roster Register
for the Calendar year 2019, 2020, 2021 & 2022 have been verified by the Ministry of Finance, Department of Financial Services, New Delhi.
Trainings:
Pre-Promotion training is conducted for SC/ST/OBC/PwBD employees before the commencement of the promotion examinations.
CLOs & Office Bearers of SC/ST & OBC welfare Associations were imparted training on Reservation norms, Rosters and other Govt. guidelines.
Welfare of SC/ST/PwBD/ Ex-Servicemen Employees:
The Reservation Policy for SC/ST/PwBD/Ex- Serviceman which is applicable for Banks under Government of India is also applicable to Indian Overseas Bank. As stipulated by the Government of India Reservation Cell is functioning under the direct control of Chief Liaison officer which ensures the implementation of the rules of Reservation. The Cell takes care of the grievances of SC/ST/OBC/Ex-Servicemen/Differently abled Persons.
Quarterly meetings with the majority Welfare Association are held at regular intervals in order to resolve issues related to grievances/service matters/welfare of our SC/ST Employees.
Welfare of OBC Employees:
The Reservation Policy for OBCs which are applicable for Banks under Government of India are also applicable to Indian Overseas Bank.
Bank has a Reservation Cell at the Central Office, which is under the direct supervision of the Chief Liaison Officer, who is in the rank of General Manager. The Chief Liaison Officer through the Reservation Cell ensures that the Government guidelines are implemented in the Bank.
Half yearly meetings with the majority Welfare Association are held at regular intervals in order to resolve issues related to grievances/service matters/welfare of our OBC Employees.
Loan Facilities for SCs/STs Beneficiaries:
Our Bank has Schemes like CEGSSC and Stand-up India for welfare and upliftment of the Scheduled Castes & Scheduled Tribes and all other credit facilities of our Bank cater to the needs of all classes of society including Scheduled Castes & Scheduled Tribes.
CEGSSC (Credit Enhancement Guarantee Scheme for Scheduled Castes): provides Guarantee cover to Scheduled Caste borrowers for the loans up to Rupees Five Crores.
Stand up India: Provides Guarantee cover to Scheduled Caste/Scheduled Tribe & Women borrowers for the loans from Rs. 10 lakhs to Rs. 1 Crore.
SECURITY DEPARTMENT
Safety, Security and precautionary measures, as and where required, mandated and suggested were reviewed, studied and implemented in all Branches, ATMs and Administrative Offices keeping in view the local law and order, crime rate and modus operandi of the crimes against Banks in mind. The Bank continued to stress on preventive measures for security and fire safety arrangements and inculcation of fire prevention and security consciousness among staff to ensure safety to life and property. Portable fire extinguishers for fighting A, B and C classes of fire have been provided at all Branches and Administrative Offices. Self-operating Modular Fire Extinguishers have been provided in UPS rooms across all branches. Bank has sensitized staff members regarding security awareness and ensured installation of security gadgets viz., CCTV and Burglar Alarm system
functioning 24x7x365 days incorporating Passive Infra-Red (PIR) sensors and vibration sensors in all branches. Integrated Alarm system installed in vulnerable branches and outsourced Watchmen/ Armed Guards deployed at vulnerable ATMs and branches, on a case-to-case basis. RSOs (Regional Security Officers) deployed in various Regions have visited Branches, checked functioning of security gadgets installed, educated staff about handling and importance of these gadgets and need for routine checking of same, assessed Risk perceptions of Branches and ATMs and have taken adequate corrective measures to provide a safe working environment in Branches. Most of the Currency Chests have been sanctioned outsourced fortified cash vans with two armed guards for safe transfer of cash to needy Branches and lifting of the same from wherever it is in excess and the same is reviewed by the Security Department at Central Office.
OFFICIAL LANGUAGE
The Bank has taken all efforts to implement the Official Language Policy of Government of India during the FY 2023-24. The Bank is committed to achieve all the goals of the Annual Program formulated by the Department of Official Language, Ministry of Home Affairs, Government of India. 853 Staff members possessing working knowledge of Hindi were trained in General Hindi Workshops held during the year. As per the directives of Government of India, Bank has enabled Hindi Unicode font in all the computers in Administrative Offices and all the Branches. Four editions of our in-house Hindi Magazine "VANI" in print as well as in digital form, have been published. The Bank has conducted All India Official Language Conference for Official Language Officers on 14th and 15th July 2023 at Staff College, Chennai. The said program was chaired by our MD & CEO and Ms. Anshuli Arya, Secretary, Ministry of Home Affairs, Govt. of India has also attended as a chief guest. Regional Offices and Branches, who have done excellent work in the field of Official Language implementation were rewarded under the Rajbhasha Shield Scheme. Also, the Regional Offices whose publication of E-Magazine was excellent were rewarded in the said conference.
Our Bank has received the prestigious Rajbhasha Kirti" First Prize from the Ministry of Home Affairs, Government of India for Financial Year 2022-23, as a certification of the efforts made by our Bank towards the implementation of Official Language and Magazine, which was received by Sri Ajay Kumar Srivastava, Managing Director and Chief Executive Officer of the Bank. Our MD & CEO got the opportunity to address 10,000 participants on the subject of "H<l*l-H - #^" at 3rd All India Official Language Conference on 15th
September 2023 at Pune (Maharashtra), scheduled by Ministry of Home Affairs. Our Regional Office Goa has secured 2nd Prize from Regional Implementation Office, Govt. of India for Official Language Implementation for the FY 2022-23. Our 33 Regional Offices along with Branches have received awards from respective TOLICs. Our 25 Regional Offices were inspected in connection with Official Language implementation by the Official Language Department, Central Office.
Third Sub Committee of Parliamentary Committee on Official Language has conducted inspection of Regional Office Chandigarh, Regional Office Raipur, Regional Office NCR Delhi, Regional Office Pune, Regional Office Jaipur, Rajkot Branch, Regional Office Ahmedabad, Regional Office Mumbai and Regional Office Goa on 18th April 2023, 24th May 2023, 14th June 2023, 13th September 2023, 04th October 2023, 08th January 2024, 10th January 2024, 12th February 2024, and 15th February 2024, respectively. The said committee expressed satisfaction over the implementation of Official Language in these centres.
Bank has conducted Hindi competitions in all Regional Offices and Central Office on the occasion of Hindi Day Celebrations. An All-India Hindi Essay Writing competition was held on 18th September 2023 for staff members. Bank has also conducted an inter-Bank All-India Hindi Essay Writing competition in December 2023 for the staff members of all Public Sector Banks and FIs. Award winning articles of the said competition have been compiled and published in a book form as "ftwy ^m-2". We have also published ¦W?lR<*l, which describes
the command of Finacle menu and their uses. On 10th January 2024, World Hindi Day was observed in Central Office and Regional Offices. On this occasion various Hindi competitions, seminars and workshops were held in Regional Offices. Various Hindi competitions were conducted by Regional Offices on Banks 88th Foundation Day celebrations on 10th February 2024. Central Office has conducted a seminar on "^^T Ul?ilRl?l for executives on 21st February 2024 on occasion of International Mother Language Day.
Our Bank has introduced a cash incentive scheme for staff members, who are doing excellent implementation of Official Language in January 2021. Under this scheme, staff members who have excelled in the Official Language are being given an incentive of Rs. 1,000 and there is a provision to confer certificate to 12 staff members from central office and 3 staff members from each Regional Office & 6 staff members from Branches coming under their jurisdiction of respective ROs during every half year. During FY 2023-24, a total of 620 staff members were awarded with cash incentives and certificates under this scheme.
STATUS OF IMPLEMENTATION OF IND AS IN OUR BANK
As per RBI guidelines, the Bank is in the process of implementing Ind AS (Indian Accounting Standards). RBI vide circular DBR.BP.BC.No.29/21.07.001/2018-19 dated 22nd March 2019 has deferred implementation of Ind AS till further notice. However, RBI requires all Banks to submit Proforma Ind AS Financial Statements every half year. A Project Steering Committee headed by the Executive Director has been formed for monitoring Implementation of Ind AS in the Bank as per RBI directive. Bank is submitting Proforma Ind AS Financial Statements to RBI on half yearly basis regularly after approval of Project Steering Committee.
PSBS - REFORM AGENDA - EASE - ENHANCED ACCESS & SERVICE EXCELLENCE
EASE Reforms Agenda was launched in 2018 by IBA under the guidance of DFS. EASE Reforms Agenda focused on bridging operational and capability gaps between public and private sector Banks. The EASE programme sets a common reforms agenda for public-sector Banks every year. EASE aims to foster new-age reforms in Public sector Banks (PSBs) to improve profitability, asset quality, customer service and digital capabilities. The Enhanced Access and Service Excellence (EASE) program stressed on data analytics, automation, digitization, technology, asset quality improvement, outcome-centric HR and overall governance. EASE Reforms Agenda has significant contributions in increasing performance, transparency and accountability across all the PSBs.
EASE 6.0 introduced for financial year 2024 focuses on the 4 themes:
1) Delivering excellence in customer service with digital enablement.
2) Digital and Analytics Driven Business Improvement.
3) Tech and data enabled capability building.
4) Developing People and enhancing HR operations.
Bank has actively participated in EASE 6.0 programme and has taken necessary initiatives to showcase improved performance under EASE Reform Index.
Awards & Accolades:
> Bank has been recognized as the 2nd Best Top Improver and 2nd Best in Earliest Clarification Closure under EASE 5.0 for the FY 2023.
> Banks Ranking under EASE Reform Agenda improved to 9th Position.
PLANNING & ECONOMIC DESK
The Planning function continues to derive useful results towards monitoring region wise monthly Profit & Loss movement, Corporate level Budgeting, reporting provisional Daily MIS to Top Management & various study analysis. The economic desk supports Top Management with day-to-day developments in the economy, apart from analysing the Government/ RBI policies at regular intervals.
NEW DEVELOPMENTS:
Keeping in view the demand and requirements of branches and in line with the offerings of other Banks in the market and to make our product more competitive, we have gathered inputs and made suitable modifications and introduced and revamped liability schemes in order to make them move in the market as a competitive product.
1. Revamped SB schemes
a) To meet the needs and expectations of the existing as well as new customers and to be in line with the changing industry trends, we have revamped our existing saving account schemes.
b) Objective of revamping the savings account scheme was to reduce/merge a large number of schemes with similar features and by adding more attractive dynamic features in those schemes in line with the current industry trend.
2. IOB RERA Current Account
As per Real Estate Regulatory Authority (RERA) Act, every promoter needs to open a separate Bank account called RERA designated/ Project Account for getting himself registered under RERA. RERA Account is an exclusive current account scheme for Realtors to comply with provisions and guidelines of RERA Act 2016.
To cater the needs of the promoters/realtors, we have introduced IOB RERA current account scheme.
3. IOB Freedom Savings and Current Account
a) In order to meet the needs and expectations of the dynamic Banking industry and in the context of offering innovative products, a subscription-based model of saving account and current account has been introduced.
b) The product provides customers with unlimited access to ATMs across the country with no minimum balance requirement, free from concerns about additional charges and a bundle of attractive features. Personal accidental insurance coverage of Rs. 10.00 lakhs is available in both saving and current account.
c) The annual subscription fee is Rs 1600/- (Rs One Thousand Six Hundred only) (inclusive of GST) for saving account scheme and Rs. 3000/- (Rs Three Thousand only) (inclusive of GST) for current account scheme.
4. IOB Green Deposit Scheme
Climate change has been recognised as one of the most critical challenges faced by the global society and economy in the 21st century. The financial sector plays a pivotal role in mobilizing resources and their allocation thereof in green activities/projects. Our Bank is committed towards creating a sustainable world by encouraging the low emission & eco-friendly activities and financing such projects. As part of the regulatory framework, our Bank has introduced the IOB Green Deposit Scheme and all deposits accepted under the Scheme shall be utilized for financing green activities and projects and developing the green finance ecosystem in the country.
5. Introduction of TAB Based Banking
a) As part of digital transformation, our Bank has rolled out a customer onboarding solution for opening saving accounts. To further ease the process of account opening, Aadhar Biometric based instant account opening through Tab gadgets with integrated web camera and fingerprint scanners has been introduced.
b) The application is integrated with UIDAI and NSDL facilitating the customer to be identified through Aadhar based biometric authentication and PAN validation. The process is integrated with Core Banking Solution (Finacle) for automated account opening.
PUBLIC RELATIONS
Press Release and Electronic Media Interaction
The Department in coordination with M/s. Concept Public Relations India Limited up to February 2024 and from
01st March 2024 with M/s.Veritas Reputation P. Ltd. disseminated 48 Standalone press releases and conducted 7
electronic media interactions.
Advertisement, Publicity, and other activities
The Bank has utilized various platforms for advertisement and publicity, including Print, Online Advertisement,
FM Radio, Chennai Metro Train, Hoarding and Social Media. During the fiscal year, the Bank has spent
Rs.83.19 Lakhs on Advertisement (Regulatory and Non Regulatory) and Rs.1.22 Crores on publicity.
As directed by DFS, the following Activities were organized centrally by the Bank:
> April to August 2023 - Azadi Ka Amrit Mahotsav - Celebration on 75 years of Indias Independence. The Department co-ordinated with Regional Offices to conduct Customer Meet and Business Meet in Telugu, Kannada, Malayalam, Bengali, Tamil Speaking Regions. Reports on AKAM events for Anchor and Non-Anchor Months were furnished to DFS.
> 14th June 2023 - World Blood Donor Day-2023 was observed, and our MD & CEO has administered the World Blood Donor Day Pledge.
> 13th to 15th August 2023 - Har Ghar Tiranga Campaign conducted across INDIA.
> 15th August 2023 - Partition Horror Day conducted at 25 selected branches across INDIA.
> 02nd October 2023 - Swachata He Seva campaign organized successfully by Cleaning Marina Beach and Park in Mount Road
> 26th November 2023 - Constitutional Day Pledge administered by MD & CEO
> 26th January 2024 - Bank celebrated 75th Republic Day at our Central Office and across Regional Offices. Top Management, Executives and Staff Members attended the unfurling ceremony at the Central Office.
> 08th March 2024 - International Womens Day celebrated across all Branches, Regional Offices and Central Office in India.
> The Bank, in coordination with SLBC, led the Vikisit Bharat Sankalpa. Initiative, empowering citizens through schemes like PMSVANidhi, Mudra, PMFME towards a developed India by 2047.
Other activities
> 21st to 28th July 2023 - Compliance Awareness week organised across India.
> 15th August 2023 - Independence Day greetings published in The Hindu - English Newspaper
> 30th October 2023 to 05th November 2023 - Vigilance Awareness Week (VAW) 2023 organized by the Bank under the guidelines under CVC guidelines, including Walkathon at Besant Nagar Beach.
> 10th February 2024 - Advertisement Aired on 88th Foundation Day Celebration through FM Radio Stations along with special Live action video posted on social media
Bank hosted/participated in the following Parliamentary (Lok Sabha & Rajya Sabha) Committee Meetings
held during the FY 2023-24
> 19th April 2023 -Study Visit of the Development - related Parliamentary Standing Committee on Industry at Mumbai.
> 17th May 2023 - Study visit of Committee on Government Assurances, Rajya Sabha at Chennai
> 19th May 2023 - Study Visit of the Committee on Subordinate Legislation, Lok Sabha at Ooty
> 03rd July 2023 - Study Visit of the Committee on Government Assurances (2022-23), Rajya Sabha at Chennai
> 06th July 2023 Study Tour Programme of the Standing Committee on Social Justice and Empowerment (202223) at Coimbatore
> 19th August 2023 - On the spot Study Visit of the Committee on Estimates, Lok Sabha at Rameshwaram
> 21st August 2023 - Study Tour of the Standing Committee on Finance (2022-23) in Chennai
> 26th August 2023 - Study visit of the Standing Committee on Rural Development and Panchayati Raj in Chennai
> 04th October 2023 - Study Visit of the Public Accounts Committee (2023-24) at Goa.
> 10th October 2023 - Study Visit of the Standing Committee on Communications and Information Technology (2023-24) at Mumbai
> 03rd November 2023- Study Visit of the Department-related Parliamentary 03rd November 2023- Standing Committee on Industry at Srinagar
> 04th November 2023- Study Visit of the Standing Committee on Labour, Textiles and Skill Development at Swaraj Dweep (Havelock Island)
> 08th January 2024 - Studt Visit of the Committee on Welfare of Other Backward Classes (2023-24) at Chennai.
> 25th January 2024 - Study Visit of Department - related Parliamentary Standing Committee on Industry at Mahabalipuram.
Social Media
> The Banks official Social Media platform was effectively used to enhance the brand image of the Bank. A dedicated social media team has been formed to further enhance and build our Brand Image.
> As of March 31,2024, our subscriber count on YouTube - 3,60,203, Facebook - 1,14,718, Instagram - 86,631, X - 40,936 and LinkedIn - 29,068 totaling 6,31,556 subscribers
> Additionally, we are committed to regularly updating our social media channels with posts about our products and services, educating our customers and staff and significantly boosting our Banks marketing visibility.
> During FY 2023-24, 853 posters/flyers/videos were posted on social media and 533 customer complaints received through social media were meticulously attended and resolved within 48 hours.
Corporate Social Responsibility
During FY 2023-24, the Bank spent a total of Rs.5.58 Crores on Corporate Social Responsibility (CSR), benefiting about 176,695 beneficiaries.
OUTLOOK FOR BANKING SECTOR
Public Sector Banks cumulative profit has crossed 2nd time the Rs.1 lakh crore-mark in the financial year ended March 2024. All the 12 Public Sector Banks have crossed the first-time cumulative profit of Rs.1 lakh crore in the previous financial year ended March 2023. The 12 PSBs witnessed 34.93% increase in net profit to Rs.1,41,203 Crore compared to Rs.1,04,649 Crore earned in 2022-23 due to higher interest income and improvement in management of non-performing assets.
Going forward, the Banking sector may continue to see double digit credit growth facilitated by a large increase in capex by the centre, increase in MSME loan supported by PLI scheme and increase in retail credit demand due to partnership with fintech for quick loan sanction and disbursement. However, Banks may face pressure on Net Interest Margin (NIM) because of rise in funding cost faster than lending cost and it is expected the repo rate cut cycle may start from the 2nd half year of the financial year 2024-25. Banks also see challenges from the deposit mobilisation front especially from low-cost CASA deposits. The strong competition among Banks for deposit mobilisation will keep the interest expenses for the Bank at higher side.
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