Indian Overseas Bank has officially announced the appointment of Mr Raghuram Mallela as Company Secretary & Compliance Officer, effective 27.02.2026. The decision was approved by the bank's Board of Directors during a meeting held on 27.02.2026, which commenced at 12 Noon and concluded at 17:15 p.m.

Board Meeting Outcome

The bank has formally communicated the appointment outcome to stock exchanges under Regulation 6 and 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The following table summarizes the key appointment details:

Professional Background and Qualifications

Mr Raghuram Mallela brings substantial expertise to his new role at Indian Overseas Bank. He holds a Bachelor of Commerce degree and is an Associate Member of the Institute of Company Secretaries of India with Membership No. A31442. Additionally, he is a Certified Associate of Indian Institute of Banking (CAIIB), demonstrating his comprehensive understanding of both corporate secretarial practices and banking operations.

Prior to joining Indian Overseas Bank, Mallela was associated with Union Bank of India. Notably, he served as Company Secretary of erstwhile Andhra Bank before its amalgamation with Union Bank of India, providing him with valuable experience in managing corporate governance during significant organizational transitions.

Deputy Company Secretaries Designation

To ensure continuity in regulatory compliance and corporate governance functions, the bank has designated two Deputy Company Secretaries who will be authorized to handle responsibilities in Mallela's absence:

Both Deputy Company Secretaries are severally authorized to execute and sign necessary papers, disclosures, and intimations under SEBI (Listing Obligations & Disclosure Requirements) Regulations, ensuring uninterrupted compliance with regulatory requirements.

Regulatory Compliance

The appointment has been made in accordance with Regulation 6 and 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The bank has fulfilled its disclosure obligations by providing comprehensive details as required under SEBI regulations, including the appointee's professional background, qualifications, and experience. This appointment reinforces Indian Overseas Bank's commitment to maintaining robust corporate governance standards and regulatory compliance in its operations.

Indian Overseas Bank announced on February 27, 2026, that it has received an initial credit rating assignment from S&P Global Ratings Singapore Pte. Ltd. The international credit rating agency assigned the bank a fresh Issuer Credit Rating of BBB/Stable/A2 along with a Standalone Credit Profile of bbb-.

Rating Details and Components

The comprehensive rating assignment covers multiple parameters, all verified on February 27, 2026:

Rating Rationale and Government Support

S&P Global Ratings based the BBB rating on the expectation of extraordinary government support if needed. The long-term rating sits one notch above the bank's standalone credit profile assessment, reflecting the very high likelihood of timely and sufficient government support during financial distress. The rating agency emphasized Indian Overseas Bank's very important role as a public sector bank in promoting financial inclusion through increased access to deposit and lending services.

The bank benefits from very strong government links through majority government ownership of 92.4% as of December 2025 and control. S&P noted that the starting point for ratings on Indian Overseas Bank aligns with any bank operating predominantly in India at bbb-.

Financial Strengths and Market Position

S&P highlighted several key strengths supporting the rating assignment. The bank maintains strong capitalization with a risk-adjusted capital ratio of 10.2% as of March 31, 2025, calibrated for an economic risk score of 5. The rating agency expects Indian Overseas Bank to maintain a stable RAC ratio of 10.0%-10.5% over the next two years through steady internal capital generation and timely capital infusions.

The bank ranks among India's top 15 banks and maintains a strong presence in southern India, particularly Tamil Nadu. However, it remains a small player compared to other rated government-owned banks such as State Bank of India, Indian Bank, and Union Bank of India.

Capital Raising and Compliance Plans

Indian Overseas Bank has received board approval to raise additional INR 40 billion of capital through qualified institutional placements before end-fiscal 2026. The bank previously raised about INR 14.4 billion via such placements in March 2025. S&P expects the bank to raise additional capital over the next year to reduce government ownership to 75% from the current 92.4%, complying with the Securities and Exchange Board of India's minimum public float requirement of 25% for listed entities.

Risk Factors and Asset Quality

The rating agency identified several risk factors, including above-average loan growth and loan concentration. The bank's loan book remains concentrated in Tamil Nadu, accounting for about 36% of total loans as of December 2025. Additionally, the top 20 borrowers represent about 15% of total advances, higher than many domestic peers, though most are government-owned entities with state government guarantees.

Exposure to the agriculture sector presents another risk factor, accounting for 32% of total loans compared to the industry average of 13%. However, Indian Overseas Bank has mitigated this risk by taking gold as collateral. S&P anticipates credit losses will climb to 0.6%-0.8% of customer loans over the next two years from 0.57% in the first nine months of fiscal 2026.

Funding and Liquidity Profile

The bank demonstrates strong funding from a solid retail deposit base, benefiting from customer confidence in government ownership. Deposits consist mainly of granular retail deposits, with the top 20 depositors accounting for only 4.1% of total deposits at March 2025. Indian Overseas Bank maintained a strong stable funding ratio of about 134% on average over the past five years, higher than most domestic peers.

The bank's loan-to-deposit ratio stood at 84% as of December 2025, similar to public sector bank peers, though S&P expects this may increase to 85%-90% over the next two years as loan growth outpaces deposit growth.