Archive · 20 Jul 2026
IOB targets Rs 10 lakh crore business in two years
Indian Overseas Bank (IOB) wants to grow its business to ₹10 lakh crore in the next two years.
To do this, they plan to raise $1 billion through special deposits and loans.
The bank also aims to grow its credit by 12-13% each year.
They have already raised $300 million and plan to raise more.
The bank is also preparing for new rules that might require them to set aside more money for potential losses.
The CEO, Ajay Kumar Srivastava, wants to improve the bank's performance and make it more profitable.
He also wants to focus on getting more low-cost funds and keeping the bank's loans in good shape.
IOB aims to raise $1 billion through FCNR(B) deposits and OFCB, with $300 million already mobilized.
The bank expects to require ₹3,000 crore in additional provisions for the ECL framework by April 2027.
IOB targets 12-13% credit growth in FY27, with a historical average of 20% annually.
The bank has sanctioned and disbursed ₹2,600 crore under the ECLGS 5.0 scheme, aiming to cover the entire ₹4,500 crore eligible universe.
IOB aims to grow its business to ₹10 lakh crore in the next two years, adding ₹2.5 lakh crore to its current ₹7 lakh crore business.
- Who
- Indian Overseas Bank (IOB) and its MD & CEO Ajay Kumar Srivastava
- What
- IOB's plans to raise funds, credit growth outlook, and business growth targets
- When
- Over the next two years, with specific targets set for FY27
- Where
- India, with operations in four overseas centres
- Why
- To achieve significant business growth and improve profitability
Optimistic Growth
Challenges Ahead
Credit Growth
Optimistic Growth
The bank aims for 12-13% credit growth in FY27, with a historical average of 20% annually.
Challenges Ahead
The bank needs to manage asset quality and contain slippages to achieve these growth targets.
Fundraising
Optimistic Growth
IOB plans to raise $1 billion through FCNR(B) deposits and OFCB, with $300 million already mobilized.
Challenges Ahead
The bank must meet the ECL framework requirements, which may require additional provisions of around ₹3,000 crore.
- FCNR(B) Deposit Target
- $1 billion
- OFCB Target
- Balance of $1 billion
- ECL Framework Provisions
- ₹3,000 crore
- Credit Growth Outlook
- 12-13% year-on-year
- ECLGS 5.0 Exposure
- ₹4,500 crore
- Business Growth Target
- ₹10 lakh crore in two years
- Current Business Size
- ₹7 lakh crore