Indian Overseas Bank

Dear Esteemed Shareholders, Valued Customers, and Dedicated Employees,

It is with great pleasure that I connect with you through this

Annual Report for the Financial Year 2024-25. As Non-Executive Chairman of Indian Overseas Bank (IOB), it is my privilege to share insights into the broader environment in which your Bank operates and to reflect on our collective journey over the past year – a year marked by robust performance and strategic resilience.

The Global Economic Context: Navigating a Shifting Landscape

The fiscal year 2024-25 witnessed the global economy continue its path of gradual recovery, though this was characterized by regional divergences and persistent uncertainties. Global growth projections for 2025 and 2026 remain moderate, hovering around 2.8% to 3.0%. Challenges such as lingering inflation in some key economies, evolving geopolitical dynamics, and concerns around trade fragmentation required careful navigation by businesses worldwide. However, the global outlook also presented opportunities stemming from technological advancements, particularly in the digital sphere, and a renewed focus on sustainable development.

The Indian Economy: A Beacon of Growth and Opportunity

In contrast to the modest global outlook, the Indian economy demonstrated remarkable strength and emerged as a pillar of global growth. With an estimated GDP expansion of around 6.5% in FY 2024-25, India is set to continue its trajectory as the fastest-growing major economy, with strong forecasts for FY 2025-26 as well.

This impressive performance has been driven by robust domestic demand, sustained government focus on infrastructure and manufacturing, and the inherent dynamism of our populace. Prudent policy measures have helped manage inflation, while structural reforms continue to enhance the long-term growth potential of the nation, aligning with the vision of a ‘Viksit Bharat'.

India's Banking Sector: Fostering Stability and

Inclusive Growth

The Indian banking sector, the lifeline of our economy, mirrored this resilience and strength. FY 2024-25 saw the sector further consolidate its health, marked by improved asset quality, robust capital adequacy, and sustained credit offtake. The Reserve

Bank of India's astute guidance and regulatory oversight have been instrumental in maintaining financial stability while fostering an environment conducive to growth. The ongoing emphasis on digitalization, innovation, financial inclusion, and robust governance frameworks continues to transform the sector, preparing it for future opportunities and challenges.

Indian Overseas Bank: Progress and Strategic Direction

I am delighted to report that Indian Overseas Bank has navigated the complexities of the year with commendable success, delivering strong financial and operational results. The Bank registered sustained profitability, achieved a significant improvement in asset quality, recorded healthy business expansion, and further strengthened its capital base. This performance is a testament to the focused efforts of our management team and the unwavering dedication of our employees. The detailed operational highlights and financial figures are elaborated in the MD & CEO's message and the financial statements within this report.

As a Board, our focus has been on ensuring that the Bank adheres to the highest standards of corporate governance, maintains a prudent risk management framework, and aligns its strategic objectives with long-term stakeholder interests and national priorities. We have guided the Bank in its mission to:

• Embrace Digital Innovation:

To enhance customer experience, improve operational efficiency, and expand our reach.

• Uphold Customer Trust:

By continually refining our services and product offerings to meet evolving customer needs.

• Ensure Prudent Growth:

Balancing business expansion with robust risk management and a focus on sustainable asset quality.

• Contribute to Financial Inclusion:

Playing our part in bringing formal financial services to all sections of society.

• Foster Human Capital:

Nurturing our talent pool and creating an environment of continuous learning and development.

The Board has full confidence in the Bank's leadership, spearheaded by our MD & CEO, to execute the defined strategies effectively and to navigate the path ahead with diligence and foresight.

Outlook

Poised for Continued Contribution Looking forward, Indian Overseas Bank is well-positioned to leverage the promising opportunities presented by the Indian economy's growth trajectory. Our strategic emphasis will remain on sustainable valuecreation,drivenbysoundbankingprinciples,technological advancement, and a deep commitment to our customers and the communities we serve. We will continue to play a vital role in supporting India's economic progress.

Corporate Social Responsibility (CSR): Commitment to Society

Indian Overseas Bank remains steadfast in its commitment to corporate social responsibility. We believe in contributing to the well-being of the communities we operate in and have undertaken several initiatives in areas such as Education, Healthcare and Sanitation, Environmental Protection and Social cause, Empowerment of women & Senior Citizen etc. Further details of our CSR activities are available in the relevant section of this report.

Acknowledgements:

On behalf of the Board of Directors and myself, I extend our deepest gratitude to you, our esteemed shareholders, for your continued confidence and support. Our sincere thanks go to our millions of valued customers for their trust and partnership. I wish to place on record our appreciation for the hard work, dedication, and commitment of our entire team of IOBians, whose efforts are the bedrock of our success.

We are grateful to the Government of India, especially the Ministry of Finance, for their invaluable guidance and support. Our thanks are also due to the Reserve Bank of India for their prudent regulation and unwavering support. We also acknowledge the constructive engagement with SEBI, stock exchanges, and other regulatory authorities.

I thank my esteemed colleagues on the Board for their wisdom, collective vision, and unwavering support in guiding the Bank. As we move forward, we are inspired by our rich legacy of over 89 years and are energized by the opportunities that lie ahead. Indian Overseas Bank remains committed to being a pillar of financial strength and a trusted partner in India's journey of growth and prosperity.