IOB: RBI Inspection Notes RWA Discrepancies, CRAR Impacted
Indian Overseas Bank (IOB) has disclosed observations from the RBI's Supervisory Evaluation (ISE) 2026, highlighting instances where applicable risk weights were not correctly applied to certain corporate exposures and undisbursed loans. This resulted in a revised assessment of Risk Weighted Assets (RWA) and Capital to Risk-Weighted Assets Ratio (CRAR) by the RBI. The RBI's assessment shows higher RWA (₹2,05,323.69 Cr vs. Bank's ₹1,97,931.60 Cr) and a lower Total CRAR (19.06% vs. Bank's 19.78%). However, the bank states these revisions do not impact its net profit for March 31, 2026, and its CRAR remains well above regulatory minimums. IOB has already incorporated these observations for the quarter ending September 30, 2026.
Key Highlights
- RBI inspection identified RWA misapplication in corporate loans and undisbursed exposures.
- RBI assessed higher RWA (₹2,05,323.69 Cr) compared to the bank's calculation.
- Total CRAR assessed by RBI is 19.06%, below the bank's 19.78%.
- No impact on net profit; CRAR remains above regulatory minimums.
- Bank has incorporated RBI observations for the September 2026 quarter.
Price Impact
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