Indian Overseas Bank Waives Minimum Balance Charges: A Relief for Savings Account Holders
Indian Overseas Bank (IOB) has announced a significant decision to waive penal charges for non-maintenance of Minimum Average Balance in its Saving Account (SB-Public), effective October 1, 2025. This move is aimed at offering relief to customers and making the banking experience easier.
Background and Context
The Indian banking sector has been witnessing a surge in demand for convenient and customer-friendly banking services. In recent years, several banks have introduced measures to reduce or waive minimum balance charges, providing relief to account holders. IOB’s decision to waive minimum balance charges for its savings account holders is a step in this direction.
Details of the Waiver
The waiver of minimum balance charges will be applicable to IOB’s Saving Account (SB-Public) from October 1, 2025. However, the charges for the period up to September 30, including any shortfall, will continue to be levied as per the existing rules. The bank has already waived minimum balance charges for various schemes, including Pradhan Mantri Jan-Dhan Yojana, Basic Savings Bank Deposit Account, Small Accounts, IOB SB Salary Package, IOB Sixty Plus, IOB SB Pensioner Scheme, and IOB SB Govt. Account.
Reaction from the Bank’s Management
Ajay Kumar Srivastava, Managing Director & CEO, IOB, expressed happiness over the decision, stating that it will provide significant relief to account holders. The bank’s management believes that this move will enhance customer satisfaction and make the banking experience more convenient.
Exceptions to the Waiver
However, the penalty for not maintaining minimum balance will continue for the premium savings account scheme of the bank. The premium savings accounts that will continue to charge for not maintaining minimum average balance include SB-MAX, SB-HNI, SB Prime, SB Priority, SB Privilege, NRI Elevate, NRI Privilege, and NRI Signature.
Other Developments
In other news, the Reserve Bank of India (RBI) imposed a penalty of Rs 31.8 lakh on IOB for non-compliance with certain directions on ‘Priority Sector Lending (PSL) – Targets and Classification’. The penalty was imposed based on supervisory findings of non-compliance with RBI directions and related correspondence.
Impact on the Bank’s Stock Price
The business update was shared after market hours, and the stock settled 2.67% higher at Rs 39.54 apiece on the NSE, compared to a 0.10% decline in the benchmark Nifty 50. The shares earlier during the day rose as much as 3.19% to Rs 39.74 per share.
Year-to-Date Performance
IOB shares have fallen 31.51% in the last 12 months and 23.61% year-to-date. The bank’s stock price has been affected by various factors, including the COVID-19 pandemic, economic slowdown, and intense competition in the banking sector.
Conclusion
Indian Overseas Bank’s decision to waive minimum balance charges for its savings account holders is a positive move that will provide relief to customers and enhance their banking experience. However, the bank’s stock price has been under pressure due to various factors, including the pandemic and economic slowdown. As the banking sector continues to evolve, it is essential for banks to introduce customer-friendly measures and comply with regulatory requirements to remain competitive.
For more information on the Indian banking sector and stock market news, please visit our Indian stock market news page. You can also check our banking news section for the latest updates on the banking sector.
