CIR NO.08/18 18.05.2017

Dear Comrades,

GOING GETS TOUGH – BRING OUT THE BEST IN YOU

Yes Comrades! It is a nightmare once again. The promise and hope of a turnaround thwith achieving of net prot in the 4 Quarter was left to be a mirage.

Time and again, uninching WILL of our members to meet challenges head on, to swim

against threatening tides, to emerge winners in the face of crisis, has been etched in the

pages of IOB & IOBOA's history.

The results of the nancial year 2016 – 17 gives us a mixed feeling as it has green leaves

and red points as well for our concern. The misery has been compounded through

Slippage out of MOC for about Rs. 2000 Crore, which also proved to be the spoil sport of a

good performance.

A quick glance at the positive side:

Ÿ The Operating Prot has increased year on year basis and stood at Rs. 3650.21

Crores.

Ÿ Other Income increased by Rs. 844.38 Crores compared to previous year.

Ÿ Reduction in operating expenses by Rs.113.48 Crores.

Ÿ Notable improvement in the Net Interest Margin to 2.03% from 1.94%, though

small, a gain is a gain.

Ÿ Increase in CASA by 7.37% over previous scal

Ÿ Earnings per Share improved by Rs. 4.08 which is a result of improved

performance.

Ÿ Recovery made during 2016-17 is Rs. 8710 crores, a big turnaround compared to

2015-16 of Rs. 5872 Crores.

Ÿ Bank has met all its commitments under bonds, debentures and coupons.

INDIAN OVERSEAS BANK OFFICERS’ ASSOCIATIONRed. No. 321/MDS (Recognised by the Management)

( Afliated to All India Bank Ofcers’ Confederation )

Administrative Office : 763 Anna Salai, Chennai - 600 002

& General : 28517072, 28521925, 28525214 President / General Secretary : 28514134, Fax : 28529515

e.mail : ioboa@ iobnet.co.in website : www.ioba.in

Comrades, the positive results are from Other Income, Increase in CASA, rationalising

high cost deposit. The persuasive recoveries in NPA and expansion under Retail

segment have contributed to a great extent in visible increase in Gross Prot. This is

possible only because of the dedication and hard work of our Comrades.

The above positives had not been strong enough to ensure a robust balance sheet. The

bourgeoning NPAs and the resultant provisions have robbed the fruits of our hard

labour and the bank had posted a net loss of Rs. 2,897.33 Crore for the previous scal.

Continued misrepresentation in the media about our bank is another depressing factor.

It is now left to the collective strength and will of all of us to take the “bull by its horn”

and face the challenges with grit and determination. Shying away from credit expansion

under the guise of probable staff accountability has contributed to the worsening of the

situation and though there has been a substantial credit expansion in Retail Credit much

accretion needs to be done in corporate accounts. The recent establishment of Retail

Business Mart is a step in the right direction. The issues espoused by us for redressing

vide our Circular No. 01/17 dated 01.01.2017 is being pursued relentlessly, is engaging

the attention of management and expected to be redressed shortly.

Comrades, though we are at crossroads, we continue to keep our hope aoat and

positivity intact and “pull up our socks” to tackle the greatest menace in the banking

arena – NPA.

NPA had been continuously an ordeal for the past eight quarters and we have been

battling ceaselessly to control the same. This menace is threatening and engulfed the

entire banking system including IOB. We are deeply disheartened but then IOBOA has

never taken things lying down. It is time to act. Let us take a vow in our Golden Jubilee

Year to contribute our mite for our cherished dream of turnaround.

We have been repeatedly exhorting our comrades to go for aggressive recovery of NPAs

and are happy that due to the never say die attitude exhibited by the rank and le the

bank has witnessed an impressive recovery of Rs.8710 crores in the current scal. It is

time for motivation through promotion and transfers. It is need for forging unity to walk

shoulder to shoulder to achieve our mission. Surveillance will only demoralize the work

force and it will be counter productive.

AUGMENT CASA ACCELERATE RETAIL CREDIT ARREST NPA

IOBOA ZINDABADAIBOC ZINDABAD

OUR UNITY ZINDABAD

(T. MURALI SOUNDARARAJAN)President

(B. SRINIVASAN)General Secretary

With warm regards,

Yours Comradely,

Comrades, though we work hard, sacricing personal comforts and conveniences, much

needs to be done further, for effecting a turnaround and we are condent that the

members would stead-fastedly concentrate on the following areas.

Ÿ Expansion of Retail Loan portfolio and MSME

Ÿ Increase thrust on upgradation of NPAs / recovery

Ÿ Nil slippage of standard assets

Ÿ Accelerate further the growth of CASA

Ÿ Curtailment of avoidable expenditure

Ÿ Improvement of customer service

Ÿ Leveraging of technology and promoting alternate delivery channel

Comrades, being at the eld level would have enabled you to possess vital market

information and in depth knowledge and its time to harness the same for the growth of

the bank. We request you to provide us your feedback / suggestion regularly which

would enable us to disseminate the same for the common good of the bank. All our ofce

bearers would be organizing recovery camps to bring visible growth in NPA

management and we request members to enthusiastically participate for making it a

resounding success.

Comrades, as being possessed with enormous capabilities the current situation provides

you the right opportunity to showcase your sacrice, strength of purpose, single minded

devotion and the will to win. We have all these comrades, we have them in abundance.

So, let us all be up and doing.

“Extraordinary challenges call for extraordinary efforts”

Cordially invites you to the

Golden Jubilee Finaleat

ETHIRAJ COLLEGE AUDITORIUM

70, Ethiraj Salai, Egmore, Chennai - 600 008.

on Friday 2nd June 2017, at 6.00 pm

T. Murali SoundararajanPresident - IOBOA

B. SrinivasanGeneral Secretary - IOBOA

Chief Guest

Shri R. SUBRAMANIAKUMARManaging Director & Chief Executive Ofcer

Indian Overseas Bank

Guests of Honour

Shri K. SwaminathanExecutive Director - IOB

Com. D.T. FrancoGeneral Secretary - AIBOC

Com. Dilip SahaPresident - AIBOC