IOB RBI Inspection Reveals RWA Calculation Deficiencies

Nature of Disclosure: Regulatory compliance disclosure regarding findings from the RBI Inspection for Supervisory Evaluation (ISE) 2026.

Specific Deficiencies Identified:

The RBI inspection identified that applicable risk weights were not applied in four specific areas:

RWA for Corporates (ECB loan under syndication) where external rating did not cover the entire syndicate exposure
RWA for Corporates (ECB loan under syndication) where external rating did not include the lead Bank's name in syndicate
RWA for Exposures under Syndication-Secondary Arrangement acquired from Banks not operating in host jurisdiction
RWA for undisbursed exposure where master was not opened in Core Banking Solution (CBS), resulting in under-reporting of total exposure as of March 31, 2026

RWA and CRAR Comparison (₹ in Crores):

| Particular | Calculated by Bank | Assessed by RBI |

| Total Risk Weighted Assets | 1,97,931.60 | 2,05,323.69 |

| Common Equity Tier 1 / Tier 1 Capital | 33,524.49 | 33,514.49 |

| Total Capital | 39,143.98 | 39,133.98 |

| CET1/Tier I CRAR (%) | 16.94 | 16.32 |

| Tier 2 CRAR (%) | 2.84 | 2.74 |

| Total CRAR (%) | 19.78 | 19.06 |

| Leverage Ratio (%) | 6.60 | 6.58 |

Key Assurances Provided:

The RWA and CRAR assessment by RBI has no impact on Net Profit as reported on March 31, 2026
CET1 CRAR and Total CRAR remain well above RBI minimum requirements (5.50% CET1 and 11.50% Total CRAR)
The bank has already factored these observations into RWA and CRAR calculations for the quarter ended September 30, 2026

Disclosure Details: