IOIndian Overseas Bank532388Audit report shared

RBI inspection flags risk-weight gaps; assessed Total CRAR 19.06% vs 19.78% calculated by bank

RBI's ISE 2026 found some risk weights were not applied, so assessed Total Risk Weighted Assets are Rs. 2,05,323.69 crore vs Rs. 1,97,931.60 crore calculated by the bank.

By ScoutQuest · Sat 24 Oct 2026, 7:05 PM IST · 2 min read

Total RWA (RBI assessed vs bank)

Rs. 2,05,323.69 crore vs Rs. 1,97,931.60 crore

Total CRAR (RBI assessed vs bank)

19.06% vs 19.78%

CET1 / Tier 1 CRAR (RBI assessed vs bank)

16.32% vs 16.94%

What the update says

The bank informed the exchanges that as part of RBI's Inspection for Supervisory Evaluation (ISE) 2026, it was observed that applicable risk weights were not applied in four identified situations. Risk Weighted Assets (RWA) is the loan book adjusted for risk; a higher RWA pulls down the capital adequacy ratio (CRAR) for the same amount of capital.

Where risk weights were not applied

• RWA for Corporates (ECB loan under syndication) where the external rating does not cover the entire exposure of the syndicate.
• RWA for Corporates (ECB loan under syndication) where the external rating does not carry the name of the lead bank in the syndicate.
• RWA for exposures under Syndication-Secondary Arrangement, acquired from banks not operating in the host jurisdiction.
• RWA for undisbursed exposure where the master was not opened in Core Banking Solution (CBS), leading to under reporting of total exposure as on March 31, 2026.

Bank's numbers versus RBI's assessment

The figures below are Rs. in Crores, as on March 31, 2026.

• Total Risk Weighted Assets: 1,97,931.60 calculated by the bank, 2,05,323.69 assessed by RBI.
• Common Equity Tier 1 / Tier 1 Capital: 33,524.49 calculated by the bank, 33,514.49 assessed by RBI.
• Total Capital: 39,143.98 calculated by the bank, 39,133.98 assessed by RBI.
• CET1 / Tier 1 CRAR: 16.94% calculated by the bank, 16.32% assessed by RBI.
• Tier 2 CRAR: 2.84% calculated by the bank, 2.74% assessed by RBI.
• Total CRAR: 19.78% calculated by the bank, 19.06% assessed by RBI.
• Leverage Ratio: 6.60% calculated by the bank, 6.58% assessed by RBI.

What the bank has clarified

• The RWA and CRAR as assessed by RBI as part of ISE 2026 do not have any impact on the Net Profit as on March 31, 2026 reported by the bank.
• The CET1 CRAR and Total CRAR as on March 31, 2026 remain well above the RBI specified minimum CET1 CRAR of 5.50% and Total CRAR of 11.50%.
• The bank has already factored these observations into the calculation of RWA and CRAR for the quarter ended September 30, 2026.

How a retail investor can read this

• RWA increased by roughly 7,392 crore in RBI's assessment (from 1,97,931.60 to 2,05,323.69), but the capital figures moved only marginally, so the ratios came down mainly because the base of risk-weighted assets grew.
• Even on RBI's assessed numbers, Total CRAR of 19.06% and CET1 CRAR of 16.32% are well above the regulatory floors of 11.50% and 5.50% respectively.
• The bank states there is no effect on reported profit, and that the correction is already built into the September 30, 2026 quarter numbers, which indicates the capital position disclosed for that quarter reflects the revised treatment.

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