Indian Overseas Bank Removes Minimum Balance Charges on Select Savings Accounts

Indian Overseas Bank has announced that, effective October 1, 2025, it will waive penalty charges for non-maintenance of Minimum Average Balance (MAB) in its SB-Public savings account scheme. This move is designed to make banking simpler and more convenient for everyday account holders. 

However, the waiver applies exclusively to the SB-Public account, and any charges accumulated up to September 30, 2025 will still be applied according to existing rules.

Premium Accounts Unaffected

Customers with premium savings accounts such as SB-MAX, SB-HNI, SB Prime, SB Priority, SB Privilege, NRI Elevate, NRI Privilege, and NRI Signature will continue to follow the standard minimum balance requirements, with no changes to their existing charges. The bank clarified that this waiver is aimed at easing routine banking for regular account holders while maintaining standard policies for premium account schemes.

Bank’s Performance and Presence

Founded in 1937 and nationalised in 1969, Indian Overseas Bank operates a vast network of 3,345 branches and approximately 3,461 ATMs across India. For the quarter ending June 30, 2025, the bank reported a total business of ₹5,93,213 crore, with an operating profit of ₹2,358 crore and a net profit of ₹1,111 crore. These figures reflect the bank’s strong presence and stable operations in the country’s banking sector.

Previous Waivers and Initiatives

Indian Overseas Bank has a history of waiving minimum balance charges for specific schemes to support broader financial inclusion. Previously, accounts such as PMJDY, BSBDA, Small Accounts, IOB SB Salary Package, IOB Sixty Plus, IOB SB Pensioner Scheme, and IOB SB Government Account have benefited from similar exemptions. 

Share Price Update

Following the announcement, Indian Overseas Bank share price closed at ₹39.56, up ₹0.02 or 0.051% as of October 1, 2025, 5:19 PM IST. The Indian Overseas Bank market capitalisation stood at ₹76,121 crore.

Read more:Jio Payments Bank's 'Savings Pro' Offers 6.5% Interest

Conclusion

The removal of minimum balance charges for SB-Public account holders by Indian Overseas Bank represents a significant step towards easing banking for regular customers. While premium account holders continue to adhere to existing rules, the move reflects the bank’s commitment to inclusive financial services and enhancing the customer experience.

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