Indian Overseas Bank (IOB) has issued the official notification for the recruitment of Local Bank Officer (LBO) posts. The IOB LBO Recruitment 2025 notification was released on 9 May 2025, and the online application process will be open from 12 May 2025 to 31 May 2025. A total of 400 vacancies are available under this recruitment drive.
Indian Overseas Bank LBO Recruitment 2025 Overview
A Canara Bank employee was detained by the Perambalur District Crime Branch police on Sunday for fabricating gold loan paperwork and defrauding the bank of Rs.1.2 crore.
Akash Chauhan, the 29-year-old officer, hails from Udaipur, Rajasthan. He was employed at Canara Bank's Labbaikudikadu branch in the Perambalur area, namely in the Gold Loan division.
The police claim that Akash started working for the bank in May 2022. He made fictitious gold loan documents in five customers' names while he was there. He moved the full amount of the loan, Rs.1.2 crore, into his personal bank account rather than disbursing it to the clients.
The fraud was discovered after a complaint was filed by N. Loga Krishnakumar, a 46-year-old Assistant General Manager from the Canara Bank regional office in Namakkal. After investigating the complaint, the District Crime Branch confirmed the fraud and arrested Akash Chauhan.
A press release by the police confirmed that Akash had misused his position to steal money from the bank by faking documents and cheating the system. Gold loan fraud is a serious threat to the credibility of banks and NBFCs (Non-Banking Financial Companies). While gold loans are a valuable financial tool for millions, increasing fraud cases highlight the urgent need for stronger checks, transparency, and accountability in the system.
The Assistant General Manager (AGM) of the State Bank of India (SBI) has been arrested by the Crime Investigation Department (CID) for his role in a loan fraud case involving Rs 27 crore in 2013.
From 2009 to 2011, the 53-year-old officer, K Sanjay, was employed as a Relationship Manager at SBI's Balanagar SME (Small and Medium Enterprises) branch. He is charged with using unlawful means to assist a business called Adarsh Communications Pvt. Ltd. in obtaining a loan of Rs 27 crore while he was employed at the bank.
These illegal methods included:
Accepting fake documents (forged papers).
Falsely claiming that agricultural land was actually non-agricultural, so it could be used to get the loan.
Ignoring bank rules and not properly checking or securing the property kept as guarantee (collateral) for the loan.
The main people behind Adarsh Communications are:
M. Anjaneyulu (Managing Director)
Manikonda Reeta (Director and his wife)
They were hiding from the police since 2013 but were finally caught by the CID in Bengaluru in May 2024.
Another bank employee, G. Ravindranath, who was working as a Customer Support Officer at the same branch, is also accused in the case. However, he has not yet been arrested.
According to CID officials, Sanjay and others broke bank rules, trusted fake documents, and failed to protect the bank’s money. Because of their actions, the bank lost a huge amount.
The charges filed against them include:
Cheating
Criminal breach of trust (breaking the trust given to them)
Forgery (using fake documents)
K Sanjay was brought to court and is now in judicial custody (kept in jail by court orders until the investigation or trial continues). More details will be released soon.
An assistant manager at the Rajim branch of Indian Overseas Bank was arrested for stealing more than Rs 1 crore through the issuance of fraudulent jewelry loans. Ankita Panigrahi, the accused, was apprehended from Bargarh, Odisha, by the State Economic Offenses Investigation Bureau (EOW). The police started questioning her and pursuing additional legal action after the arrest.
Ankita Panigrahi was employed in 2022 as an Assistant Manager at Indian Overseas Bank's Rajim branch in the Gariaband district. She created fictitious jewelry loan records there by abusing locked bank accounts. She was able to take out Rs 1 crore 65 lakh from the bank in fraud by doing this.
When this fraud was discovered, the bank fired her right away. The Economic Offenses Wing (EOW) then formally filed a case against her in 2023. The case was brought under Section 409 of the Indian Penal Code, which addresses criminal breach of trust by a public worker, and Section 13(a) of the Prevention of Corruption Act, 1988 (as amended in 2018).
For a long time, Ankita had been absconding (hiding from the authorities), but the EOW finally tracked her down in Bargarh, Odisha. She was taken into police custody (remand) so that officials could question her thoroughly about the fraud. The EOW is now conducting a detailed investigation to uncover the full extent of the scam and to check whether other people were involved.
There is a lot of talk about the new PLI scheme that banks have created for senior personnel. A few days ago, UFBU wrote to IBA requesting that banks delay the introduction of the new PLI scheme. The IBA has now been directed by the Chief Labour Commissioner to request that banks halt the new PLI Scheme. The new PLI scheme, according to bank employees, is discriminatory. Scale IV and higher officers will receive nearly double their wage, while Scale 1, Scale 2, and Scale 3 officers will receive the standard PLI.
Grade
PLI Ceiling as % of Annual Basic Pay
EDs and MDs of Nationalised Banks, DMDs, MDs, and Chairman of SBI
100%
Scale VII and Scale VIII
90%
Scale V and Scale VI
80%
Scale IV
70%
Please refer to the letter No. Nil dated 26.03.2025 of UFBU addressed to you, endorsing a copy thereof to this office along with others in connection with conciliation proceedings dated 18th and 21st March 2025 in File No. 21(17)/2025-IR of CLC(C). The contents of the letter of UFBU are self-explanatory.
The Government of India has authorized the establishment of new senior-level roles in Public Sector Banks (PSBs), a major move intended to bolster the banking industry. It is anticipated that this action will improve asset management, increase the effectiveness of nationalized banks, and give bank workers better career options.
Shri Pankaj Chaudhary, the Minister of State for Finance, gave information on the newly created roles and the updated process for determining the number of senior positions in nationalized banks during the Rajya Sabha discussion of the decision. In five nationalized banks where the position was previously unattainable, the government has authorized the creation of the Chief General Manager (CGM) position. These financial institutions are:
1. Bank of Maharashtra 2. Central Bank of India 3. Indian Overseas Bank 4. Punjab & Sind Bank 5. UCO Bank
Until now, these banks did not have a Chief General Manager (CGM) post, which serves as an important leadership position just below the Executive Director (ED) level.
The CGM post has already been available in other Public Sector Banks (PSBs), and its introduction in these five banks will ensure a more uniform administrative structure across the banking sector. The new CGM positions in these banks will be introduced from October 2024 onwards.
Apart from introducing CGM posts, the government has also revised the methodology for calculating the number of senior-level positions in PSBs. This revision affects the following positions:
Chief General Manager (CGM), General Manager (GM), Deputy General Manager (DGM), Assistant General Manager (AGM)
The number of these posts has been determined based on the business size of each bank as of March 31, 2023. The revision aims to ensure that banks have the right leadership structure to manage their operations efficiently.
Let’s have a look at the number of posts – how many CGM, GM, DGM, AGM posts are available in different banks. The maximum number of posts are available in Punjab National Bank and Bank of Baroda. The number of posts vary according to the size of business of Bank.
Bank Name
CGM
GM
DGM
AGM
Punjab & Sind Bank
4
16
48
144
Bank of Maharashtra
8
32
96
288
UCO Bank
8
32
96
288
Indian Overseas Bank
8
32
96
288
Central Bank of India
8
32
96
288
Bank of India
12
48
144
432
Indian Bank
11
44
132
396
Union Bank of India
20
80
240
720
Canara Bank
21
84
252
756
Punjab National Bank
22
88
264
792
Bank of Baroda
22
88
264
792
This new structure will ensure that banks have sufficient leadership at different levels to handle their growing operations effectively.
The Indian banking sector has been growing rapidly, with increasing loan disbursements, rising customer demand, and digital banking advancements. To keep up with this growth, banks need strong leadership and better management structures.
Earlier, the number of senior positions was not aligned with the expanding business size of banks. This led to workload imbalances, slower decision-making, and operational inefficiencies.
By introducing new CGM positions and revising the number of GMs, DGMs, and AGMs, the government is ensuring that banks have the right number of senior officials to handle operations efficiently.
This move is also in line with the government’s efforts to:
1. Strengthen public sector banks and make them more competitive.
2. Improve the financial health of banks by ensuring better monitoring of assets and loans.
3. Support economic growth by making banking services more efficient.
The government’s decision to introduce new senior-level positions in public sector banks is a major step toward strengthening India’s banking system. By ensuring better management, improved supervision, and stronger leadership, this move will help banks become more efficient, financially stable, and customer-friendly.
With the new Chief General Manager (CGM) positions and revised senior-level post structure, nationalized banks are expected to see better operational efficiency, improved risk management, and stronger career growth opportunities for employees.
This change will not only benefit bank employees but also enhance banking services for customers across India, ensuring that the public sector banking system remains strong, efficient, and well-managed in the years to come.
The recent modifications to the Performance-Linked Incentive (PLI) program for top bank executives made by the Department of Financial Services (DFS), which is part of the Finance Ministry, have been vehemently challenged by the All India Bank Employees' Association (AIBEA). According to the union, the new formula is unjust, goes against earlier agreements, and causes conflict among workers.
Bank workers can receive additional financial rewards through the PLI scheme, which is dependent on their performance. In 2018, the Indian Banks' Association (IBA) first proposed a plan in which rewards would be granted according to each employee's performance.
PLI should be based on the overall success of a bank, not on the performance of individual employees, according to the United Forum of Bank Unions (UFBU), which represents bank unions. Services related to credit cards Following talks, PLI would be determined by each bank's total performance, as affirmed by the 11th Bipartite Settlement (BPS) and 8th Joint Note, which were signed in November 2020.
June 2024 saw additional revisions to this agreement, but the fundamental framework stayed the same: rewards were to be given according to on collective performance.
What has changed now?
In November 2024, the Government of India (DFS, Finance Ministry) changed the system without consulting bank unions. The new rule states that PLI for Scale IV officers and above (senior management) will now be based on individual performance instead of the collective performance of the bank.
This change only affects officers in Scale IV and above, while junior officers and clerical staff will continue to receive incentives based on the bank’s overall performance.
Why are bank unions opposing this change?
The AIBEA and other bank unions have raised strong objections to the government’s move. They argue that:
It is a unilateral decision: The PLI scheme was originally decided bilaterally between IBA and UFBU. The government did not consult bank unions before making this change.
It creates division: Under the new rule, some senior officers will receive huge incentives, while lower-level employees will get much less.
It is discriminatory: While a few officers will get a very high PLI, many deserving employees will not receive anything.
It is unfair to banks as a whole: If a bank performs poorly due to external reasons (such as fraud or government policies), the entire workforce suffers, even if some employees worked hard.
It violates previous agreements: The UFBU had already agreed on a collective PLI system in previous wage agreements, and this sudden change goes against that.
In opposition to this decision, the AIBEA and other bank unions have chosen to demonstrate. They insist that the government go back to the original collective performance model and remove the current individual-based PLI system. Bank officers and staff are currently awaiting additional talks between the government, the Indian Banks' Association, and bank unions. In the upcoming months, there might be bank staff strikes and widespread rallies if the government doesn't change its mind.
The government's new PLI system has been met with fierce criticism from bank unions. Bank unions are concerned that this may result in discrimination, inequality, and needless competition among employees, despite the government's claim that individual incentives will improve performance.
The coming weeks will be crucial in deciding whether this issue will escalate into a major confrontation between bank employees and the government.
In accordance with the November 2024 recommendation from the Finance Ministry, Punjab National Bank (PNB) has updated its transfer policy for officials. The goal of this policy is to make officer transfers across public sector banks more transparent, consistent, and equitable. While taking into account geographical considerations, tenure restrictions, employee preferences, and grievance redressal procedures, the new standards guarantee a systematic approach to postings.
Key Highlights of PNB’s Transfer Policy
Automated and Transparent Transfer Process
PNB is implementing an online system to manage officer transfers, eliminating manual interventions and reducing bias. This system will automate the entire transfer process, allowing officers to indicate their preferred locations and ensuring fairness in postings.
Tenure-Based Transfer Guidelines
To prevent stagnation and ensure operational efficiency, PNB has introduced specific tenure limits for officers:
Maximum of 3 years at a single branch
Up to 6 years within the same circle
Up to 9 years within the same zone
After 9 years, officers are expected to transfer outside their current state to ensure better workforce distribution and professional growth
Support for Women Employees
Recognizing the need for work-life balance, the policy prioritizes female officers for postings near their preferred locations. This measure aims to reduce the stress of frequent relocations and provide a supportive work environment.
Structured Grievance Redressal Mechanism
PNB will establish a dedicated grievance redressal system to handle concerns related to transfers. Officers can submit appeals for review, and genuine hardship cases will be considered to ensure fair and timely resolutions.
Regional and Linguistic Considerations:To enhance customer service efficiency, officers up to Scale-III will be preferably posted within their linguistic regions, ensuring better communication with customers. However, such accommodations will be subject to vacancy availability and administrative needs.
Timely and Systematic Transfers: Regular transfers will be completed before June each year, allowing officers to plan relocations in advance.Mid-year transfers will be minimized and will only occur in cases of promotions, disciplinary actions, or urgent administrative requirements.
Posting in Difficult Areas: Some locations will be classified as “Difficult Areas” due to factors like harsh climate, limited infrastructure, or security concerns. Officers serving in these areas will receive priority for transfers upon completing their designated tenure pps.
