INDIAN OVERSEAS BANK

(A Government of India Undertaking)

Central Office: 763, Anna Salai, Chennai – 600 002

APPLICATION FOR EMPANELMENT OF CONCURRENT AUDITORS

For the Financial Year 2026-27

AUDIT PERIOD

01.07.2026 to 30.06.2027

LAST DATE FOR SUBMISSION

10.06.2026

DEADLINE TIME

5:00 PM

⚠ IMPORTANT: Applications received after 5:00 PM on 10th June 2026 will not be entertained under any circumstances. Applications must be submitted to the respective Zonal Office / Regional Office of Indian Overseas Bank.

1. Introduction

Indian Overseas Bank (IOB), a premier public sector bank headquartered in Chennai, Tamil Nadu, is a wholly-owned subsidiary of the Government of India under the Ministry of Finance. With a vast network of over 3,400 domestic branches and international presence across several countries, IOB occupies a significant position in India’s banking landscape. To uphold the highest standards of financial governance and regulatory compliance, IOB periodically invites applications from eligible Chartered Accountant firms for empanelment as Concurrent Auditors.

Concurrent Audit is one of the most critical audit mechanisms in the banking sector. Unlike statutory or internal audits conducted post-facto, concurrent audit operates in real-time, enabling the early detection of errors, irregularities, and potential frauds. For CA firms, securing empanelment with a scheduled bank like IOB is a prestigious professional achievement that opens doors to meaningful banking sector engagements.

2. About Indian Overseas Bank

Founded on 10th February 1937 by M. Ct. M. Chidambaram Chettyar, Indian Overseas Bank was established with the objective of specialising in foreign exchange business and overseas banking. Over the decades, the bank has evolved into a full-service commercial bank offering a wide range of financial products and services including retail banking, corporate banking, agricultural finance, and digital banking solutions.

Headquarters	Chennai, Tamil Nadu, India
Founded	10th February 1937
Ownership	Government of India (Public Sector)
Network	3,400+ domestic branches, 6 overseas territories
Regulator	Reserve Bank of India (RBI)
Listed On	BSE and NSE, India
Core Activities	Retail, Corporate, MSME, Agricultural & International Banking

3. What is Concurrent Audit?

Concurrent Audit is a systematic examination of financial transactions of a bank branch on a continuous basis, almost simultaneously as the transactions take place. The Reserve Bank of India (RBI) mandates concurrent audit for large and medium-sized branches of commercial banks as part of its supervisory framework to strengthen internal controls.

3.1 Objectives of Concurrent Audit

Ensure real-time verification of day-to-day banking transactions
Detect and report errors, omissions, and fraud at the earliest stage
Verify compliance with RBI guidelines, internal circulars, and banking regulations
Monitor adherence to Know Your Customer (KYC) and Anti-Money Laundering (AML) norms
Review the quality and genuineness of credit appraisals and loan disbursements
Ensure proper maintenance of books of accounts and registers
Flag income leakages, revenue recognition issues, and misclassification of accounts

3.2 Scope of Concurrent Audit at IOB Branches

The concurrent auditor is expected to cover, but is not limited to, the following areas during each audit visit:

Cash management, vault balances, and currency chest operations
Advances portfolio: sanction, disbursement, documentation, and follow-up
Deposits: new account opening, KYC compliance, and interest application
Foreign exchange transactions and NRI accounts
Off-balance sheet items: guarantees, letters of credit, and co-acceptances
Priority sector lending (PSL) compliance and reporting
IT security, CBS data integrity, and system audit observations
Suspicious transaction monitoring under PMLA

4. Eligibility Criteria for Empanelment

IOB, in line with the guidelines prescribed by the Institute of Chartered Accountants of India (ICAI) and the RBI’s framework for concurrent audit, specifies eligibility norms for CA firms applying for empanelment. The typical eligibility requirements are as follows:

4.1 Constitution of the Firm

The firm must be a partnership or LLP of Chartered Accountants registered with ICAI
Proprietary firms may be considered only for smaller branches depending on the bank’s internal policy
The firm must hold a valid registration certificate from ICAI as on the date of application

4.2 Experience Requirements

Minimum 3 to 5 years of existence of the firm (varies with notification)
Prior experience in bank audit (statutory, concurrent, or revenue audit) is desirable
Firms with existing empanelment with other public sector banks may be given preference

4.3 Manpower Requirements

A minimum number of full-time partners (typically 2 or more) with relevant banking experience
Adequate number of qualified assistants (CAs and semi-qualified staff) to handle field assignments
At least one partner must be a Fellow Chartered Accountant (FCA) with banking audit exposure

4.4 Other Requirements

The firm must not be under any disciplinary action by ICAI or any regulatory authority
No partner should be a statutory auditor of IOB branches during the concurrent audit tenure
The firm must have adequate infrastructure including qualified staff, computers, and internet connectivity

5. Application Process

IOB typically issues a formal notification inviting applications for concurrent audit empanelment annually or as required. The process involves the following steps:

Monitor the official IOB website (www.iob.in) and leading financial newspapers for empanelment notifications
Download the prescribed application form from the bank’s official portal
Fill in the form with accurate details of the firm’s constitution, partner details, experience, and office location
Attach all supporting documents including ICAI registration certificate, firm constitution details, and audit experience certificates
Submit the completed application to the designated Zonal Office or Regional Office of IOB within the stipulated deadline
Await communication from the bank regarding shortlisting and final selection

5.1 Key Documents to be Submitted

Copy of ICAI Firm Registration Certificate
Partnership deed or LLP agreement
Details of partners with their membership numbers and date of joining
Proof of previous bank audit assignments with experience certificates
Declaration of non-disqualification under applicable regulations
Copies of Income Tax returns of the firm for preceding years (if required)
Office address proof and infrastructure details

6. Terms of Appointment and Remuneration

Once empanelled, the CA firm is allotted specific branches based on the bank’s discretion, considering factors such as the firm’s location relative to the branch, their experience profile, and the complexity of the branch’s operations.

6.1 Tenure

The empanelment is typically for a period of one year, subject to review and renewal based on the quality of audit work, adherence to timelines, and feedback from the bank. The bank reserves the right to rotate auditors to ensure independence.

6.2 Audit Fees

The concurrent audit fee structure at IOB varies by the category and business size of the branch assigned. IOB follows a fee structure broadly in line with ICAI’s recommended scale of fees and RBI guidelines. Fees are generally structured as follows:

Branch Category	Business Volume	Indicative Monthly Fee
Very Large / Specialised	> Rs. 1,000 Cr	As per bank norms
Large Branch	Rs. 500 Cr to Rs. 1,000 Cr	As per bank norms
Medium Branch	Rs. 100 Cr to Rs. 500 Cr	As per bank norms

Note: Exact fee amounts are disclosed in the empanelment notification and are subject to revision by the bank from time to time.

7. Responsibilities and Duties of the Concurrent Auditor

The concurrent auditor must discharge their duties with diligence, objectivity, and professional integrity. The primary responsibilities include:

7.1 Audit Coverage and Frequency

The auditor is required to visit the assigned branch regularly as per the agreed schedule and complete the audit of transactions within stipulated timelines. Coverage frequency is typically daily or weekly depending on branch size and nature of transactions.

7.2 Reporting Obligations

Submit monthly concurrent audit reports to the branch and Zonal/Regional Office in the prescribed format
Highlight critical and serious irregularities in an interim report without waiting for the monthly report
Maintain confidentiality of all information obtained during the course of audit
Communicate directly with the branch manager for minor issues and with higher authorities for major lapses
Ensure follow-up on compliance of previous audit observations before submitting the next report

7.3 Independence and Ethics

The concurrent auditor must maintain strict independence and must not have any financial interest or business relationship with the branch staff or its customers. The auditor is expected to adhere to the ICAI Code of Ethics in letter and spirit at all times.

8. Key Areas of Focus During Concurrent Audit

Based on RBI guidelines and industry best practices, the following are critical areas that IOB concurrent auditors must examine with particular attention:

8.1 Credit and Advances

Review of all loan accounts sanctioned and disbursed during the period
Verification of credit appraisal notes, valuation reports, and legal opinion letters
Compliance with RBI IRAC (Income Recognition and Asset Classification) norms
Review of restructured accounts, NPA accounts, and written-off loans
CIBIL and credit bureau checks before loan disbursal

8.2 Regulatory Compliance

KYC and AML compliance for all account types
Adherence to RBI circulars and master directions
Compliance with FEMA provisions for foreign exchange transactions
Reporting under Suspicious Transaction Report (STR) and Currency Transaction Report (CTR)

8.3 Operations and Internal Controls

Cash verification and vault balance reconciliation
Reconciliation of inter-branch accounts and clearing items
Review of interest, charges, and commission calculations
Verification of locker operations and safe custody items
CBS system controls, password management, and user access reviews

9. Professional Benefits of IOB Concurrent Audit Empanelment

Being empanelled as a concurrent auditor with a major public sector bank like Indian Overseas Bank offers several professional and commercial advantages for CA firms:

Enhanced professional credibility and recognition in the banking sector
Steady and regular fee income ensuring financial stability for the firm
Practical exposure to complex banking transactions, regulatory frameworks, and technology-driven banking
Networking opportunities with senior bank officials and regulatory personnel
Strengthened eligibility profile for larger statutory bank audits and RBI empanelments
Team development through hands-on training of audit staff in live banking environments
Gateway to other banking assignments including stock audit, revenue audit, and information systems audit

10. Challenges and How to Address Them

While concurrent audit assignments are rewarding, CA firms must be prepared to address the following challenges proactively:

10.1 Operational Challenges

Managing large volumes of transactions within tight audit windows requires well-structured audit programmes and checklists
Constant changes in RBI guidelines necessitate continuous professional development and regulatory updates
Resistance from branch staff calls for tactful communication and escalation protocols

10.2 Technology Challenges

Auditing CBS (Core Banking Solution) platforms requires basic IT audit competence
Firms should invest in training staff on Finacle, BaNCS, or other CBS platforms used by IOB
Digital fraud patterns and cybersecurity risks must be incorporated into the audit framework

11. Important Guidelines from RBI and ICAI

The following regulatory and professional guidelines govern concurrent audit engagements in public sector banks:

RBI Master Circular on Concurrent Audit System in Commercial Banks
ICAI Guidance Note on Audit of Banks
ICAI Standards on Auditing applicable to banking engagements
RBI Guidelines on KYC/AML under Prevention of Money Laundering Act, 2002
Ministry of Finance guidelines on appointment of auditors in nationalised banks
IOB internal policies and concurrent audit manual issued by the bank

CA firms must familiarise themselves with the latest version of these documents before commencing the audit assignment. Regular updates from RBI’s official website and ICAI’s publications should be tracked diligently.

12. Conclusion

Empanelment with Indian Overseas Bank for concurrent audit represents a significant professional milestone for any Chartered Accountant firm. It is not merely an engagement for fee income but a responsibility of national importance, contributing directly to the stability and integrity of India’s banking system. CA firms that wish to build a strong banking audit practice must view IOB concurrent audit empanelment as a foundation upon which larger and more complex audit mandates can be built.

Eligible firms are strongly encouraged to monitor official IOB notifications, prepare a thorough application with complete documentation, and invest in building the necessary competencies in banking regulations and technology. With due diligence, professionalism, and a commitment to quality, empanelment with IOB can be a transformative step in the journey of any audit practice.

Link to apply online for Empanelment with Indian Overseas Bank for Concurrent Audit 2026-27

https://www.iob.bank.in/documents/d/guest/Tender1900

Empanelment with Indian Overseas Bank for Concurrent Audit 2026-27