New Delhi: Indian Overseas Bank (IOB) on Tuesday said the Central Bank of Sri Lanka (CBSL) has imposed a monetary penalty of ₹2.90 lakh on its Colombo branch following the detection of certain regulatory non-compliances during an inspection.
In a regulatory disclosure, the public sector lender said the penalty was levied for violations of provisions of Sri Lanka’s Financial Transactions Reporting Act, No. 6 of 2006, observed during a joint onsite inspection carried out by the Financial Intelligence Unit (FIU) and the Bank Supervision Department of CBSL between March and June 2025.
The Sri Lankan regulator had issued a show-cause notice to the bank on November 10, 2025. IOB said it submitted its response on November 24, outlining corrective measures taken to address the observations. According to the bank, the regulator has expressed satisfaction with the remedial steps and acknowledged the same in a letter dated January 5, 2026.
“The financial impact is not material and is limited to the extent of the monetary penalty imposed,” the bank said in its disclosure to stock exchanges. IOB added that all observations flagged by the regulator have since been duly addressed.
Indian Overseas Bank shares are listed on both the BSE and NSE. The lender said there are no further sanctions or restrictions arising from the communication received from the Sri Lankan central bank