Indian Overseas Bank Recruitment 2026: 250 LBO Posts, Apply Online

Indian Overseas Bank Recruitment 2026 is now open for 250 Local Bank Officer (LBO) vacancies in Junior Management Grade Scale-I (JMGS-I).

Indian Overseas Bank (IOB), a Government of India undertaking, started the online application process on August 8, 2026. Eligible candidates can submit their applications through the bank’s official website until August 24, 2026.

A key condition of the recruitment is that candidates can apply for only one state. Selected candidates will be posted in the state for which they apply and, according to the notification, will remain posted there for the first 12 years of service or until promotion to SMGS-IV, whichever is earlier. The four participating states are Tamil Nadu, Karnataka, Maharashtra and Gujarat, with Tamil Nadu accounting for the largest share at 100 posts. 

IOB Recruitment 2026: Important Dates

IOB has specified that applications will be accepted only through the online mode. No offline application will be accepted. 

IOB Local Bank Officer Vacancy 2026: State-Wise Posts

The bank has announced 250 vacancies across four states.

The official notification provides the category-wise distribution as 36 SC, 18 ST, 80 OBC, 22 EWS and 94 UR vacancies, with horizontal PwBD reservations as specified by the bank. The vacancy figures are provisional and may change according to the bank’s requirements.

IOB LBO Recruitment 2026: One-State Rule Is Important

Candidates should pay particular attention to the one-state application rule.

An applicant can apply against vacancies in only one state. A candidate who applies for one state cannot subsequently apply for another state under this recruitment.

IOB will prepare the merit list state-wise and category-wise. The state selected in the application cannot be changed later. 

This means candidates should decide their state carefully before submitting the form, especially because the local-language requirement is linked to the state selected.

IOB LBO Eligibility 2026

Educational Qualification

Candidates must have a degree in any discipline from a university recognised by the Government of India, or an equivalent qualification recognised by the Central Government.

The candidate must already possess a valid marksheet or degree certificate confirming graduation on the date of registration and must enter the graduation percentage in the application.

IOB LBO Age Limit

The age limit is:

• Minimum age: 20 years

• Maximum age: 30 years

The age and educational qualification cut-off date is August 1, 2026.

Candidates must have been born not earlier than August 2, 1996 and not later than August 1, 2006, both dates inclusive.

Age Relaxation

The notification contains additional conditions governing cumulative age relaxation and the maximum permissible age. Candidates claiming relaxation must produce the relevant certificates when required.

IOB LBO Local Language Requirement

Local-language proficiency is one of the most important eligibility conditions in this recruitment.

Candidates must be able to read, write and speak the specified local language of the state for which they apply.

The requirements are:

• Tamil Nadu — Tamil

• Karnataka — Kannada

• Maharashtra — Marathi

• Gujarat — Gujarati

Candidates who have not studied the specified local language in Class 10 or Class 12 will have to appear for a Local Language Proficiency Test (LPT) before the Personal Interview.

A candidate who fails the LPT will not be considered for further selection. However, candidates who provide their Class 10 or 12 marksheet/certificate showing that they studied the required local language do not have to take the LPT. 

IOB LBO Salary 2026

The Local Bank Officer post is in Scale-I.

The basic pay scale notified by IOB is:

₹48,480 – ₹2,000/7 – ₹62,480 – ₹2,340/2 – ₹67,160 – ₹2,680/7 – ₹85,920

In addition to basic pay, DA, HRA, CCA and other applicable allowances/perquisites will be provided according to the bank’s rules in force from time to time. 

Therefore, the starting basic pay is ₹48,480 per month, before applicable allowances and deductions.

IOB LBO Probation Period

Selected candidates will be on probation for two years of active service from the date of joining.

Confirmation in the bank’s service will be governed by the applicable Officers’ Service Regulations. 

IOB LBO Service Bond

Candidates selected for appointment must execute a Financial Service Indemnity Bond of ₹2 lakh for rendering a minimum of three years of service.

This is an important condition for applicants comparing the IOB LBO recruitment with other bank officer opportunities.

IOB LBO Application Fee 2026

The application fee/intimation charges are:

The amounts are inclusive of GST.

The fee is non-refundable. Once paid, it cannot be refunded or adjusted against another IOB recruitment process. 

Payment can be made online through methods including debit card, credit card, internet banking and BHIM/UPI. Candidates should save the e-receipt after successful payment.

IOB Local Bank Officer Selection Process 2026

The IOB LBO selection process consists of:

Online Examination → Local Language Proficiency Test, where applicable → Personal Interview → Final Merit List

The LPT is required only for candidates who cannot establish that they studied the specified local language in Class 10 or Class 12.

Candidates must qualify the online examination to move forward. Those requiring the LPT must qualify that test before being considered for the interview. 

IOB LBO Exam Pattern 2026

The online examination will contain 140 objective questions carrying 200 marks.

Reasoning and Computer Aptitude, General/Economy/Banking Awareness and Data Analysis & Interpretation will be available in English and Hindi, while English Knowledge will be conducted in English. 

Is there negative marking in the IOB LBO exam?

Yes.

For every incorrect answer, one-fourth (0.25) of the marks assigned to that question will be deducted. There is no penalty for questions left unanswered.

What is the IOB LBO qualifying score?

There are no sectional qualifying marks.

The minimum aggregate qualifying marks in the online examination are:

However, merely achieving the minimum score does not guarantee selection or an interview call, as candidates are shortlisted according to the bank’s requirements and merit. 

IOB LBO Personal Interview and Final Selection

The Personal Interview carries 100 marks.

The minimum qualifying marks in the interview are:

For final selection, the online examination and interview carry an 80:20 weightage, respectively.

The final merit list will be prepared state-wise and category-wise. The minimum aggregate score of the online examination and interview is 30% for reserved categories and 35% for unreserved candidates. 

IOB LBO Exam Centres

The online examination will be held at centres across India.

Candidates can select an examination centre, but IOB reserves the right to allot a different centre based on administrative feasibility and other considerations.

The bank also states that requests to change the examination centre will not be entertained. 

How to Apply for IOB Local Bank Officer Recruitment 2026

Candidates should apply through the official IOB website.

The application process is:

1. Visit the IOB website.

2. Go to the Careers section.

3. Open Recruitment of Local Bank Officers – 2026-27.

4. Select the Local Bank Officer post.

5. Click Register Online.

6. Complete the initial registration.

7. Note the registration number and password received by email/SMS.

8. Fill in personal, educational and other required details.

9. Select only one state.

10. Upload the photograph and signature in the prescribed format.

11. Upload the left thumb impression and handwritten declaration.

12. Complete the application.

13. Pay the applicable fee online.

14. Submit the application.

15. Download and save the system-generated application form and payment receipt.

IOB specifically advises candidates to ensure that their names and other details match their certificates and marksheets. Incorrect information can lead to disqualification.

Documents Required for IOB LBO Recruitment 2026

Candidates should keep the following documents ready:

• Recent passport-size photograph

• Signature

• Left thumb impression

• Handwritten declaration

• Graduation marksheets/certificate

• Date-of-birth proof

• Local-language proof, where applicable

• Valid photo ID

• SC/ST/OBC/EWS certificate, where applicable

• PwBD certificate, where applicable

• Experience documents, where applicable

• No Objection Certificate for eligible candidates working in government, quasi-government organisations, PSUs or nationalised banks

For the examination, IOB accepts specified identity documents including Passport, Aadhaar/e-Aadhaar, PAN Card, Driving Licence, Voter’s Card and certain other permitted IDs. Ration Card and Learner’s Driving Licence are not accepted as valid ID proof for this recruitment. 

IOB LBO Application Photo and Signature Requirements

Applicants should prepare their scanned documents before starting the application.

The official notification requires:

• Recent passport-style colour photograph

• Photograph dimensions of 4.5 cm × 3.5 cm

• Preferred image dimensions of 200 × 230 pixels

• Photograph file size of 20 KB to 50 KB

• Signature in the prescribed format

• Left thumb impression

• Handwritten declaration

IOB also requires candidates to capture a live photograph during the application process using a webcam or mobile phone through the provided QR-code process. 

IOB LBO Recruitment 2026: Important Things Candidates Should Know

You can apply for only one state

The one-state restriction cannot be overlooked. Choose the state carefully because the application cannot later be changed to another state. 

Local language can determine whether you reach the interview

If your Class 10 or 12 records do not show that you studied the required state language, you will have to qualify the LPT.

Prior bank experience is not mandatory for basic eligibility

The educational eligibility requires a graduation degree in any discipline. The notification does not prescribe prior banking experience as a basic eligibility requirement.

Experience can affect pay increments

IOB says candidates with prior completed officer service in Scheduled Commercial Banks may receive one advance increment for each completed year, up to two increments, if the existing job profile substantially matches that of a Scale-I Generalist Officer.

Keep your registered email active

IOB may send interview and other recruitment communications through the registered email address. Candidates should regularly check their email and the bank’s website.