Indian Overseas Bank Receives Rs 1,359-Crore Tax Refund Order

The Indian Overseas Bank on Tuesday said that it has received a tax refund order totalling Rs 1,359 crore for the assessment year 2015–16.

According to the order dated Aug. 17, 2024, "the amount refundable to the bank for the AY2015-16 including interest u/s 244A of the Income-tax Act is Rs 1359,29,17,840", the bank’s exchange filing stated.

The bank added that it received the order through the income tax portal on Tuesday and that it "also became aware of the information in respect of the above said order on 10.12.2024".

Earlier, in November, the public sector bank had received an order of tax refund of Rs 1,238 crore from the Income Tax Department. In that exchange filing, the bank had stated that the taxation body's tax refund order pertains to assessment year 2019-20 and that the amounts also included an interest, according to Section 244-A of the Income Tax Act.

This was preceded by the lender receiving another tax refund order of Rs 123.8 crore in September.

For the quarter ended Sept. 30, the bank's standalone net profit rose 24% to Rs 777 crore, compared to Rs 625 crore in the year-ago period. The Chennai-based lender’s net interest income had risen by 8% to Rs 2,538 crore in the second quarter of the ongoing fiscal. This compares to Rs 2,346 crore reported in the corresponding quarter of the previous fiscal.

Shares of Indian Overseas Bank closed 1.06% lower at Rs 56.87 apiece on the NSE, compared to a 0.04% decline in the benchmark Nifty 50.