Indian Overseas Bank Gets Another Refund Order, This Time It's Rs 808 Crore

Indian Overseas Bank has received a refund order of Rs 808 crore, according to an exchange filing on Wednesday.

The order dated July 7 states that the amount is refundable to the bank for the assessment year 2013–14, including interest, under section 244A of the Income Tax Act, the public sector bank said.

IOB said it "also became aware of the information" through the income tax portal on Wednesday.

A day earlier, the bank had received another tax refund order, which totalled Rs 1,359 crore and was for the assessment year 2015–16. While that order was dated Aug. 17, 2024, the bank said that it had received the order through the income tax portal on Tuesday.

Earlier, in November, the bank had informed via a stock exchange filing that rating agency ICRA Ltd. had reviewed and upgraded the rating of its non-convertible securities to AA, and also revised its outlook to 'stable'. The earlier rating by the agency for the bank's Basel III Tier II Bonds was AA- and at that time, it had given it a "positive" outlook.

In November, the lender had received a tax refund order of Rs 1,238 crore, including interest, from the Income Tax Department and that pertained to the assessment year 2019–20. 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 from Rs 625 crore in the year-ago period. The Chennai-based lender's net interest income had risen 8% to Rs 2,538 crore in the second quarter of the current financial year from Rs 2,346 crore in the corresponding quarter of the previous fiscal.

Shares of IOB closed 1.37% higher at Rs 57.65 apiece on the National Stock Exchange, compared to a 0.13% advance in the benchmark Nifty.