Indian Overseas Bank receives Income Tax Refund of Rs. 1,238 Crore

Indian Overseas Bank has received an order of a tax refund of Rs. 1,238 crore from the Income Tax Department, according to an exchange filing on Tuesday.

The tax refund order issued by the taxation authority relates to the 2019-20 financial year, according to the public sector lender. The amounts also include interest, as specified in Section 244-A of the Income Tax Act.

The new tax refund would be paid to Indian Overseas Bank a few months after it received another refund of Rs. 123.8 crore from the Income Tax Department. The refund order applied to the financial year 2021-22, the lender stated in a regulatory filing in September.

In the quarter ended September 30, the bank’s standalone net profit increased 24% to Rs 777 crore, up from Rs 625 crore in the previous year. The net interest income—the difference between interest collected and interest paid—for the quarter increased by 8% to Rs 2,538 crore. This compares to Rs 2,346 crore reported in the same quarter of the previous financial.

The asset quality of Indian Overseas Bank also improved from July to September, with the gross non-performing assets ratio falling to 2.72% from 2.89% in April-June. The net NPA ratio also fell to 0.47% from 0.51% in the previous quarter.

On November 26, Indian Overseas Bank shares closed 0.02% lower at Rs 52.45 each on the NSE, compared to a 0.11% decrease in the benchmark Nifty 50 index. The stock has increased by 32.28% over the last year and 20.3% year to date.