Indian Overseas Bank gets GST Notice of Rs.700 Crore; Shares slip 4%:

Indian Overseas Bank gets GST Notice of Rs.700 Crore; Shares slip 4% The Deputy Commissioner (ST)-III, Large Taxpayers Unit, Chennai-35, has issued a demand notice of Rs 699.52 crore to the public sector lender Indian Overseas Bank (IOB) for alleged GST obligations for the assessment year 2020-21. The notice, dated February 27, 2025, includes a Rs.35.26 crore penalty plus tax and interest. The demand comes after an annual review of GST filings, during which authorities identified inconsistencies. However, the bank argues that it has a strong case and, based on professional legal advice, feels the demand is without legal merit. IOB has begun legal action to appeal the notice, and it expects the appellate authority to overturn the order. The bank further stated that the demand would have no significant impact on its finances, operations, or business activities. The bank reported a 21% year-over-year increase in net profit in the October-December quarter (Q3) of the financial year 2025. The bank's consolidated net profit in Q3FY25 was Rs.875.27 crore, compared to Rs.724.14 crore in the previous year. IOB reported Rs.7,115.88 crore in interest generated during the quarter, a 15% increase over the interest earned in Q3FY24. The bank's total income increased by 13% YoY to Rs.8,415.34 crore. At the end of December, the Government of India owned 96.38% of Indian Overseas Bank. That same month, the lender obtained confirmation of a Rs.1,359.29 crore income tax refund for the financial year 2015-16, which included interest under Section 244A. The refund order, dated August 17, 2024, follows prior findings issued by the Commissioner of Income Tax (Appeals) in March and December 2023. On December 10, 2024, IOB received notice of the order via the Income Tax Portal. In the meantime, the bank reported a 24.4% year-on-year (YoY) increase in net profit for the second quarter ended September 30, 2024, to Rs.777.2 crore, up from Rs 624.6 crore in the same time last year. IOB shares fell more than 4% to a 52-week low of Rs.43.68 per share. Since the beginning of the year, the IOB share price has fallen by roughly 16%. On Friday, as many as 908 equities fell to 52-week lows after a market selloff. The shares of Indian Overseas Bank (IOB) slipped 4.4% to an intraday low of Rs.41.63 on the BSE on Monday i.e. March 3, after the company received notice.