Indian Overseas Bank received Income Tax Refund worth Rs.1,359 Crore

The State-owned Indian Overseas Bank (IOB) announced on Tuesday, December 10, that it has received an order confirming a refund of Rs.1,359.29 crore for the assessment year (AY) 2015-16, including interest under Section 244A.

“According to the order dated 17.08.2024, the amount refundable to the Bank for the AY 2015-16 including interest u/s 244A of the Income-tax Act is Rs.1359,29,17,840,” according to Indian Overseas Bank’s regulatory filing.

The order, dated August 17, 2024, follows prior orders issued by the Commissioner of Income Tax (Appeals) in March and December 2023. Through the Income Tax Portal, the bank was informed about the return order on December 10, 2024.

Indian Overseas Bank reported a 24.4% year-on-year (YoY) increase in net profit to Rs.777.2 crore for the second quarter ending September 30, 2024. In the preceding financial quarter, Indian Overseas Bank had a net profit of Rs.624.6 crore, according to a regulatory filing.

Net interest income (NII), which is the difference between the interest revenue a bank generates from its lending activities and the interest it pays to depositors, rose 8.2% to Rs.2,537.3 crore from Rs.2,345.8 crore in the same quarter of FY24.

The gross non-performing asset was 2.72% in the September quarter, compared to 2.89% in the June quarter. Net NPA was 0.475%, compared to 0.51% in the previous quarter.

In monetary terms, gross NPA stood at Rs.6,249.1 crore versus Rs.6,648.7 crore QoQ, while net NPA stood at Rs.1,059.3 crore compared to Rs.1,153.5 crore in the preceding quarter. Provisions totalled Rs.1,146.3 crore, compared to Rs.937.9 crore in the previous quarter and Rs.1,044.2 crore year on year.

Shares of Indian Overseas Bank closed at Rs.56.91 on the BSE, down Rs.0.53, or 0.92%.