Federal Bank has received a substantial Income Tax refund of ₹322.63 crore for Assessment Year 2016-17, marking a significant financial development for the private sector lender. The refund amount includes interest calculated under Section 244A of the Income Tax Act, 1961.

Regulatory Disclosure Details

The bank informed stock exchanges about this development through a regulatory filing in compliance with Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The disclosure was made pursuant to SEBI Master Circular requirements for regulatory compliance.

Income Tax Department Orders

Federal Bank received orders from the Income Tax Department, Corporate Circle 2 (1), Kochi implementing the Hon'ble Income Tax Appellate Tribunal (ITAT) order. These orders were issued under Section 254 of the Income Tax Act, 1961.

Financial Impact

The refund amount of ₹322.63 crore represents a significant cash inflow for the bank. This amount includes both the principal refund and interest calculated under Section 244A of the Income Tax Act, providing additional liquidity to the lender's operations.

Corporate Communication

The disclosure was signed by the Company Secretary of Federal Bank Limited and communicated to both National Stock Exchange of India Limited and BSE Limited as part of its regulatory compliance obligations. The bank requested the exchanges to take this information on record.

Federal Bank has received a substantial income tax refund of ₹489.60 crore from the Income Tax Department, as disclosed under regulatory compliance requirements to stock exchanges.

Official Regulatory Disclosure

The bank made the disclosure on March 27, 2026, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication was sent to both National Stock Exchange of India Limited and BSE Limited, ensuring full regulatory compliance.

Refund Components and Legal Framework

The aggregate refund amount of ₹489,60,20,918 includes interest under Section 244A of the Income Tax Act. The refund orders were issued under Section 254, which pertains to orders passed by the Income Tax Appellate Tribunal (ITAT), giving effect to the tribunal's order dated August 13, 2024.

The Income Tax Department's Corporate Circle 2 (1) in Kochi issued the final orders on March 26, 2026, at 8:09 p.m., completing the refund process that had been pending since the original assessment years.

Financial and Compliance Impact

This substantial refund represents a significant positive development for Federal Bank's financial position. The resolution of tax matters spanning multiple assessment years eliminates long-standing uncertainties and provides enhanced cash flow for the banking institution.

The bank's prompt disclosure under SEBI regulations demonstrates strong corporate governance practices and regulatory compliance. Company Secretary Samir P Rajdev signed the official communication, ensuring proper authorization and documentation of this material financial development.