Indian Overseas Bank has completed its annual interest payment of ₹57.19 crore on BASEL III Tier-II Bonds Series IV, adhering to its scheduled obligation as of March 31, 2026. The payment was executed in compliance with Regulation 57 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, demonstrating the bank's commitment to regulatory adherence and investor obligations.

Bond Details and Payment Structure

The BASEL III Tier-II Bonds Series IV, carrying ISIN INE565A08043, represent a significant component of the bank's capital structure with a total issue size of ₹665 crore. The bonds operate on an annual interest payment frequency, providing predictable returns to bondholders.

Payment Timeline and Execution

The bank maintained strict adherence to its payment schedule, with all key dates executed as planned. The interest payment record date was established as March 16, 2026, providing bondholders with adequate notice for the upcoming payment.

Regulatory Compliance and Disclosure

The payment notification was submitted to both BSE Limited and National Stock Exchange of India Limited as part of the bank's regulatory disclosure obligations. The bank confirmed that no delays or non-payment issues occurred during this payment cycle, maintaining its track record of timely interest payments to bondholders.

The disclosure was signed by Raghuram Mallela, Deputy General Manager and Company Secretary & Compliance Officer, on April 1, 2026, ensuring proper corporate governance protocols were followed throughout the process.

Indian Overseas Bank has received a penalty order of Rs 8,23,79,584 from Central Goods and Services Tax (CGST) authorities, which the bank disclosed under Regulation 30 of SEBI listing requirements on 30.03.2026. The penalty stems from the bank's actions during enforcement proceedings under the SARFAESI Act in FY 2020-21.

Penalty Details and Background

The order was issued by the Commissioner (in-situ), CGST, Delhi West Commissionerate under Section 74(9) of CGST Act, 2017. The penalty relates to consideration received by the bank during its statutory enforcement actions as a secured creditor under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).

Nature of the Disputed Transaction

The penalty concerns the bank's possession of a building and leasehold rights in a secured asset and its subsequent transfer through e-auction to a purchaser during FY 2020-21. Indian Overseas Bank took these actions in exercise of its statutory powers under the SARFAESI Act as a secured creditor.

Bank's Position vs Authority's Stance

The bank has contested the penalty on several grounds:

• Bank's Contention: The bank argues that when acting under SARFAESI provisions, it merely enforces its security interest and facilitates transfer of secured assets, and cannot be treated as a "supplier" under GST law
• Transaction Nature: The bank maintains that the transaction is involuntary and statutory in nature, arising from enforcement proceedings rather than commercial supply
• Authority's Position: The tax department contends that all essential ingredients of "supply" under Section 7(1)(a) of CGST Act, 2017 are satisfied, citing Paragraph 2(a) of Schedule II which deems lease, tenancy or license to occupy land as supply of service

Bank's Response and Expected Impact

Indian Overseas Bank is preparing to file an appeal before the appropriate forum against the penalty order within prescribed timelines. The bank has indicated several key aspects of its response strategy:

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The bank filed the requisite Form A disclosure detailing the communication from regulatory authorities, as required under Industry Standards Note on Regulation 30 of the LODR Regulations.

The bank's Deputy General Manager and Company Secretary, Raghuram Mallela, signed the disclosure documents, confirming the information provided is true, correct and complete to the best of his knowledge and belief.