Indian Overseas Bank has received a substantial income tax demand notice of ₹642.74 crores for Assessment Year 2016-17, as disclosed under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations 2015. The bank received this communication on 26.03.2026 from the Joint Commissioner of Income-tax (in-situ), Non-Corporate Circle-8, Chennai.

Income Tax Demand Details

The demand stems from a Giving Effect order to ITAT Order ITA No. 202 & 253/Chny/2023 dated 31.12.2024 under Section 254 read with Section 143(3) of Income Tax Act, 1961. The following table summarizes the key details of the tax demand:

Bank's Response Strategy

Indian Overseas Bank has indicated it will contest the entire demand through appropriate legal channels. The bank stated it is in the process of challenging the order within prescribed guidelines, citing disallowances and additions made in the assessment order. According to the disclosure, the bank expects no financial implications as it plans to dispute the entire demand.

Expected Financial Impact

The bank has declared nil expected financial implications, stating it will be disputing the entire demand. The disclosure indicates that based on precedence and orders of appellate authorities, the bank believes it has adequate factual and legal grounds to substantiate its position. The bank expects the entire demand will subside, with no impact anticipated on financial, operations, or other activities.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30(13) of SEBI LODR Regulations, which requires listed entities to inform stock exchanges about communications from regulatory, statutory, enforcement, or judicial authorities. The communication was signed by Raghuram Mallela, Deputy General Manager/Company Secretary & Compliance Officer, ensuring proper corporate governance protocols were followed.

Nature of Tax Dispute

The demand relates to re-computation of income and disallowances made regarding claims in the income tax returns for Assessment Year 2016-17. No penalties, restrictions, or sanctions have been imposed pursuant to this communication, as indicated in the regulatory disclosure form.

Indian Overseas Bank has received an income tax demand notice worth ₹6.43 billion from the tax authorities, marking a significant development for the public sector lender.

Tax Demand Details

The bank has disclosed receiving this substantial tax demand notice, which represents a material financial obligation that requires immediate attention and appropriate response from the institution.

Regulatory Disclosure

As part of its compliance with regulatory requirements, Indian Overseas Bank has made this disclosure to inform stakeholders about the material development. Such tax demand notices typically require banks to evaluate their tax positions and determine the appropriate course of action.

Next Steps

The bank will likely need to assess the merits of the tax demand and decide on the appropriate response, which may include filing appeals or making provisions as required under banking regulations. This development will be closely monitored by investors and regulatory authorities as the bank navigates through this tax matter.