Indian Overseas Bank (IOB), a prominent public sector bank in India, has been directed to refund a substantial sum of ₹1,146.07 crores to the Income Tax Department, according to a recent disclosure by the bank.

Refund Order Details

The bank received an order under Section 154 of the Income Tax Act, 1961, dated June 16, 2025, with the Document Identification Number (DIN) ITBA/REC/M/154/2025-26/1077240600(1). This order was communicated to IOB via email on July 18, 2025, at 8:34 p.m.

Financial Implications

The refund amount, as specified in the order, totals ₹1,146,06,72,352 (One Thousand One Hundred and Forty-Six Crores Six Lakhs Seventy-Two Thousand Three Hundred and Fifty-Two Rupees). This sum includes interest under Section 244A of the Income-tax Act and pertains to the Assessment Year 2015-16.

Breakdown of the Refund Amount

Regulatory Compliance

In adherence to Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 and the SEBI Circular SEBI/HO/CFD/PoD2/CR/P/2023/0155 dated November 11, 2024, IOB promptly disclosed this information to the stock exchanges.

Market Impact

The news of this substantial refund may have significant implications for IOB's financial position and could potentially impact investor sentiment. Shareholders and market analysts will likely be closely monitoring how this refund affects the bank's liquidity and overall financial health.

IOB's management has not provided any additional comments on the circumstances leading to this refund order or its potential impact on the bank's operations. As this development unfolds, stakeholders will be keen to understand the broader context and any long-term implications for the bank.

Investors are advised to keep a close watch on any further announcements from the bank regarding this matter.

Indian Overseas Bank (IOB) has released its financial results for the first quarter, showcasing a remarkable performance across key metrics. The public sector bank has demonstrated significant improvements in profitability, asset quality, and interest income.

Substantial Growth in Net Profit

IOB reported a striking increase in net profit, which soared to ₹1,111.00 crore in Q1, up 76% from the same period last year. This substantial year-over-year growth highlights the bank's strong financial performance, driven by higher other income.

Boost in Interest Income

The bank's Net Interest Income (NII) saw a notable rise, increasing by 13% year-over-year. This growth in interest income indicates improved lending activities and effective asset utilization by the bank.

Improved Asset Quality

IOB has made significant strides in managing its asset quality:

• The Gross Non-Performing Asset (NPA) ratio improved to 1.97% from 2.14% in the previous quarter.
• The Net NPA ratio also showed improvement, decreasing to 0.32%.

These figures reflect the bank's effective strategies in managing and reducing non-performing assets.

Reduced Provisions

The bank's provisions declined to ₹844.00 crore. This reduction in provisions, coupled with improved NPA ratios, suggests better asset quality management and potentially lower credit risks.

Financial Highlights

Indian Overseas Bank's Q1 results demonstrate a robust financial performance, marked by significant profit growth, improved asset quality, and increased interest income. The reduction in NPA ratios and provisions further underscores the bank's progress in strengthening its balance sheet and operational efficiency.