Indian Overseas Bank (IOB) has reported exceptional financial performance and received a significant tax refund, marking a period of robust growth and financial strength for the public sector lender.

Record-Breaking Profits

IOB has achieved its highest-ever net profit of Rs 1,111.00 crore in the April-June quarter, representing a remarkable 76% increase compared to Rs 633.00 crore in the same quarter last year. This impressive result follows another record-setting performance in the January-March quarter, where the bank posted a net profit of Rs 1,051.00 crore.

Management's Confidence and Growth Projections

Managing Director and CEO Ajay Kumar Srivastava expressed confidence in maintaining and growing these profit levels, citing consistent quarter-on-quarter increases over the past two years. The bank has set ambitious targets for the financial year, including:

• 12-13% credit growth
• Overall business growth of at least 12%
• Recovery target of Rs 4,500.00 crore, with Rs 851.00 crore already achieved in the first quarter

Strong Performance in Key Areas

The bank's gold loan portfolio continues to show exceptional performance, with 37-38% annual growth. This robust growth in the gold loan segment indicates the bank's strong position in this lucrative market.

Capital Raising and Ownership Structure

IOB plans to raise Rs 4,000.00 crore in the third quarter, a move that will reduce the Government of India's shareholding from 94% to 90%. This capital infusion is expected to strengthen the bank's financial position and support its growth initiatives.

Expansion Plans

In a bid to expand its presence in strategic locations, the bank is seeking approvals to open a branch in GIFT City, Gandhinagar. This move could potentially enhance IOB's capabilities in international banking and financial services.

Substantial Tax Refund

In a significant development, IOB has received an order for a tax refund of Rs 1,146.07 crore from the Income Tax Department. The refund, applicable for the Assessment Year 2015-16, includes interest under Section 244A of the Income Tax Act. This substantial inflow is expected to further bolster the bank's financial position.

Financial Results Publication

In compliance with regulatory requirements, IOB has published its financial results for the quarter ended June 30 in three newspapers: Economic Times (English), Jansatta (Hindi), and Dinakaran (Tamil) on July 19.

Indian Overseas Bank's recent financial achievements, coupled with the significant tax refund, paint a picture of a bank on a strong growth trajectory. The management's confident outlook and strategic initiatives suggest that IOB is well-positioned to capitalize on these positive developments in the coming quarters.

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.