Indian Overseas Bank has announced a significant change in its Board composition with the appointment of Mr Thomas Mathew as RBI Nominee Director. The appointment comes as part of the Central Government's nomination process under banking regulations and represents a key leadership transition for the public sector bank.

Board Appointment Details

The Central Government, exercising powers under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, has nominated Mr Thomas Mathew to the Board of Indian Overseas Bank. The appointment was formalized through Notification F.No.6/3/2011-BO.I dated March 3rd, 2026.

Regulatory Framework

The nomination follows established procedures under clause (c) of sub-section (3) of section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970. This is read in conjunction with sub-paragraph (1) of paragraph 3 of the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970.

The appointment is effective immediately and will continue until further orders from the Central Government. Mr Mathew brings extensive banking experience from his tenure at the Reserve Bank of India, where he served as Principal Chief General Manager before retirement.

Compliance and Disclosure

Indian Overseas Bank has made this disclosure in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015. The bank has indicated that a detailed brief profile of Mr Thomas Mathew will be submitted in due course as per regulatory requirements.

The change in directorate reflects the ongoing governance processes in public sector banks, where RBI nominee directors play crucial roles in oversight and strategic guidance. Ms Sonali Sen Gupta's tenure as RBI Nominee Director has concluded with this transition.

Indian Overseas Bank has received a significant tax demand notice from income tax authorities, marking a major regulatory development for the public sector lender. The bank disclosed this information to stock exchanges under SEBI regulations on 03.03.2026.

Tax Demand Details

The bank received a Notice of Demand under Section 156 of the Income Tax Act, 1961, from the office of the Deputy Commissioner of Income-tax, Non-Corporate Circle-8, Chennai-600034. The notice pertains to Assessment Year 2015-16 and follows an order from the Income Tax Appellate Tribunal (ITAT).

Nature of Disallowances

The demand notice stems from re-computation of income and disallowances made with regard to claims made in the income tax returns for AY 2015-16. The tax authorities have identified aberrations and non-compliances in the bank's tax filings, leading to additions and disallowances in the assessment.

The order also mentions that penalty under Section 271(1)(c) of the Income Tax Act may be imposed separately, which could potentially increase the financial implications for the bank.

Bank's Response Strategy

Indian Overseas Bank has outlined its approach to challenge the tax demand:

• Filing an appeal before the appropriate forum against disallowances and additions
• Challenging the order within prescribed timelines
• Leveraging precedence and orders of appellate authorities
• Utilizing factual and legal grounds to substantiate its position

Financial Impact Assessment

Despite the substantial demand amount, the bank has expressed confidence in its legal position. According to the disclosure, Indian Overseas Bank believes it has adequate factual and legal grounds to reasonably substantiate its position in the matter. The bank expects that considering the expected relief, the entire demand will subside.

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 has fulfilled its obligation to inform investors about material developments that could potentially impact its operations.

The communication was signed by Raghuram Mallela, Deputy General Manager/Company Secretary & Compliance Officer, ensuring proper authorization and compliance with regulatory requirements. The bank has requested stock exchanges to take the disclosure on record and arrange for dissemination to market participants.