Indian Overseas Bank has announced a reduction in its One-Month Marginal Cost of Funds based Lending Rate (MCLR) by 10 basis points, bringing it down to 8.20% effective from March 15, 2026. The decision reflects the bank's ongoing efforts to optimize its lending rates in response to market conditions.

ALCO Committee Decision

The Asset Liability Management Committee (ALCO) of the bank made this decision during its meeting held on March 12, 2026. The committee reviewed the MCLR workings as on March 10, 2026 before approving the rate revision. The new rates will remain effective until the next committee review.

Revised MCLR Structure

The bank has provided a comprehensive breakdown of its tenor-wise MCLR rates following the revision:

Rate Structure Analysis

While the One-Month MCLR has been reduced, all other tenor rates remain unchanged. The Overnight MCLR continues at 7.95%, representing the lowest rate in the structure. The longer-term rates show a gradual increase, with the Three Year MCLR at 8.85% being the highest among all tenors.

Regulatory Compliance

The bank has communicated this revision to both BSE Limited and National Stock Exchange of India Limited under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was signed by Raghuram Mallela, Deputy General Manager and Company Secretary & Compliance Officer, ensuring proper regulatory compliance and transparency in the rate revision process.

Indian Overseas Bank has received a significant income tax demand notice of ₹502.29 crore from tax authorities for Assessment Year 2017-18. The bank disclosed this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, indicating its commitment to transparency with stakeholders.

Tax Demand Details

The demand notice was issued under Section 156 of the Income Tax Act, 1961, by the office of the Deputy Commissioner of Income-tax, Non-Corporate Circle-8, Chennai. The notice pertains to re-computation of income and disallowances made with regard to claims in the bank's income tax returns for AY 2017-18.

Bank's Response Strategy

Indian Overseas Bank has outlined a clear strategy to contest the demand notice. The bank is in the process of filing an appeal before the appropriate forum against the disallowances and additions made in the order within prescribed timelines. The management expressed confidence in their position, citing precedence and orders of appellate authorities.

Key aspects of the bank's response include:

• Filing appeal within prescribed guidelines
• Challenging disallowances and additions made by tax authorities
• Leveraging precedence from appellate authority orders
• Maintaining that adequate factual and legal grounds exist to substantiate their position

Expected Financial Impact

Despite the substantial demand amount, Indian Overseas Bank expects no financial implications from this notice. The bank's management believes it will successfully dispute the entire demand based on strong factual and legal grounds. This confidence stems from their assessment of similar cases and precedent orders from appellate authorities.

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 provided comprehensive details through Form A, covering all aspects of the communication received from tax authorities. This transparent approach demonstrates the bank's commitment to keeping investors and stakeholders informed about material developments.

The bank confirmed that no penalties, restrictions, or sanctions have been imposed pursuant to this communication, and the matter relates specifically to income computation disagreements rather than compliance violations.