Indian Overseas Bank to Receive ₹1,359 Crore IT Refund for AY 2015-16

State-owned Indian Overseas Bank (IOB) announced on Tuesday, December 10, that it has received an order confirming a refund of ₹1,359.29 crore, including interest, for the assessment year 2015-16 under Section 244A of the Income-tax Act.

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"The order dated 17.08.2024 confirms that the amount refundable to the Bank for AY 2015-16, inclusive of interest under Section 244A, is ₹1,359,29,17,840 (Rupees One Thousand Three Hundred Fifty-Nine Crores Twenty-Nine Lakhs Seventeen Thousand Eight Hundred and Forty Only)," the bank mentioned in its regulatory filing.

This directive, issued on August 17, 2024, follows previous rulings from the Commissioner of Income Tax (Appeals) in March and December 2023. The bank received notification of the refund order via the Income Tax Portal on December 10, 2024.

Indian Overseas Bank's shares closed at ₹56.91 on the BSE, reflecting a decline of ₹0.53 or 0.92%.

In its financial report, Indian Overseas Bank recorded a year-on-year (YoY) increase of 24.4% in net profit, amounting to ₹777.2 crore for the second quarter ending September 30, 2024. During the same quarter in the prior fiscal year, the bank reported a net profit of ₹624.6 crore, as disclosed in its regulatory filing.

The bank’s net interest income (NII)—calculated as the difference between interest earned from lending and interest paid to depositors—rose by 8.2% to ₹2,537.3 crore, compared to ₹2,345.8 crore in the corresponding quarter of FY24.

The gross non-performing asset (NPA) ratio improved to 2.72% during the September quarter, down from 2.89% in the June quarter. Similarly, net NPA decreased to 0.475% from 0.51% quarter-on-quarter (QoQ).

In absolute terms, gross NPA declined to ₹6,249.1 crore from ₹6,648.7 crore QoQ, while net NPA reduced to ₹1,059.3 crore from ₹1,153.5 crore in the previous quarter. Provisions increased to ₹1,146.3 crore from ₹937.9 crore QoQ and ₹1,044.2 crore on a YoY basis.