Indian Overseas Bank to receive IT refund of Rs 1,359 crore for AY15-16; shares rise
In November, IOB received a tax refund from the Income Tax Department of Rs 1,238 crore, relating to the 2019-20 assessment year.
Shares of public lender Indian Overseas Bank (IOB) jumped three percent in the morning session on December 11, after the state-owned bank received an order confirming a refund of Rs 1,359.29 crore for the assessment year 2015-16, which includes interest.
“We wish to inform you that the order was received through Income Tax Portal on December 10, 2024 and the Bank also became aware of the information in respect of the above said order on December 10, 2024,” said the bank in a filing with the bourses.
At 9.15 am, shares of Indian Overseas Bank surged 3.4 percent to quote Rs 38.85 on the NSE.
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Earlier in November, Indian Overseas Bank received a tax refund from the Income Tax Department of Rs 1,238 crore, relating to the 2019-20 assessment year and includes interest under Section 244-A of the Income Tax Act.
Just two months earlier, the bank had reported another tax refund of Rs 123.8 crore for the 2021-22 assessment year, as disclosed in a September regulatory filing.
For the second quarter ending September 30, 2024, Indian Overseas Bank posted a 24.4 percent year-on-year increase in net profit, reaching Rs 777.2 crore, compared to Rs 624.6 crore in the same period last year. Net interest income rose by 8.2 percent to Rs 2,537.3 crore from Rs 2,345.8 crore in the corresponding quarter of FY24.
The bank’s gross non-performing assets (GNPA) improved to 2.72 percent in the September quarter, down from 2.89 percent in June. Similarly, net NPA declined to 0.475 percent from 0.51 percent in the previous quarter.
Over the past 12 months, the bank’s stock has gained around 30 percent, outperforming the benchmark Nifty 50 index that has a 12 month run of around 17.5 percent.
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