Indian Overseas Bank Receives ₹502.29 Crore Income Tax Demand Notice For AY 2017-18; Shares Rise 2.36%

Mumbai, March 10: Indian Overseas Bank disclosed on Tuesday that it will challenge the income tax demand notice of ₹502,29,08,834 for assessment year 2017-18 from the Income Tax Department. Shares of the public sector lender closed at ₹33.81, up 2.36%, according to exchange data on March 10, 2026.

Income Tax Department Issues Demand Notice

Indian Overseas Bank informed stock exchanges through a disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 regarding receipt of a statutory communication from the tax authority.

The bank said it received a demand notice under Section 156 of the Income Tax Act, 1961 from the office of the Deputy Commissioner of Income Tax, Non Corporate Circle 8, Chennai. The communication gives effect to an order of the Income Tax Appellate Tribunal referenced as ITA No. 203 and 254/Chny/2023 dated December 31, 2024.

According to the filing, the notice relates to assessment year 2017-18 and demands payment of ₹502,29,08,834 following recomputation of income and disallowances related to claims made in the bank’s income tax returns.

Indian Overseas Bank stated that it is examining the order and intends to contest the demand. The bank said it will file an appeal before the appropriate appellate forum within the prescribed timelines.

Share Price Movement On March 10, 2026

Shares of Indian Overseas Bank ended the trading session on March 10, 2026 at ₹33.81, rising ₹0.78 or 2.36% compared with the previous close of ₹33.03, according to exchange data.

During the session the stock traded between ₹33.03 and ₹33.95. The upward move occurred even as the disclosure regarding the tax demand was released during the day.

In its regulatory filing the bank indicated that it expects no financial implications from the communication at this stage because it intends to dispute the entire demand.

Bank Says Demand Will Be Challenged

The lender stated that it has adequate factual and legal grounds to challenge the order. Management indicated that the bank believes the demand could be reduced or set aside based on precedents and appellate review.

According to the disclosure, the bank expects that the entire demand may eventually subside after adjudication. As a result, it said no material impact is anticipated on the bank’s financial position, operational activities or other business functions.

The communication also clarified that no penalties, restrictions or sanctions have been imposed in connection with the notice.

Company Background

Indian Overseas Bank is a government owned public sector bank headquartered in Chennai and listed on both the BSE and the National Stock Exchange.

The lender provides retail banking, corporate lending, treasury services and international banking operations. It operates through a nationwide branch network and maintains overseas presence in select markets.

Like other scheduled commercial banks in India, Indian Overseas Bank periodically faces tax assessments and regulatory reviews relating to past financial years. Such matters are typically addressed through statutory appellate mechanisms provided under the Income Tax Act.

Conclusion

The regulatory disclosure confirms that Indian Overseas Bank has received a tax demand of ₹502.29 crore linked to assessment year 2017-18 following recomputation of income and disallowances identified by the tax authority. The bank has stated that it will contest the order through the appropriate appellate process and expects no immediate financial impact.

Despite the disclosure, the stock recorded gains during the March 10, 2026 trading session, closing 2.36% higher at ₹33.81 according to exchange data.

Source:

• https://www.nseindia.com/get-quote/equity/IOB/Indian-Overseas-Bank
• https://nsearchives.nseindia.com/corporate/IOB_10032026110817_BSE_NSE_Disclosure_to_Stock_Exchanges_Income_Tax_Demand.pdf