Indian Overseas Bank Faces Significant Demand of Rs 1742.96 Crore

Indian Overseas Bank Faces Significant Demand of Rs 1742.96 Crore

The Indian Overseas Bank (IOB) has recently informed the stock exchanges about the receipt of an assessment order from the National Faceless Assessment Unit (NFAC). The department has raised a huge demand of Rs 1742.96 crore after recomputing the bank’s income and making disallowances.

Background

The department has recalculated the income of Indian Overseas Bank after making certain disallowances regarding the claims made in the bank’s Income Tax Return (ITR). As a result, the bank has been held liable to pay a big penalty of Rs 1742.96 crore for the assessment year 2024-25.

Key Details of Order

Particulars	Details
Issuing Authority	National Faceless Assessment Unit (NFAC), Income Tax Department
Date of receipt	27.03.2026
Type of Communication	Demand Notice under Income Tax Act
Amount demanded	Rs 1742.96 Crores
Assessment Year	2024-25

Bank’s Further Step

Indian Overseas Bank has stated that it is in the process of challenging the order before the appropriate appellate forum. The bank will challenge the additions made to its income in the assessment order. IOB believes that it has enough factual and legal grounds based on which it can substantiate its position in the matter.

Financial Impact

Indian Overseas Bank hopes for relief in this matter, based on which it does not expect any impact on the financial, operations or other activities.

Bank’s Disclosure Compliance

Indian Overseas Bank disclosed the above information on March 27th, 2026, to both stock exchanges under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.