IOB Faces Rs 699 Crore GST Demand Notice

Indian Overseas Bank (IOB) has received a demand notice of Rs 699.52 crore from tax authorities over alleged GST liabilities for 2020-21, including a Rs 35.26 crore penalty. The bank disputes the claim, citing legal grounds, and has challenged it in court. IOB assures that the demand will not affect its financial position or operations.

Despite the tax issue, IOB continues strong financial performance. In Q3 FY25, the bank reported a 21% rise in net profit to Rs 875.27 crore, driven by a 15% increase in interest earnings. Total income also grew by 13%. Additionally, the government holds a 96.38% stake in IOB, which recently received an income tax refund of Rs 1,359.29 crore for FY16.

However, IOB’s shares declined over 4% to a 52-week low of Rs 43.68 due to market selloffs, reflecting a 16% drop since the year's start.