Indian Overseas Bank shares surge over 3% after ₹1,359 crore tax refund for AY2015-16

Shares of Indian Overseas Bank (IOB) gained over 3% during Tuesday’s trading session, reaching ₹58.40, following the announcement of a significant tax refund. The state-owned lender confirmed receiving a refund of ₹1,359.29 crore, including interest under Section 244A of the Income Tax Act, for the assessment year 2015-16.

The refund order, dated August 17, 2024, comes after prior rulings by the Commissioner of Income Tax (Appeals) issued in March and December 2023. The bank received official confirmation of the refund through the Income Tax Portal on December 10, 2024.

In terms of stock performance, Indian Overseas Bank has seen robust growth year-to-date, with a 35.54% increase. Over the past year, the stock has gained 33.68%, while its five-year growth stands at an impressive 477.54%.

The tax refund is expected to strengthen IOB’s financial position and provide additional liquidity, further boosting investor confidence in the state-run lender.