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  5. IDBI Bank gets massive ₹2,700-crore tax refund order. Details here

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IDBI Bank gets massive ₹2,700-crore tax refund order. Details here

Upstox
By Upstox News Desk

2 min read | Updated on June 08, 2024, 09:18 IST

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SUMMARY

IDBI Bank has been in the news this week, as its shares spiked on Monday on reports claiming that the government may resume its divestment process. The lender's stock has given 26% return year-to-date.

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IDBI
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IDBI Bank was among the PSU lenders which plunged on the stock market on the day of election results

IDBI Bank was among the PSU lenders which plunged on the stock market on the day of election results

IDBI Bank informed the exchanges that it has received an income tax refund order worth over ₹2,700 crore. The amount pertains to financial year 2016-17.

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"We wish to inform you that IDBI Bank Ltd has received an Order under Section 254 r.w. Section 143(3) of the Income Tax Act, 1961 from the Income Tax Department, Government of India for the Assessment Year 2016- 17 on June 07, 2024. As per the order, refund of ₹2,701.62 crores (including interest) has been determined," it said in a regulatory filing made post the market hours on Friday.

The bank is in the process of evaluating the implications of this order on the financial statements, it further added.

The update was shared days after IDBI Bank witnessed a spurt in its shares on reports of government planning to resume the process to divest its stake in the lender. The stock had jumped by nearly 9.5% June 3.

Also Read: IDBI shares rise over 9% amid reports of government to resume divestment process

Currently, the Government of India owns a 49.24% stake in IDBI Bank, while the country’s largest insurance company Life Insurance Corporation of India (LIC) owns a 45.48% stake in the bank.

Year-to-date, IDBI Bank's stock has given returns of 26%, and the surge has been sharper at 56.4% in the past one year.

The lender released its earnings for the March quarter last month. The net profit rose 44% year-on-year to ₹1,628 crore, whereas the net interest income rose 12% YoY to ₹3,688 crore.

On Friday, the bank's scrip settled 2.27% higher at ₹85.55 apiece on the NSE.

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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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