Indian Overseas Bank receives ₹502 crore tax notice; check details and share price trend

State-run Indian Overseas Bank (IOB) on Tuesday, March 10, 2026, disclosed that the institutional lender has received an income tax demand notice of more than ₹502 crore from the Deputy Commissioner of Income Tax, Chennai, according to an exchange filing.

“This is to inform that bank has received Notice of Demand under Section 156 of Income Tax Act, 1961, from office of the Deputy Commissioner of Income-tax, Non-Corporate Circle-8 (1), Chennai- 600034, pertaining to AY 2017-18,” the company informed the stock exchanges.

NSE filing showed that IOB received the ₹502,29,08,834 or ₹502.29 crore tax demand notice from the authorities for the assessment year ending 2017-18 over alleged re-computation of income and disallowances, which were made with regard to income tax returns of the firm.

What does IOB plan to do?

IOB received the income tax demand notice from the Joint Commissioner’s office on March 9, 2026, and was disclosed with the exchanges on March 10. In the NSE filing, the PSU bank announced its plans to challenge and dispute the tax demand notice in front of the appropriate authority within the legal guidelines.

“The bank is in the process of challenging the said order in the appropriate forum against disallowances/additions made in the said order within the prescribed guidelines,” IOB said in its exchange filing on Tuesday.

The state-run bank also disclosed that it has ‘adequate factual and legal grounds’ to present its case on the development and expects relief from the authorities. “The bank expects that the entire demand will subside. As such, no impact is expected on financial, operations or other activities of the bank.”

IOB share price today

IOB shares were trading 1.21% higher at ₹33.43 as of 1:29 PM during Tuesday’s stock market session, compared to ₹33.03 at the previous market close, according to the NSE data. The PSU bank disclosed the tax demand update during the mid-day trading session on March 10, 2026.

The IOB stock price has given investors more than 94% returns on their investment in the last five years, and over 35% in the last three years, NSE data showed. However, the bank’s shares have lost 22.85% in the last one-year period.

On a year-to-date (YTD) basis, Indian Overseas Bank (IOB) shares have dropped 7.72% and are trading 4.86% lower in the last five sessions on the Indian stock market. The PSU bank stock hit its 52-week high of ₹45.15 on March 26, 2025, while the 52-week low was at ₹32.60 on Monday, March 9, 2026. The shares are trading above their year-low levels on Tuesday.

Data collected from NSE also showed that IOB’s market capitalisation (M-Cap) was trading at ₹64,451.81 crore as of the stock market session on March 10.