Easy Office
LCI Learning

IDBI Bank Receives Rs 2702 Crore Income Tax Refund for AY 2016-17

Last updated: 10 June 2024


Private sector lender IDBI Bank Ltd announced on Friday, June 7, that it has received an income tax refund order amounting to ₹2,701.62 crore for the assessment year 2016-17. This development comes as a significant financial boost for the bank.

Details of the Refund Order

IDBI Bank, in a regulatory filing, stated, "We wish to inform you that IDBI Bank Ltd has received an Order under Section 254 read with 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 7, 2024. As per the order, a refund of ₹2,701.62 crore (including interest) has been determined."

The bank is currently assessing the implications of this refund order on its financial statements. This significant inflow is expected to positively impact the bank’s financial health and liquidity position.

IDBI Bank Receives Rs 2702 Crore Income Tax Refund for AY 2016-17

Financial Performance Highlights

In the March quarter, IDBI Bank reported a standalone net profit of ₹1,628.5 crore, marking a 44% increase from ₹1,133.4 crore in the corresponding quarter of the previous financial year. The bank’s net interest income (NII) rose by 12.4% to ₹3,687.9 crore in the fourth quarter, compared to ₹3,279.6 crore in the same period last year.

Key Financial Metrics

  • Gross NPAs: Reduced to 4.53% from 4.69% quarter-on-quarter.
  • Net NPA Ratio: Remained steady at 0.34%.
  • Provision Coverage Ratio (PCR): Improved to 99.09% from 97.94% in the previous year.

Deposits and Advances

  • Total Deposits: Increased to ₹2,77,657 crore as of March 31, 2024, compared to ₹2,55,490 crore the previous year.
  • CASA Deposits: Grew to ₹1,40,027 crore with a CASA ratio of 50.43%.
  • Net Advances: Rose by 16% year-on-year to ₹1,88,621 crore as of March 31, 2024, up from ₹1,62,568 crore the previous year.
  • Advances Portfolio Composition: Corporate versus retail stood at 30:70 as of March-end.

Market Response

Following the announcement of the income tax refund, shares of IDBI Bank Ltd rose by ₹1.73, or 2.07%, to close at ₹85.46 on the BSE, reflecting positive investor sentiment.

Conclusion

The receipt of the ₹2,701.62 crore income tax refund is a notable event for IDBI Bank, potentially enhancing its financial stability and operational capability. The bank continues to show robust financial performance and growth in deposits and advances, positioning itself strongly in the competitive banking sector.

Join CCI Pro

Category Income Tax   Report

  279 Views

Comments



More »