IDBI Bank Granted Rs.2,701 Cr Tax Refund Order for AY 2016-17

The IDBI Bank Limited (IDBI Bank or IDBI) is a Scheduled Commercial Bank under the ownership of the Life Insurance Corporation of India (LIC) and the Government of India. It was established by the Government of India as a wholly owned subsidiary of the Reserve Bank of India in 1964 as the Industrial Development Bank of India, a Development Finance Institution, which provided financial services to the industrial sector.

IDBI Bank received a Rs.2,701 Cr Tax Refund

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. The refund order was issued by the Income Tax Department on June 7, 2024, under Section 254 read with Section 143(3) of the Income Tax Act, 1961. The bank is currently assessing the implications of this substantial refund on its financial statements. This development is expected to have a notable impact on the bank’s financial position and may influence its future strategic decisions. 

Recent Q4 Performance

Conclusion: The substantial income tax refund of Rs.2,701.62 crore for the assessment year 2016-17 marks a significant financial boost for IDBI Bank. This refund, issued under Section 254 read with Section 143(3) of the Income Tax Act, 1961, not only improves the bank’s liquidity but also strengthens its financial position. As IDBI Bank evaluates the implications of this refund on its financial statements, the potential positive impacts on its financial health and strategic initiatives are anticipated to be noteworthy. The stock of IDBI Bank currently trades at Rs.87.88 a piece up by 2.71% today.

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